By P. K. Ray
This booklet, which offers comprehensively with agricultural coverage, is the second one variation of a e-book that was once released in 1967. The booklet first offers with the character of agricultural hazards and their insurability. the second one half describes the foundations and practices of the most different types of assurance at the moment utilized to agriculture in several nations. The 3rd and final half is a serious exam of the applicability of the options of crop and cattle assurance to this point advanced in built nations to constructing international locations, and likewise the probabilities of foreign reinsurance of nationwide crop coverage structures.
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Extra resources for Agricultural Insurance. Theory and Practice and Application to Developing Countries
Analysis of hail losses in France, 1888-1933 (data from Int. Agric, IIA-Rome, 1935, p. 384). 34 Agricultural Insurance 50 75 100 Loss % of premium 125 175 Fig. 9. Frequency distribution of hail-loss ratios in France, 1888-1933. Out of data for 29 years actually taken, as many as 23 years experienced losses varying from 41 to 70 per cent of premiums. Considering each 25 per cent of loss-ratio, the greatest concentration occurred between 51 and 75 per cent. This can be observed from the frequency distribution curve in Fig.
6 By this device an industrial producer may eliminate the chance of loss or gain arising from fluctuations in the value of products used by him in the period between such use and their ultimate disposal as a finished product. The second instance is what is known as contracting out, the substance of which is an agreement of one party to deliver and of another to accept, on some future date and at a stipulated price, grain or any other commodity which may not as yet have reached maturity or marketable stage.
To be insurable a risk should satisfy the following basic conditions. First, a risk must be one which, when considered in the aggregate, has some uniformity of behaviour so that it is possible to measure and predict the probability of loss in the future. Such uniformity of behaviour can be established only when sufficient data have been collected with regard to risk or risks in question. Second, the peril should be one that cannot be wilfully caused to occur without involving some sacrifice on the part of the insured.
Agricultural Insurance. Theory and Practice and Application to Developing Countries by P. K. Ray