Chhattisgarh asks Reliance, IFFCO to clear crop insurance payments

Companies due to pay Rs 3.53 billion claims to farmers for crops damaged

Chhattisgarh government has asked Reliance and IFFCO insurance companies to clear the claims of farmers against the crop failure during kharif 2017-18.

The two insurance companies had reportedly failed to pay Rs 3.53 billion claims to farmers who had insured crops under Pradhan Mantri Fasal Bima Yojana (PMFBY) during the kharif season 2017-18. Both could not be contacted for its view on the issue.

According to state government officials, 1,294,189 farmers across the 27 districts of the state insured their crops under the scheme. Following scanty rainfall and other reasons, crops of 250,000 farmers were damaged.

More than half of state’s tehsils were declared as drought-hit. Of the 149 tehsils, the state government declared 96 tehsils across 21 districts as drought-hit.

The affected farmers had claimed Rs 3.53 billion and the state government had asked the companies to clear it at the earliest so that it could give some respite. “The insurance companies had assured that it would pay the claims to the farmers by March 31 but it failed,” state government spokesperson said.

Taking a serious note, state’s chief secretary Ajay Singh today convened a high-level meeting to review the situation. “The chief secretary has asked both the insurance companies to clear the due claims of farmers by May 10,” the spokesperson said.

The department officials have been directed to take strict legal action against the insurance companies’ officials if they failed to meet the deadline.