Insurance companies speed up payment on crop loss, most of the claims settled

After repeated reminders from the Agriculture Commissioner’s office, insurance companies have settled most of the crop loss claims in the state. So far, 44.26 lakh farmers of the state have received Rs 2,501.66 crore as compensation for crop loss in the first season.

Despite the timely onset of monsoon, farmers in the state faced heavy rains in some areas, damaging their crops. Similarly, extremely heavy rains during the withdrawal phase of monsoon had caused crop losses to farmers in many areas. Farmers in Marathwada, Konkan, Vidarbha and North Maharashtra region suffered the most. A total of 47.65 lakh farmers had made claims worth Rs 2,512.81 crore in the state.

While the claims were submitted on time, the insurance companies delayed in settling the same. Farmers’ organizations like Kisan Sabha had organized several agitations for speedy settlement of claims.

Agriculture Commissioner Dheeraj Kumar had issued repeated notices to the insurance companies and warned of action if the claims were not settled soon.

Insurance companies had cited delay in joint survey and non-payment of state government’s share as reasons for late settlement of claims. In the past few seasons, the claims of crop loss have seen a rise in view of the frequent incidents of unseasonal rains. The insurers have claimed that the business was a loss-making deal for them. However, there is a growing demand for a relook at the entire scheme as insurance companies posted record profits in a good season.

According to the latest data of 37.35 lakh farmers who have claimed crop loss, 33.99 lakh farmers have received payment. Out of the total claim amount of Rs 2,278.52 crore, Rs 2082.40 crore has been paid to the farmers. Agriculture Commissionerate officials said the three companies now have huge pending claims and they are expected to get clearances in the next few days.

Around 11.30 lakh farmers had filed claims for mid-season adversity (unseasonal rains in the middle of the season mostly in September-October). The total claims filed were around Rs 430.41 crore. 10.27 lakh farmers in this category have received Rs 419.26 crore as compensation.