CPI MP urges PM Modi to look into 'irregularities' in farm insurance scheme

CPI MP Binoy Viswam has written to PM Narendra Modi and urged him to look into the 'irregularities' in the govt's flagship farm insurance scheme, alleging that the scheme has become a 'bonanza'

CPI MP Binoy Viswam has written to Prime Minister Narendra Modi and urged him to look into the "irregularities" in the government's flagship farm insurance scheme, alleging that the scheme has become a "bonanza" for private insurers.

In the letter to Prime Minister Modi, Viswam has said that the Pradhan Mantri Fasal Bima Yojana (PMFBY) launched in 2016 was initiated to provide insurance protection to farmers against crop losses due to natural calamities.

"But in recent years, there have been several reports of irregularities of grave nature committed by private insurance companies in settling insurance claims with farmers. This leads to the conversion of the scheme into a bonanza by the private companies to reap huge profits. Naturally, the farmers are denied their rightful protection under the scheme," he said.

The Communist Party of India (CPI) MP further said that over the past five years, both the Central government and state governments have contributed about Rs 1.265 lakh crore to the scheme to benefit the farmers. It is shocking that only Rs 87,320 crore, as per the available reports, has been paid to the farmers, he said.

"This staggering data throws light on handling of the PMFBY's funds. While public sector insurance companies settled 90 per cent of farmers' claims, private sector companies such as Bharti AXA, Reliance General Insurance and Future General India Insurance pocketed enormous profits of nearly Rs 39,201 crore without paying farmers their rightful dues. This is a scam of wider magnitude heralded by the corporates," Viswam alleged.

He also said that the Union Education Minister, Dharmendra Pradhan, has already written to Union Minister of Agriculture and Farmers' Welfare Narendra Singh Tomar regarding the same issue in Odisha.

"Given these circumstances, I urge you to look into this grievous matter and initiate a CAG audit on how farmers are being deprived by the corporates. I also request that all those private companies that have defaulted on insurance payments to the farmers be blacklisted.

"I further request that the Pradhan Mantri Fasal Bima Yojana be entrusted only with the public insurance companies," he said.