Sasmit Patra raises Farmer’s issue on non-settlement of claims under PMFBY

Claims amounting to more than Rs 1000 crores are not settled by insurance companies under PMFBY, said BJD MP Sasmit Patra.


TNI Bureau:   Spokesperson of the Biju Janata Dal (BJD), Sasmit Patra on Monday said lakhs of farmers in Odisha are suffering due to non-settlement of claims under the Pradhan Mantri Fasal BimaYojana (PMFBY).

Claims amounting to more than Rs 1000 crores are not settled by insurance companies under PMFBY, said BJD MP Sasmit Patra.

➡️ Sasmit Patra said that lakhs of Odisha farmers are affected by the PMFBY across Bargarh, Sambalpur, Sonepur, Deogarh, Bolangir, Nuapada and Kalahandi districts of Odisha.

➡️ Over the past five years, Rs 1.26 lakh crores have been paid as crop insurance premium across India and Rs 87,320 crore was received as claims. The insurance companies made Rs. 40,000 crores of PMFBY money, affecting the interests of the farmers, he said.

➡️ In Odisha, the Odisha Government has paid Rs. 3250.48 crores so far and Odisha farmers have paid Rs. 1009.84 crores to the insurance companies so far. Adding the Centre’s share, the total payment is Rs. 7510.8 crores till Kharif 2021, the BJD spokesperson said.

➡️ Till Kharif 2020, the total premium paid to insurance companies was Rs. 6163.28 crores while the payment by the insurance companies to claims of farmers was Rs. 5098.64 crores, Patra said.

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➡️ Thus, the insurance companies profited to an amount of Rs. 1064.64 crores, which is 17.27% of the total premium paid, he informed.

➡️ In Odisha between 2018-2020, farmers filed crop insurance claims of Rs. 2090 crores but insurance companies paid only 50% of those claims amounting to Rs. 1026 crores.

➡️ Six states namely Andhra Pradesh, Bihar, Gujarat, Jharkhand, Telangana and West Bengal have opted out of PMFBY and total area insured has also gone down by 73 lakh hectares (from 567 lakh hectare in 2016-17 to 495 lakh hectare in 2019-20), Patra stated.

➡️ “It is high time that the Union Government rectifies these issues and helps the farmers in times of distress. It should use new technological innovations such as drones to clear assessment of claims expeditiously and allow only Government insurance companies to undertake PMFBY in order to safeguard the interests of the farmers,” said Patra.

➡️ He further said that BJD MPs have repeatedly taken this up in both Houses of Parliament. We will continue to fight for our farmers till their claims are settled.

Total Farmer’s Share = Rs. 1009.84 Crores
Total State Share = Rs. 3250.48 Crores
Total Centre Share = Rs. 3250.48 Crores
Total Premium Paid = Rs. 7510.8 Crores
Total Claims Paid = Rs. 5098.64 Crores (Till Kharif 2020)
Total Premium Paid = Rs. 6163.28 Crores (Till Kharif 2020)

Total Amount that Insurance Companies made= Rs. 1064.64 Crores (17.27% of total Premium Paid)

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