Insurance is a mechanism for trading in risk. In today’s context, the issue of risk is of interest both for positive and normative reasons and for policies to assist farmers in making production decisions that are desirable on social grounds. A major benefit from crop insurance is said to come from of its impact on the flow of credit and especially on the targeted flow of credit towards the needy and poorer sections in agriculture. Huge potentialities lie in crop insurance in India. Government of India is targeting to increase the Insurance coverage to 50 percent of the total crop area of 194.90 million hectares, from the existing level of about 25-27 percent crop area. Gradually this area could even be increased to cent percent for de-risking Indian agriculture through crop insurance. The Pradhan Mantri Fasal Beema Yojana has been implemented with the motto to attain this target.