A 64-year-old farmer from Honagunta village in Chittapur taluk of Kalaburagi district won a legal battle against a private insurance company after seven years of litigation, and he now has an insurance claim under the Pradhan Mantri Fasal Bima Yojana (PMFBY) for $4,40,056 for the loss of his kharif crop in 2016.
Eranna Pasar paid a premium of 6,637.08 to Universal Sompo General Insurance Company Limited to cover the red gram crop he had planted on 20 acres of land.
According to the insurance company's documentation, his insured red gram crop on 20 acres had a sum assured worth of 3,31,854. The insurance company conducted a crop loss study on the farmer's 20 acres of land and reported that only 10% of the red gram crop was damaged by heavy rains. As a result, the farmer only received $2,158 through NEFT.
In 2018, a distressed farmer went to the Permanent Lok Adalat in Kalaburagi and demanded that the insurance company pay him 3,31,854 along with 12% annual interest, 1,00,000 for mental stress and suffering, and 15,000 as legal fees.
On behalf of the farmer petitioner, Senior advocate Vaijnath Zhalki argued stating that the private insurance company arbitrarily refused to pay the insurance amount. The issue was heard on merits for deciding the dispute under the existing law.
During the proceedings, Mr. Zhalki presented a certificate issued by the village accountant, certifying the loss of red gram crops on Eranna Pasar's 20-acre land in 2017. The certificate served as evidence for the petitioner's claim, requesting the insurance company to provide the compensation entitled under the policy.
Surprisingly, even after four years, the insurance company failed to produce any records of the conducted survey, which allegedly determined a mere 10% crop loss. The court took note of the insurance company's disregard for legal notices and their neglect in settling the legitimate claim of the farmer.
Ultimately, on January 3, 2022, the Permanent Lok Adalat, chaired by S.M. Patil and consisting of Seema A. Pappu and S.G. Puranikmath, ordered Universal Sompo General Insurance Company Limited to pay ₹3,29,696, along with 6% interest per year from the date of the petition until the realization of the crop loss, and an additional ₹5,000 as the cost of the proceedings.
However, the adalat did not grant the petitioner's claim for ₹1 lakh for the mental agony endured. Unfortunately, it took more than a year for Universal Sompo General Insurance Company to issue a cheque on March 15, 2023, totalling ₹4,40,056, including the insured amount of ₹3,31,854, interest amounting to ₹1,03,202, and the cost of the proceedings.
Expressing his dissatisfaction, Mr. Zhalki emphasized that insurance companies are enticing farmers while failing to fulfill the objectives of the Pradhan Mantri Fasal Bima Yojana (PMFBY). In this specific case, the insurance company only paid ₹2,158 to the farmer, who suffered a crop loss on 20 acres of land, despite the premium amounting to ₹6,637.08.
He appealed to the district administration and the Joint Director of Agriculture to raise awareness about crop insurance programs designed to genuinely benefit farmers.
