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    Lockdown slows down claim settlements of crop insurance scheme

    Synopsis

    “Claim settlement progress has been impressive in Himachal Pradesh, Uttar Pradesh and Maharashtra, where almost all the claims have been settled. But in states like Jharkhand, Karnataka and Madhya Pradesh, there is zero disbursement,” a government official said.

    Reuters
    Claims of about Rs 14,000 crore have been reported out of which only Rs 9,000 crore have been disbursed so far.
    New Delhi: The lockdown has slowed down claim settlements of crop insurance scheme, with only 64% of losses in last year’s kharif season cleared so far, as many states have made tardy progress, officials said.

    “Claim settlement progress has been impressive in Himachal Pradesh, Uttar Pradesh and Maharashtra, where almost all the claims have been settled. But in states like Jharkhand, Karnataka and Madhya Pradesh, there is zero disbursement,” a government official said.

    Claims of about Rs 14,000 crore have been reported out of which only Rs 9,000 crore have been disbursed so far.

    He said the states have not been able to compile data after assessing the damages. The slow process has hit the farmers, who have already been suffering due to Covid-19 disruptions.

    “As per the guidelines, farmers should receive their claims for winter crops till July first week. But the settlement process is yet to be initiated. It’s been delayed by at least two months,” said a senior agriculture department official.

    He said that the broad estimations for Rabi claims would be around Rs 5,000 crore but states are yet to send yield reports after assessing damages.

    “We are in regular touch with states and insurers for expediting the claim settlement. As per guidelines, claims should be settled within three months of reporting of claims. But it’s more than 8 months from the Kharif harvest,” the official said.
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