Oriental Insurance roped in after AICL opts out

The State government has roped in Oriental Insurance Company for crop insurance in the district for three years as the Agriculture Insurance Company of India has opted out after completing its three-year contract period.

Collector K. Veera Raghava Rao disclosed the information at the monthly farmers’ grievance redressal meeting here on Friday when farmers urged the district administration to initiate steps for early payment of crop insurance for 2018-19 and alleged that AICL found one reason or the other to reject their claims for full payment.

After the farmers expressed lack of faith in the insurance company, Mr. Rao said AICL had opted out from the district and steps were being taken to secure crop insurance from the company for 2018-19.

Farmers said they had a tough time getting full insurance after AICL offered only 25% of the total insured money to them in more than 100 revenue villages in the last two years. For 2018-19, AICL reportedly informed the district administration that farmers in 120 revenue villages would be given only 25% payment.

The offer, however, was not agreeable to the district administration, which informed the insurance company that farmers in all 400 revenue villages suffered 100% crop loss during 2018-19 due to drought and they should be fully compensated. AICL paid a total crop insurance of ₹529.06 crore to 1.21 lakh farmers in 2016-17 and ₹469.99 crore to 1.44 lakh farmers during 2017-18, the Collector said.

During 2018-19, a total of 1.07 lakh farmers insured their crops cultivated in 1.19 lakh hectares. The Oriental Insurance Company would receive premium for crop insurance for 2019-2020 after farmers began cultivation later this year.

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