In Agriculture Support of insurance is a relevant mechanism to manage risks to help farmers to avoid financial losses

Farmers are able to receive compensation for any kind of loss they incur during the crop- Growing and harvesting process. For instance, agricultural disease, lightning-caused crop fires, cyclones, floods, and hail and weather-related crop loss are all covered. In addition to these three main crop insurance programs, state governments are putting in place other programs to give farmers financial support in the event that they suffer losses for a variety of causes. The Indian government sponsors a crop insurance program called Pradhan Mantri Fasal Bima Yojana. In 2016, this policy was introduced. Its goal is to give farmers financial support in the event that their crops are damaged or lost. In 2017-18, 4.99 million farmers were insured with 87 per cent coverage for Kharif 2017. In the first three seasons, over Rs 33,000 crore was paid out of Rs 7,272 crore to farmers. Criticism of insurance companies saw occasional profits, many settlements were made in disaster areas.