The Permanent lok Adalat (PlA) of Kalahandi, after hearing the petitions of the farmers of Nuapada on non-payment of crop insurance to them by Agricultural Insurance Company of India (AICI), has fixed the responsibility of payment of insurance dues with Utkal Gramya Bank (UGB).
Due to the mistake of the UGB, the insurance company released only 20.49 per cent of the claim amount which deprived about 400 farmers of their dues amounting to over `82 lakh. Farmers of Bargaon Panchayat of Khariar block had deposited premium to insure their paddy crop under the National Agriculture Insurance Programme (NAIP) at Bargaon branch of the UGB. While forwarding the claim applications to the AICI, UGB regional manager committed a mistake and claimed only 20.49 per cent. Accordingly the company released the amount.
“We did not accept the payment as it was less than our actual claim and filed petitions in the PlA claiming 100 per cent dues,” said Sanjay Tiwari, a farmer of Bendrabahal village. After three hearings, the PlA on November 12 decided that the responsibility of paying the dues lies with the UGB. “Now, either the bank will pay full claim to the farmers and reimburse it after the release of the funds by the AIC or ask the petitioners to wait for the decision of the AIC,” said PlA Chairman Gobinda Chandra Panigrahi.
Contesting this, UGB regional manager said that the UGB does not have any fund of it’s own to compensate such a huge amount. “You cannot evade the onus, if the AIC disagrees to release the rest of the claim, you have to pay it,” said the PlA members. “The need of the time is to take coercive measure. The bank should discuss the matter with its higher authorities and take a decision immediately,” they added.
The Adalat finally gave one month time to the UGB to pursue with the AIC for early release of the claim amount. In case of delay or denial, the UGB will have to pay the amount to the farmers. “After considering all aspects, the points raised by the parties and going through the documents, we have reached to the consensus for adjudication,” said Panigrahi. AIC regional manager B Saha, RM of UGB KP Rout, Advance Manager CS Purohit and representative of State Cooperative Department were also present during the proceeding.