Economic Security through Rural Insurance in India

ABSTRACT: India lives in villages and about fifty per cent of the 5.76 lakh villages of the country are situated in different terrain characterized by poor socio economic conditions. Development of rural areas has been one of the paramount concerns of Indiaʹs successive Five Year Plans. A strategy to tackle poverty was adopted in the Sixth Plan as the benefits of general development programme had proven unsuccessful for the eradication of the poverty of the masses. Insurance is the safeguard against probable danger. Insurance can be bought against a particular event for its possible occurrence. It is a prevarication tool used as a preventive measure against future losses. This device is applied for minimizing or managing the future contingent risks. It is a mode of financially managing instrument through which a person gets the benefit of insurance coverage for a particular event. Therefore, a person buys future contentment and pleasure living through insurance. Rural Insurance refers to the safeguard against probable danger involved in rural activities. Rural activities where insurance coverage is required refer to agricultural operations, raring of livestock, health-related problems etc. The fundamental aim of this article is to empower the people to act on their own behalf and reestablish their livelihoods in a culture of peace. As such, this paper seeks to address the human security needs of the targeted communities in the areas of public safety, coexistence and reconciliation, health, education, training, employment and institutional support. Accordingly, the paper focuses on rural & agriculture insurance for economic, human security in rural India.