The scope of rural insurance is very high although it is poorly realised. The fact that 70% of the population in India lives in rural areas and contribute to the development of the country in a big way makes it important for them to avail schemes meant for their welfare. Rural insurance ensures that families living in rural areas have a safe and secure future so that they can lead a happy life. According to the Insurance Regulatory and Development Authority of India (IRDA), rural sector which is eligible for this insurance has to fulfil the following categories: has a population less than 5,000 people, density of population is not more than 400 per square kilometre, minimum 75% of male population must be engaged in farming activities. Natural risks and disasters have pulled back the rural development. Therefore, there are dire needs of insurance for rural risks. Crop insurance, cattle insurance, life and property insurance, general insurance etc. have abundant scope of development. Rural insurance claim is processed and settled within 30 days of submitting the supporting documents.

Yogita Parihar

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