Different types of Rural Insurance

The emergence of rural insurance and its need can be simultaneously traced back to the period of insurance companies’ expansion and the increase of insurance business in the economical market of India. The insurance regulatory and development authority of India with its establishment played a vital role in the creation and beneficiaries of rural insurance. Rural insurance meaning might have found a solid and definitive concept with the passing of the Insurance Act of 1938 in sections 32-B and section 32-C. The creation and development of an insurance type that facilitates the concept of insurance targeted toward the benefit of economically backward and vulnerable sections of the society through rural insurance has proved to be a very vital programme in the development of the nation. The different types of rural insurance that came to be developed over the years have also proved to be a very vital contribution to the sectors of growth particularly the primary economic sectors of agriculture and in the rural areas of the nation. Also, the benefits achieved by the common mass and the section of the population through the rural insurance policy that completely depends on irrigation and agriculture have been quite fruitful and efficient. This may bring us to the fact of understanding rural insurance along with getting a brief about the different types of rural insurance and the features of the rural insurance policy.

A short note on rural insurance

Rural insurance is fundamentally an insurance program that has been specifically proposed for the rural population section to guarantee and ensure their agriculture-related tools, businesses like poultry, cattle, etc., from the government. The advantages of rural insurance lie in the concept of allowing the individual to get the benefits in any case of death of cattle or in crises such as loss of reaping crop species. Rural insurance policy defines the insurance companies to keep aside for individuals belonging to the financially vulnerable and economically challengeable segment of the population. Also, the IRDA has attempted to compile the two segments of the Insurance Act by creating it mandatory for insurers who tend to provide general guarantees to help flourish businesses in the rural economic sector. Further, the development of various rural development programmes and different types of rural insurance has also provided a developed concept of rural insurance meaning.

The rural insurance policy: a brief overview

The primary goal of the rural insurance policy is to economically provide full support so that the rural sections participating are assisted with functional capital benefits and producing assets such as financial credit assistance, additional grants, etc. These assistance provided for a similar goal help define the developmental rural insurance meaning. The beneficiaries of Integrated rural development projects in the form of different types of rural insurance would be preserved with additional and specific insurance-based policies. Rural insurance also ensures that these policies are available with decreased rates of special and simplified ways for the individuals or families to claim.

The different types of rural insurance

The rural insurance policy ensures that individuals and/or families belonging to the rural section can spend a happy life and proceed with a condition of a secured and strong future. Rural insurance helps them to adjust risks and get support for their different prospects and situations in life. Different types of rural insurance are present to assist individuals, some of them are:

• Vehicle Insurance: Comprehensive coverage for irrigation and cultivation based vehicles like tractors, pumps, scooters, motorcycles, etc.
• Possession Insurance: Helps individuals cover their property, retail branches, belongings and agricultural tools and utilities.
• Accident Insurance: Helps financially cover conditions of accidental demise, partial or complete disability of the policy insured due to an accident
• Livestock Insurance: This part of rural insurance meaning helps provide financial assistance for cattle in a situation of death or loss of functional ability
• Health Insurance: Special grants such as health coverage due to an accident and providing Mediclaims to the policyholder

The various schemes and programs provided by the rural insurance policy not only help an individual to ensure better future security but also the goals of rural insurance, which helps to assist them as a vital resource of financial support to flourish their livelihood. The different types of rural insurance also allow an economical development of both the nation and the rural agriculture sector based individuals.

Conclusion

The article has attempted to briefly emphasize the rural insurance meaning and bring up the various aspects of the rural insurance scheme. The article has also attempted to cover the importance and benefits of the rural insurance policy in addition to letting us know about the different types of rural insurance.