The recent unseasonal rain and hailstorm have compounded the woes of the farmers in Madhya Pradesh who are already reeling under the losses incurred during the last Rabi season.
Despite a high court order the Agriculture Insurance Company of India (AICI) has not processed the insurance claims of farmers till date.
The Gwalior bench of the high court, in its order on December 16, 2014, had directed the company to complete processing of the claims and disbursement within three months.
When approached, AICI regional manager Kishan Kumar, however, tried to shift the blame on the state and central governments.
Kumar told HT that the claim had been approved by the company, but it was waiting for the share of the state and central governments over the premium amount.
Also the 10% premium subsidy amount for the small and marginal farmers were to be paid by the Centre and state governments in equal share, he said.
"We have written to both the state and central governments in this respect and are waiting for their response," Kumar said.
Meanwhile, Pawan Singh Raghuvanshi lawyer of petitioner in the case said if the company failed to process the claims by the month end, a contempt petition would be filed against it in the first week of April.
The petitioner Sanjana Singh Raghuvanshi has already served a notice of contempt upon the AICI regional office.
Insurance claim not cleared
In a PIL filed in March 2014, the petitioner had sought crop insurance claims for the affected farmers under National Agriculture Insurance Scheme (NAIS) on the ground that insurance premium (@ 1.5% of sum insured) was deducted from Kisan Credit Card (KCC) loan accounts of the farmers for the Rabi season too.
Due to multiple spells of hailstorm and unseasonal rainfall in January/February 2014, Rabi crops worth Rs 13,000 crore were damaged too.
While state government paid compensation through a central package to the affected farmers, but the insurance claim was not cleared. The AICI has already paid Rs 2167.43 crore to the farmers as insurance claim for the Kharif crop losses in 2013.