Weather-based crop insurance
Insurance that pays on measured weather rather than on an assessment of your crop: if rainfall, temperature or humidity at the reference weather station crosses the trigger in the policy, the claim is paid.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Deficit or excess rainfall, measured against the term sheet for your crop and area
- Unseasonal rain during flowering or harvest
- High or low temperature during critical crop stages
- Humidity, wind speed and frost, where the term sheet includes them
- A payout calculated from weather station data, without a farm-level loss assessment
Key features
- Payout is driven by an index, not by inspecting the crop, so settlement can be quick
- A term sheet per crop, area and season sets the triggers, the exit and the payout scale
- The reference weather station matters: cover responds to its readings, not to your field
- Basis risk is inherent: a loss on your farm without a trigger at the station is not paid
- Operates through the Restructured Weather Based Crop Insurance Scheme, and through commercial index policies
- Enrolment closes on the cut-off date announced for the season
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us what to cover
Tell us the crop, the village and area sown, and the season, and we will check the term sheet that applies.
Compare plans
See premium, cover, exclusions and key terms from our partner insurers side by side.
Share details & KYC
Add the details the insurer needs and complete KYC with your PAN.
Get your policy
Pay online, the policy reaches your email, and your advisor stays with you at claim time.
Weather-based crop insurance: FAQs
How is this different from yield-based crop insurance?
Yield-based cover pays on an assessed shortfall for the insurance unit. Weather-based cover pays on measured weather against a published term sheet, which is faster, but only as close to your loss as the index is.
What is basis risk?
The gap between the index and your actual loss. If the weather station does not record the trigger there is no payout, even if your crop suffered. Cover referenced to a nearby station reduces it.
Do I have to file a loss claim?
Generally no. Payouts are calculated from the weather data once the season's readings are published, and paid to enrolled farmers without an individual assessment.
Which crops is it used for?
Commonly horticulture, plantation and other crops where yield is hard to measure quickly. The notified crop list for each state and season decides what can be insured.