The CAG on Friday slammed the Government for poor implementation of crop insurance schemes in 2011-16, saying funds to the tune of Rs 3,622.79 crore were released to private insurers without verification. Both the Central and State Government had incurred an expenditure of Rs 32,606.65 crore towards payment of premium subsidy and claim liabilities in the said period. This amount was channelised via state-owned Agriculture Insurance Company (AIC) to private companies, it said.
The CAG report examined the crop insurance schemes -- NAIS, MNAIS and Weather Based Crop Insurance Scheme (WBCIS) implemented during 2011-12 through 2015-16. These schemes, however, now have been replaced with new Pradhan Mantri Fasal Bima Yojan (PMFBY) from 2016 kharif season.
"During 2011-16, AIC had released Rs 36,222.79 crore as premium subsidy to 10 private insurance companies without compliance with any of the guidelines...," the CAG said.
According to the CAG report, claims amounting Rs 7,010 crore (under NAIS), Rs 332.45 crore (MNAIS) and Rs 999.28 crore (WBCIS) were pending as on August 2016 due to non- receipt of premium share of State Governments, litigations, verification of claims by States, reconciliation and booking errors, among others. There was also lack of awareness as 67 per cent farmers surveyed during the audit were not aware of the schemes. There was no proper grievance redressal system and monitoring mechanism for speedy settlement of farmers' complaints at the Central or State Government level, it added.
"Even though huge funds under the schemes were provided to private companies, there was no provision for audit by the CAG to ensure proper utilisation of funds...," it said.