This study reports on an experiment involving an innovative price insurance product that was offered to agricultural households in India to compliment index-based rainfall insurance introduced in 2009, additionally a randomized intervention of financial literacy and insurance education was done with the sample households. The innovative field experiment provided some of the first evidence that financial education can affect consumer decision‐making. The financial literacy training had a positive and significant effect on rainfall insurance adoption. However, further field work indicated possibilities of conflict between willingness to pay for rainfall insurance and other risk management product. Possible linkages of inequality with take-up and inequalities because of take-up also emerge. The research aims at addressing the complementarities between two categories of agricultural insurance and explores the linkages between microinsurance and inequality.
