Agricultural Insurance. Theory and Practice and Application by P. K. Ray

By P. K. Ray

This publication, which offers comprehensively with agricultural coverage, is the second one version of a booklet that was once released in 1967. The ebook first bargains with the character of agricultural hazards and their insurability. the second one half describes the rules and practices of the most sorts of coverage presently utilized to agriculture in numerous nations. The 3rd and final half is a severe exam of the applicability of the ideas of crop and farm animals coverage to this point developed in built international locations to constructing international locations, and likewise the probabilities of overseas reinsurance of nationwide crop assurance structures.

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Extra info for Agricultural Insurance. Theory and Practice and Application to Developing Countries

Sample text

Thus, the second important point in insurance is that the uncertainty is to a large extent eliminated through combination of a large number of similar risks (that is, similarly exposed individuals). Strictly speaking, however, insurance does not seek to eliminate the cause of uncertainty, although the prevention and elimination of these causes today form an important part of the activity of most insurance offices. Under insurance, the individual risk remains uncertain and unpredictable; but the uncertainty is reduced and the risks become fairly predictable when they are considered in the aggregate.

4 Cf. Knight, F. , Risk, Uncertainty and Profit (Houghton, New York, 1935), p. 256. Cf. Willet, op. t p. 135. Also cf. , Economics (1928), p. 72. 6 Cf. Deibler, F. , pp. 180-3. 7 Knight, op. , p. 256. 8 The comparative features of the commercial or capitalistic insurance, on the one hand, and of the distributive or mutual insurance on the other, are discussed in Chapter 5. l The primary function of insurance is thus the elimination of the uncertain risk of loss for the individual. The first essential condition for insurance is that the risk must be uncertain, that is, accidental or fortuitous.

6 The experience of rain or weather insurance in Canada, although not strictly confined to agriculture, tends to support this view. 19 per cent. Where experience of insurance offices is not available the normal procedure would be to find from a long-period study the frequency of the relative probability of flood damage by given areas and then to compute the probability of loss of crops or of danger to farm and personal property. The susceptibility of different crops to damage from temporary flooding may also be determined for the prupose of flood insurance on growing crops.

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