This paper discusses about the crop insurance and its effects on development by green India. It attempts some facts of Indian agriculture and innovation in it through crop insurance; firstly, it discusses about the Indian agriculture its nature and characteristics, secondly, it focuses on crop insurance and rural development of India finally it provide some data of agricultural production enhance in India with introduction of crop insurance. Author depends on some research paper and reports of related study. Literature surveyed by author for identification of crop insurance and its effects on Indian agriculture. The paper aims to provide some suggestion and remedies to development of rural India with better policies of crop insurance.