THE ROLE OF AGRICULTURAL INSURANCE IN ENHANCING AGRICULTURAL PRODUCTIVITY. A RESEARCH PROJECT TOPICS ON INSURANCE
Insurance is needed in order to alleviate the financial losses suffered by policy holders or the general public where the liability under policy is a contingent’s one. Therefore agricultural insurance takes care of the losses suffered by the farmers. To do this very successfully by an underwriter the compensation has to be made from contribution (premium) of all parties participating in the insurance. It is the aim of this research work therefore to find out if agricultural insurance has contributes in any meaningful way to enhancing agricultural productivity. Weather agricultural insurance has actually gained acceptance by the rural farmers. If compensation and adequately paid when losses are encountered by the farmers. And the possible areas the farmer can over with agricultural insurance policy the research work. Contains a general background discussion on the role of agricultural insurance in enhancing agricultural productivity. It went further to state the problem to be studies and why this research study was carried out, the scope and limitation of the study and finally the research questions and the definition of terms. AA number of related literature as it affects agricultural insurance were critically reviewed to provide enough background to the study. With the design of the study, the methods used in collecting relevant data it also deals with the way questionnaires were distributed and the treatment of data. The data got from the research survey were analyzed interpreted and presented. Also in this chapter was the distribution of questionnaires, characteristics of respondents and set two questionnaires for NAIC. Finally, the summary of finding, conclusion on the research and recommendations made by the researcher. It is beloved that at the end of this research work the researcher would have established of actually agricultural insurance have successfully contributed in its role of enhancing agricultural productivity.
1.1 Background of the study
Agricultural insurance as an alternative for risk management started as crop insurance in Europe more than one hundred year ago and then spread to the United States of America at the beginning of 20th century. It has then been embraced by a lot of the world like Canada, Mauritius, Zimbabwe, Philippines, Iran, Zambia and Nigeria with varying degrees of success and failures in agriculture production.
In Nigeria, there has been growing need since, 1976 to evolve a worthwhile and more permanent natural approach to risk management in agricultural and this has continued to attract the attention of the various governments. To this effect, Nigeria agricultural Insurance Corporation was established by funded largely by her with the predication of state government and organization private sector. Nigeria agricultural Insurance Corporation started as a company but became a corporation in 1993 by the virtue of decree 37 of 1993.
The introduction and formal lunching of the Nigeria agricultural insurance scheme by the president and commander in chief of the armed forces of Nigeria, president Ibrahim Babangida Badamosi on 15th December, 1987 was designated to benefit the small, medium and large scale farmer from the effect of natured hazards in consideration of a determined price called premium.
More so, Nigeria agricultural insurance scheme is to ensure the payment of appropriate compensation sufficient to keep the farmer in business after insuring any loss on their insured form.