In Haryana, crop insurance payments to farmers drop by over 90% in one year — from Rs 2496.89 crore in 2022-23 to Rs 224.43 in 2023-24

The Union minister also said the government had taken several steps “to ensure transparent calculation of the crop claims and the subsequent payment to the farmers”.

Expressing “serious concern” over the massive drop of over 90 per cent in the payment of agricultural insurance claims to farmers in one year, Hooda said that this could “create a serious financial crisis for the farmers and weaken their trust in the schemes”.

Hooda alleged, “The PMFBY has become a scheme for filling the coffers of private insurance companies by looting the hard-earned money of the farmers.”

Referring to the Union minister’s statement, Hooda said the payment of claims made to farmers across the country declined from Rs 18,211.73 crore in 2022-23 to Rs 15,504.87 crore in 2023-24.

Asserting that this decline is extremely worrying in many states, Deepender pointed out, “Apart from Haryana, the payment of agricultural insurance claims dropped in other states, too. In Rajasthan, it reduced from Rs 4,141.98 crore in 2022-23 to Rs 2,066.02 crore in 2023-24; in Odisha, Rs 568.01 crore in 2022-23 to Rs 209.03 crore in 2023-24; and in Madhya Pradesh, Rs 1,027.48 crore in 2022-23 to Rs 565.28 crore in 2023-24.”

Payment of crop insurance claims for Haryana farmers

Deepender claimed there was no representation of the affected farmers in local committees which calculated the crop loss.

“The government and insurance companies are acting arbitrarily in the claim settlement and the farmers are bearing the brunt. Despite insurance companies taking premiums from the farmers in Haryana, the farmers have to run from pillar to post when it comes to giving compensation,” the Congress MP alleged.

Claiming that the farmers are “losing faith” in the PMFBY, Hooda said, “The reasons cited for pending insurance claims are delays in grants from state governments, discrepancies in crop production data and other procedural hurdles, which need to be resolved immediately, clearing the deck for the affected farmers to get their dues on time.”

However, Haryana Agriculture and Farmers Welfare Minister Shyam Singh Rana said the PMFBY played a crucial role in providing financial security to the farmers, particularly during adverse climatic conditions.

“In 2022-23, insurance companies collected a total premium of Rs 360.62 crore from farmers in Haryana. However, due to extensive crop damage caused by natural calamities, claims amounting to Rs 2,503.60 crore were disbursed to affected farmers, highlighting substantial benefits provided under the scheme, with the claim significantly exceeding the premium collected from the farmers. However, in 2023-24, the insurance companies collected Rs 182.67 crore in premiums from farmers, and claims amounting to Rs 237.82 crore disbursed to farmers,” Rana said.

The minister said, “Haryana is one of the few states where the claim disbursements exceed the premium collected. Besides, the state government is committed to ensuring that farmers receive adequate compensation for their losses.”

Denying Hooda’s claim that there was no representation of the affected farmers in local committees calculating crop loss, the minister said, “If crops are damaged due to natural calamities such as inundation, hailstorms, or cloudbursts, a comprehensive survey is conducted at the individual field level by the Joint Loss Assessment Committee comprising the Block Agriculture Officer, the loss assessor from the insurance company, and affected farmer or their representatives.”

Pagdi Sambhal Jatta Kisan Sangharsh Samiti president Mandeep Nathwan said, “The government should take the job of crop insurance instead of handing it over to private companies. Only a government-run company can guard the farmers’ interests because the farmers in Haryana don’t have good experience with private insurance companies.”