State looks to Centre as crop insurance firms deny advance to farmers

The issue of crop insurance companies denying claims to farmers was discussed in the state cabinet meeting heldon Thursday.

As per the rules for the farm insurance scheme, in case of crop loss due to heavy or lack of rainfall, the companies should pay 25% of the insurance amount as an advance to the insurance holder farmer.

According to sources, district collectors from 30 districts have written to insurance companies asking them to pay the 25 per cent advance amount to farmers who have lost their crops due to rain shortfall in the Kharif season.

“Of this, companies have taken objection to claims in 21 districts for various reasons and claims in only nine districts have gone without objections. The issue was discussed in the state cabinet meeting and    ministers across party lines were unanimous that it is set to create trouble for the government in near future,” a minister who attended the cabinet meeting said.

One of the criteria for drought insurance includes a dry spell of 21 consecutive days. “Many times a very small amount of rainfall is experienced. That rainfall does not help the crop but companies use it to deny the dry spell,” said an official from the agriculture department.

The minister said that the state government will have no option but to approach the Centre, seeking assistance in dealing with the companies.

The state government is claiming that over 1.7 crore farmers have been given crop insurance at just Re1.

“It will be a challenge to satisfy all those insurance holders now,” he said.