HDFC ERGO launches first-of-its-kind satellite index-based Farm Yield Insurance Policy

New Delhi: HDFC ERGO on Monday announced the launch of a technology backed farm yield insurance policy for farmers.

“This is a first-of-its-kind insurance solution, where a satellite-based index will be used to provide localized farm level coverage. It will provide comprehensive cover across the crop life cycle from sowing to harvesting, basis satellite-based data.” the company said in a press release.

The product is targeted at farmers under corporate/farm input company (FIC) contracts and is valid for food, oilseed, commercial or horticulture crops.

“A threshold Index value is calculated for every yield by using the historical satellite imaging data of the specific crop and a remote sensing mechanism available in the public domain. The threshold/benchmark index will be then compared with the actual index value arrived at by the reference satellite for the insured crop, to determine if the yield is at loss,” the company added.

Since the policy is entirely based on technology, no manual survey is required during the claim assessment of the crop.

“One of the most direct ways disasters affect agriculture is through lower than expected or significant damage to the yield. This causes direct economic loss to farmers which can cascade along the entire value chain, even affecting the growth of the sector or the entire national economy,” said Hiten Kothari, Appointed Actuary, HDFC ERGO General Insurance Company.

Kothari added that the farm yield insurance cover will provide composite insurance to crops across stages of the cropping cycle, without the requirement of tedious manual surveys.

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