GURUGRAM, India | 14th December 2022: Seeds are much more than an input to agricultural production for farmers – they are a source of money, pride, and identity. Around the world, researchers, policy makers, and foundations are working hard to improve seed provisioning to farmers in order to boost agricultural productivity, nutrition, crop yield and profitability of the farmers. Along with the accessibility of seeds, farmers are also challenged with productivity and financial losses, in the event of failure of seed crops.
Upaj by Absolute in collaboration with Digisafe has announced the launch of their latest product, the ‘Seed Germination Protection Cover’ parametric-based insurance cover. This innovative insurance policy is designed to protect farmers & seed breeders against losses in seed costs.
The premium for this insurance cover is the lowest in the crop insurance industry. This low-cost insurance policy offers a cover of Rs 100/acre to help farmers protect their seed costs.
This product is being launched across 19000 pin codes in India, making it widely available to farmers in all regions. The aim of the seed germination protection cover is to help farmers safeguard against the risks associated with unseasonal weather events, which can be particularly damaging to crops in their early stages of growth. The offering will be available to farmers on the DIY insurance marketplace accessible via Upaj App.
Parametric insurance is a type of insurance that provides a predetermined payment in the event of a specific event occurring. In the case of seed germination, the predetermined payment is triggered if the germination rate of the seed is below a certain threshold. This threshold is determined by the insurer based on the type of crop and the specific conditions of the region.The main advantage of parametric insurance is that it is affordable and easy to understand. It provides a known, predetermined payout in the event of a crop failure due to poor seed germination. This payout is usually much less than the losses incurred by farmers in the event of a crop failure due to poor seed germination.
Parametric insurance also provides farmers with peace of mind. By knowing that they are protected against losses due to poor seed germination, farmers can concentrate on other aspects of their farming operations such as soil quality and weather conditions.
The cost of parametric insurance varies depending on the type of crop, the region, and the insurer. However, it is generally more affordable than traditional crop insurance, making it an attractive option for many farmers.
Sharing his thoughts on the seed germination protection cover, Sourabh Bagla, Director, Upaj, Absolute said, “By offering cost-effective insurance protection, Upaj and Digisafe are assisting farmers in lowering their financial risks and safeguarding their livelihoods. We are confident that the farming community in India will welcome the seed germination protection cover as an important addition to the lineup of insurance products accessible to farmers.”
Suman Roy Choudhury, Founder, Digisafe said, “We believe that this insurance cover will be a priceless tool for farmers, helping them to manage the risks associated with unseasonal weather and protect their crops and livelihoods. We are committed to working with farmers to help them succeed, and we look forward to seeing the positive impact of this new insurance product.”