‘Private insurance firms are cheating farmers’

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Opposing the cheating of private companies like Chola Mandalam and Royal Sundaram for covering crop insurance and their engagement by the Government under the Pradhan Mantri Fasal Bima Yojana, the farmers of Balangir district would stage demonstration before the collectorate from January 12 to 16. This was announced by farmer leader Santanu Naik, at a Press conference here on Friday evening.

The insurance company, Chola Mandalam, violated the guidelines and in collusion with Revenue Inspector, VLW and other district officials who fabricated reports on crop loss, cheated the victim farmers of their insurance money, alleged Naik. Even as the paddy yield in Binekela GP was 4.32quintal, it was shown as 29.30 quintal per hectare in the report sent to the Government by the local RI, resulting in farmers not getting crop insurance, Naik alleged further.

Farmers in 50 gram panchayats have been deprived of crop insurance. Even though they have insured their crop paying premium, in cases where the insurance amount was released, it was much less, Naik told.

“Cooperation Department Secretary Ranjana Chopra wrote a letter on September 9 last to Chola Mandalam Insurance, Chennai, asking why the applications of around 10,000 loanee farmers of Titilagarh sub division were rejected and premium amount was returned to their account. The letter also mentions that the ‘approach taken by the company’ is completely contrary to guidelines of PMFBY, which puts emphasis on coverage of non-loanee farmers,” said Naik.

Due to the faulty policy of the State Government and engagement of private insurance companies, the farmers are not getting their insurance money, Naik told, adding that private companies like ICICI, Lombard and IFFCO Tokyo which had insured their crops under Weather Based Crop Insurance Scheme,(WBCIS) have not paid compensation amount for the year 2011-12 Kharif season. Naik also pointed out the poor quality of materials used in construction of embankment in the left side of Tel river near Belgaon, which was washed out causing immense damage in 500 acres of standing crop of farmers.

He said so far neither the farmers were given compensation nor any action was taken against the contractor.

Daily Pioneer
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