THE ROLE OF AGRICULTURAL INSURANCE IN ENHANCING AGRICULTURAL PRODUCTIVITY
ABSTRACT
Insurance is necessary to mitigate economic losses suffered by policyholders or the general public when the liability under the policy is a contingent liability. Agricultural insurance therefore covers losses suffered by farmers. For an insurance company to be successful in doing this, it must pay compensation out of contributions (premiums) from everyone involved in the insurance. The aim of this research work is therefore to examine whether agricultural insurance makes a meaningful contribution to increasing agricultural productivity. Agricultural weather insurance has a real acceptance among rural farmers. If farmers are compensated and paid fairly in case of losses. Agricultural insurance policies also allow farmers to prioritize areas of applicability over research work. Provides general background information on the role of agricultural insurance in increasing agricultural productivity. It also identified the issues to be investigated and the reasons for undertaking this research study, the scope and limitations of the study, and finally the research question and definitions of terms. A range of relevant literature affecting agricultural insurance was critically reviewed to provide sufficient background information for the study. We also consider study design, how to collect relevant data, how to distribute questionnaires, and how to handle data. Data obtained from research studies were analyzed, interpreted and presented. The questionnaire distribution, respondent characteristics, and NAIC’s two questionnaires were also specified in this chapter. Finally, a summary of results, conclusions about the study, and recommendations for researchers. It is very popular that, at the end of this study, researchers would have found that agricultural insurance indeed successfully contributed to its role in increasing agricultural productivity.
table of contents
Title page II
Approval page iii
dedication iv
Recognitionv
Conclusion vi
Table of Contents viii
chapter One
1.0 Introduction
1.1 Research Background 1
1.2 Problem definition 3
1.3 Validity of research
chapter One
1.0 Introduction
1.1 Research background
Agriculture insurance as an alternative to risk management began as crop insurance in Europe over 100 years ago and spread to the United States in the early 20th century. It has since been adopted by many people around the world, including Canada, Mauritius, Zimbabwe, the Philippines, Iran, Zambia, and Nigeria, with varying degrees of success and failure in agricultural production.
Since 1976, there has been a growing need to develop a valuable and more durable natural approach to risk management in agriculture in Nigeria, which continues to attract the attention of various governments. To this end, the Nigerian Agriculture Insurance Corporation was established and funded in large part by the central government and the private sector under the auspices of it. The Nigerian Agriculture Insurance Corporation started as a legal entity, but by Decree No. 37 of 1993, he became a legal entity in 1993. On December 15, 1987, President and Commander-in-Chief of the Nigerian Armed Forces, President Ibrahim Babangida Badamoshi, introduced the Nigerian Agriculture Insurance Scheme and a formal luncheon to benefit small, medium and large farmers against natural disasters. was intended to bring Subject to a set price called a premium.
In addition, Nigeria’s agricultural insurance scheme is designed to ensure the payment of sufficient compensation for farmers to continue their business after insuring the loss of the insured.
1.2 Problem
In the past, various governments in Nigeria have introduced various agricultural policies in their constant quest to improve agricultural productivity.
They have also expended many ardent aspirations to achieve increased agricultural production, but have continued and repeatedly failed.One of the reasons for this failure is that most farmers in Nigeria When the Nigerian Agricultural Insurance Scheme (NAIS) was established, he was completely unaware of the need to insure his farm and other farms from the federal government. Credit institutions, which are also tasked with financing agricultural development, are highly skeptical of lending to this sector because of the uncertainty and the risk of insecurity, so that financing is highly impractical. has been proven.
1.3 Importance of research
Agriculture insurance, unlike traditional insurance, is relatively new in Nigeria. Therefore, there are many problems in collecting research materials in the insurance field. This issue highlights the importance of this work, so the study will be useful to insurance students and other areas of interest who wish to conduct further research in this new field.
The study will directly serve as a better way to benefit and improve performance for both the federal government and Nigerian agricultural insurance companies. It also educates various marketing intermediaries on the need to be more effectively involved in program offerings to ensure program success.
Furthermore, the system acts as a kind of product for insurers (i.e., insured farmers), thereby contributing to the introduction of new and improved farming practices and potentially creating more farming practices. Increase confidence in all farmers (insured or not). Economic subsidies for agriculture increase state production.
1.4 Purpose of research
1. Examine the number of claims reported to the NAIC each year.
2. Determining the amount that farmers will pay for insurance premiums.
3. Examine the performance of relevant financial institutions and agricultural financial institutions in relation to insurance contracts.
4. The study will also examine the performance of agricultural activities under agricultural insurance.
1.5 Scope and Limitations of the Investigation
The Nigeria Agricultural Insurance Corporation is the only company with a network of branches in all of Nigeria’s agricultural policies, making this study unique. The surveys conducted are typically conducted in a dynamic environment, as they range from the Nigerian Agricultural Insurance Company’s headquarters in Abuja to the nearby Zornhi office in Enugu. Investigative work included agricultural products and insurance products. The amount of work required locally for this kind of investigation could not be done indefinitely. First, lack of funding; second, the death of books and journal magazines on agricultural insurance as secondary sources for data collection; Handling and loss of important information related to this work. 1.6 Definitions
The following terms used in this study should mean:
1. Agriculture Insurance:
An insurance company for farmers or interest groups in the agricultural sector.
2. Drawing:
By taking out insurance, you are committing to compensation in the event of loss. This is known as an underwriter as it is performed by an insurance company or insurance company. 3. Policyholders:
A natural or legal person who purchases insurance from an insurance company.
Four.
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