Agriculture, like any other enterprise is risk-prone. Being primarily dependent on nature, it is comparatively more prone to risks at production stage and, is also exposed post-the harvest due to price variations. The demand of the time is to convert agriculture as a yieldproducing enterprise, which securities that a package of risk management instruments is positioned. The risk management is real when it can help in minimizing the production and income losses.Indian agriculture dependent on rainy season which is always elastic. It leads to working risk in farming of different crops. Natural disasters may beeffect on the yield from agriculture sector. To cover the risk which may arise in future, there is need to some provision and crop insurance is only apparatus available to precaution against production risk in agriculture. For satisfying this need the Government of India has made trials& efforts by introducing various schemes of crop insurance. National Agricultural Insurance Scheme has been launched by National Agricultural Insurance Scheme Corporation of India in 1999-2000.