Agri Insurance

Agri Insurance News: Distress of Farmers Compound by Complex Insurance Policies

Jaipur: The complex insurance policies that are meant to provide relief to them are proving to be a major hindrance in getting them compensation. Affected farmers due to crop damage have no respite in the near future.

Farmers after failed Kharif crop are looking for instant relief from the government. However, for 21 districts, which are under weather based insurance scheme (WBIS), there's no provision to compensate farmers for actual crop damage.

Agriculture minister Prabhulal Saini said "The relief based on the insurance is limited to fluctuations in weather and is not subject to crop damage. The provisions are such that production of a farmer is not secure. But if there is any change in the weather even if production is ok, farmers will still be compensated for it. First, we will get figures of total crop sown, which the revenue department is likely to submit before October 25. After that they will ascertain how much the real damage has been. Based on that, we will issue the compensation amount."

Saini added that all damages would be tabulated only after revenue department submits its Girdawari report to the state government. This will further delay the disbursement of relief amount.

Saini maintained that the government also tried to resume the national agriculture insurance scheme (NAIS) operated by the Agriculture Insurance Company of India (AIC). It was functional in the state from 2003 to 2010. During that period, farmers in Rajasthan received a claim of about Rs 2,620.77 crore and were charged premium of only Rs 450 crore. However, it was turned down by the finance department asserting that it will put a lot of burden on the exchequer.