The Government, however, wanted to extend the life insurance scheme to all farmers who were given Rythu Bandhu cheques and sanctioned funds accordingly. The age norm has resulted in 14 lakh farmers losing out on the benefit.
The state Government has distributed Rythu Bandhu cheques to extend Rs.4,000 per acre financial assistance for the kharif crop in May and June. The cheques were distributed to 48.77 lakh farmers. The Government wanted to extend free insurance schemes to all these farmers and had asked the agriculture department to take up a door-to-door campaign and enroll farmers for the scheme.
Officials have approached 47.31 lakh farmers so far and found that only 27,00,416 were eligible as per norms.
Due to the age restriction, 14.48 lakh farmers became ineligible. Another two lakh farmers have refused to take the insurance cover due to lack of awareness
Over 14 lakh farmers across the state became ineligible for the Telangana state government's free Rs. 5 lakh life insurance cover even as the Government started distribution of the LIC insurance bonds to farmers.
The Government paid over Rs.600 crore to LIC towards premium on behalf of the farmers at Rs.2,271 for each farmer. In case of the death of the farmer, the LIC would pay compensation of Rs.5 lakh to the nominee of the farmer within 10 days.
According to LIC norms, farmers in the age group of 18 to 59 years are eligible for life insurance due to which 14 lakh farmers, who are aged above 59 years, lost the benefit.
The LIC has so far printed 20.80 lakh insurance bond certificates and handed them over to the agriculture department. The department has dispatched them district-wise and started distribution.
The Government has set a target to complete distribution of the bonds by August 14 for distribution of Bonds in their respective districts.