More than 200 farming households have enrolled in an Index Based Flood Insurance (IBFI) product in Bihar, India. IBFI, which use satellite technology and modelling, was developed with the help of researchers from the International Water Management Institute (IWMI) with WLE and the CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS).
Payment to registered households will be directly through the bank in case of major flooding. It is estimated the total sum insured will be approximate 5 million INR, or about 78,000USD.
IBFI has already been filed with Insurance Regulatory and Development Authority (IRDA) upon with Agriculture Insurance Company of India Ltd (AICI) insured the farmers.
A massive campaign was organized by AICI for the farmers to encourage active participation and enrollment, with special efforts made by Anoj Kumar of IWMI.
IWMI will regularly monitor the water levels and satellite images in order to better coordinate with AICI in the case of claim settlements.
Similar activities are being conducted in Bangladesh and will be rolled out soon.