Insurance firms reap Rs 15,000-cr profit, fail to pay farmers Rs 2,800 cr

Vishav Bharti

Tribune News Service

Chandigarh, February 17

Companies empanelled under the Pradhan Mantri Fasal Bima Yojana made a quick profit of over Rs 15,000 crore in two years, but failed to pay claims worth over Rs 2,800 crore to farmers in the same period.

As per information obtained under the RTI from the Agricultural and Farmers’ Welfare Department, the crop loss incurred by 3.01 crore farmers during the fiscal 2016-17 was an estimated Rs 16,448 crore. But the companies approved a payment of Rs 16,242 crore and finally ended up paying Rs 15,902 crore — Rs 546 crore less than the estimated loss.

Similarly, in the financial year 2017-18, the crop loss by over 1.25 crore farmers was estimated at Rs 17,992 crore, of which the companies approved claims worth Rs 16,611 crore but paid only Rs 15,710 crore till November last — Rs 2,300 crore less than the estimated loss. 

Ropar-based RTI activist Dinesh Chadha claimed the figures clearly showed the scheme was “of the insurance companies, by the companies and for the companies”.

He pointed out that the companies, despite the big profits, had failed to establish dispute settlement forums at the district level. “Maharashtra is one example. Farmers don’t know whom to approach for compensation.”

The yojana was launched in 2016 to supposedly help the farmers. In all, 18 companies were awarded contracts under the scheme — five in the public sector and 13 in the private sector. The companies earned a profit of Rs 15,795 crore in all, of which the share of private companies was Rs 8,147 crore.