In the Mundpadar Branch of the Utkal Grameen Bank (UGB), 414 non-loanee farmers of Mundpadar gram panchayat in Balangir district had deposited their crop insurance premium and declaration forms for coverage under the National Agriculture Insurance Scheme (NAIS).
The premium amount of farmers along with the declaration forms were submitted to the Agriculture Insurance Company of India ltd after the cutoff date for Kharif 2011 by the UGB officials. Due to late submission, the premium amounts and declaration forms were not accepted by the insurance company, as a result of which the insured farmers were deprived of receiving their genuine claim compensations.
As per the decision of the State Cooperation Department, the UGB has made the payment of the crop insurance claims of 392 eligible non-loanee farmers of Mundpadar GP amounting to Rs 60,76,067 at the rate of 83.54 per cent of the sum insured as per the loss calculation made by the Agriculture Insurance Company of India for the GP.
This payment has been made by the bank without any share of the State and Central Governments.