New Delhi, March 13 (NationPress) Rajeev Shukla, a member of the Congress in the Rajya Sabha, highlighted concerns in the House regarding the crop insurance scheme affecting farmers. He asserted that insurance companies are failing to offer adequate and complete compensation to farmers.

This issue is profound, impacting millions of agricultural workers across the country.

Shukla cited instances from various states, pinpointing significant shortcomings in the insurance program. For example, in Maharashtra, after crop destruction, some farmers received as little as Rs 21, while others got Rs 8 or even just Rs 3.

He referred to the Prime Minister’s Crop Insurance Scheme, which was designed to offer farmers protection against natural disasters like droughts, floods, hailstorms, and pests. By paying a nominal premium, farmers would receive financial assistance during challenging times, ensuring a steady income.

In the Bareilly district of Uttar Pradesh, Shukla reported that floods had devastated paddy crops. Although farmers applied for insurance, the compensation amounts were strikingly low—Rs 3.76 in some cases and Rs 2.62 in others. He questioned how a farmer could afford to replant crops or even buy diesel and pesticides with such minimal payments, sarcastically suggesting that they would need to showcase these small sums as proof of their insurance.

Shukla remarked that insurance is intended to provide essential support during crises. However, the current situation leaves farmers unable to even recharge their mobile phones with the compensation they receive.

Moreover, he indicated that the challenges extend beyond the compensation amounts. In many regions, the verification of crop damage doesn't happen timely. Officials often arrive only after the crops have been destroyed, when it's time to re-sow. There are frequent issues with the online portal and server failures, causing farmers to struggle for their compensation without success. Furthermore, under the 'area approach', averages are calculated, meaning even if a farmer's crops are entirely ruined, they are informed that the overall area is considered normal.

Shukla pointed out that farmers contribute merely 1.5 to 2 percent of the premiums, while the government covers the rest—essentially taxpayer money. Consequently, insurance companies collect vast sums in premiums. In favorable years, claims are minimal, yielding profits for these companies. Yet, when farmers seek compensation, they receive paltry amounts like Rs 3 or Rs 5. In some cases, premiums are even deducted from farmers’ accounts without adequate information.

He concluded that this model, where farmers and the government bear the risks while profits go elsewhere, is unjust.

Shukla called on the government to establish clear timelines for the settlement and payment of claims, ensure prompt and transparent assessments of crop damage, conduct evaluations at the actual farm level rather than relying on the area approach, and hold insurance companies accountable so that farmers receive fair and sufficient compensation.