Almost 15% of motor and health insurance claims get rejected on an average by insurance companies. (Representational Image) 
Odisha

Odisha seeks Centre’s help for settling crop insurance claims

Cooperation Minister has sought personal intervention of Union Minister for Agriculture and Farmers’ Empowerment for early settlement of claims of farmers under Pradhan Mantri Fasal Bima Yojana.

Express News Service

BHUBANESWAR: As the insurance companies are not willing to pay crop insurance claims of farmers for kharif crops 2021 due to some shortcomings, the State government has taken up the issue with the Centre. Cooperation Minister Atanu Sabyasachi Nayak has sought personal intervention of Union Minister for Agriculture and Farmers’ Empowerment Narendra Singh Tomar for early settlement of claims of farmers under Pradhan Mantri Fasal Bima Yojana (PMFBY).

In a letter to Tomar, Nayak said kharif season of 2021 was fraught by many natural calamities affecting several crops, especially paddy which is the major crop of the State and accounts for nearly 98 per cent of the area insured. Enclosing a copy of the number of claims settled, Nayak said, the estimated claims for the said season is about Rs 1,364 crore, out of which claims to the tune of `748 crore have been settled so far.

“It has come to the notice of the State government that in many cases the notified insurance companies have raised objections regarding the conduct of crop cutting experiments (CCEs) and held up the claims. The objections raised by the insurance companies have been duly complied yet the claims have not been settled which has led to farmers unrest in many places,” the letter said.

He apprehended that non-settlement of claims is likely to affect the enrolment process for kharif 2022, which is underway.“I would request for your personal attention to the matter and issue of suitable directive by your Ministry to the insurance companies for settlement of claims at the earliest for safeguarding the interest of the farmers,” Nayak said.

Raising the issue during zero hour in Lok Sabha on July 21, BJP MP from Bargarh Suresh Pujari had urged the Centre to blacklist HDFC Ergo Insurance Company for rejection of claims of a large number of farmers and non-acceptance of crop cutting reports. Chief Secretary Suresh Mahapatra had directed the companies to release the insurance claims which have been settled within a couple of weeks.

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