1 lakh Karnataka farmers' insurance claims stuck

Months after devastating floods damaged 9.7 lakh hectares of agriculture and horticulture crops, more than a lakh farmers have been left in the lurch as insurance claims for lost crops have been held up due to a dispute over the premium.

Authorities concede that issues with Pradhan Mantri Fasal Bhima Yojana (PMFBY) have delayed the release of insurance claims, adding that claims will be released in phases. During such extreme cases, interim claims should have been released, they said.

Though six lakh farmers were affected by floods, only one-fourth of them — around 1.5 lakh — are covered under the scheme.

Officials in the Agriculture Department, under condition of anonymity, admit that there were problems with the scheme and farmers affected by floods could face some delays in insurance claims, as the claims were yet to be calculated. “Insurance companies prior to releasing claims put out several queries for the farmers, which is one of the major causes for the delay. Moreover, there is an awareness issue regarding insurance claims and premiums among the farming community,” an official said. Farmer organisations have pointed to skewed and selective distribution of insurance claims and decided to approach the consumer court with their grievances against insurance companies.

Viresh Sobaradhmath, president of Karnataka Rait Sene, told DH that despite paying premiums under PMFBY for crops, there were disparities in the claims sanctioned by the companies. “This has added to the woes of the farming community in flood-affected regions,” he said.

According to the scheme’s guidelines, premium for one acre of tur dal is costlier than for an acre of maize. If a farmer suffers losses for both the crops during flood or drought, insurance companies release claims only of the lower value, Sobaradhmath said. “We have decided to file a writ petition in the consumer court against this disparity,” he said.

Ganganna Veereshnavar, a farmer from Dharwad, said that apart from these issues, many farmers were not even sanctioned insurance as they lacked awareness. For instance, there are cases of flood or drought affected villages with around 1,600-1,800 beneficiary accounts under the scheme, of which only a little more than half have their insurance claims sanctioned, he said.

B Y Srinivas, director, Agriculture Department, said that they were aware of the complaints raised by farmers. “All insurance claims will be released in the next three to four months in a phased manner,” he said.

Software integration to debit interim relief to flood-affected farmers under the scheme has also affected farmers, the source added.