CAG report tabled on Parliament last week pointed out that about 67% of the 6,000 farmers surveyed had absolutely no idea about government-run crop insurance schemes.
The CAG report examined the crop insurance schemes -- NAIS, MNAIS and Weather Based Crop Insurance Scheme (WBCIS) implemented during 2011-12 through 2015-16. Now these schemes have been replaced with much publicized Pradhan Mantri Fasal Bima Yojan (PMFBY) from 2016 kharif season.
The CAG also pointed out that the state-owned Agricultural Insurance Company of India failed to exercise due diligence in verification of claims by private insurance companies before releasing funds.
According to the report, there were discrepancies in the data relating to area sown and area insured. "The integrity of the data provided by the state governments in this respect and used by AIC was not ensured." "Even though huge funds under the schemes were provided to private companies, there was no provision for audit by the CAG to ensure proper utilization of funds...," it said.
The CAG report also found instances of delayed release of funds by state governments. "Such delays impacted the release of insurance compensation to affected farmers, defeating the objective of providing timely financial assistance to the farming community," the report added.