Hybrid Index Insurance (HII) is a combination of Weather Index Insurance (WII) and Area Yield Index Insurance (AYII). It offers comprehensive coverage for both weather-related and non-weather-related perils, leveraging the strengths of both WII and AYII.

Weather Index Insurance (WII)

Weather Index Insurance helps mitigate uncertainties resulting from changing weather conditions by providing protection against weather-related risks.

• Payouts are indexed based on weather thresholds or extremes specific to a location.

• Parameters may include:

  • Insolation (sunlight),

  • Precipitation (rainfall),

  • Humidity,

  • Wind speed, etc.

• When weather data shows a variation beyond the standard deviation or expected norm, a payout is automatically triggered.

Area Yield Index Insurance (AYII)

Area Yield Insurance covers yield-related risks by comparing actual yields to the average yields expected within a specific ecological zone.

• Payouts are indexed against the expected average yield of that region.

• If the actual farm yield falls below the standard average yield for that zone,
  a payout is triggered proportionate to the shortfall.