Odisha’s ruling party, the BJD, on Monday targeted the Centre for the failure of insurance companies to settle the claims of farmers under the Pradhan Mantri Fasal Bima Yojana.

The PMFBY was launched in 2016 with an objective to provide insurance coverage and financial support to the farmers in the event of failure of crop as a result of natural calamities, pests and diseases. Though crops have failed in many parts of Odisha, the claims of farmers are not being settled by the insurance companies despite demands.

Odisha, in fact, is facing a drought like situation due to deficient rainfall. The government on Monday had called an emergency meeting to formulate an action plan to tackle drought-like-situation in 27 districts due to rainfall deficiency.

Addressing a press conference here, BJD spokesperoson and Rajya Sabha member Sasmit Patra said: “Lakhs of farmers in districts like Bargarh, Sambalpur, Sonepur, Deogarh, Bolangir, Nuapada and Kalahandi districts are suffering due to PMFBY non settlement of claims. Claims amounting to more than Rs 1,000 crore have not been settled by insurance companies under PMFBY,” said

He said: “Till Kharif 2020, the total premium paid to insurance companies was Rs 6163.28 crore while the payment by the insurance companies to settle claims of farmers was Rs 5098.64 crore. Thus, the insurance companies profited to an amount of Rs 1064.64 crore, which is 17.27% of the total premium paid. “

He said that till Kharif 2021 in Odisha, the insurance companies have got Rs 7510.8 crore as premiums. “ Of the premium, the Odisha government has paid Rs 3250.48 crore, Odisha farmers have paid Rs 1009.84 crore as premiums and the Centre’s share was Rs 3250.48 crore. Though the insurance companies have made huge profits, the claim settlement is too negligible and the farmers are suffering on account of it,” he said.

Citing the figure Patra said, “In Odisha between 2018 and 2020, the farmers filed crop insurance claims of Rs 2090 crore but insurance companies paid only 50% of those claims amounting to Rs 1026 crore. The farmers of Odisha are facing repeated harassment by the insurance companies relating to the assessment of their claims and payment under PMFBY.”

Citing how the insurance companies are looting the money under the Pradhan Mantri Fasal Bima Yojana across the country, Patra said: “Over the past five years, Rs 1.26 lakh crore have been paid as crop insurance premium across India and Rs 87,320 crore received as claims. The insurance companies made Rs 40,000 crore of PMFBY money, affecting the interests of the farmers.”

Stating that the Union government should deliberate on these issues, Patra said: “The Centre should help 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.”

The BJD also reminded the centre how 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).

The BJD regretted the fact that though the party MPs have repeatedly taken this up in both Houses of Parliament, the claims of farmers are yet to be settled.

Farmer’s leader Sashadev Nanda told The Telegraph, “As per the rules a farmer is entitled to receive Rs 13,600 for crop failure in irrigated areas and Rs 6,800 in non-irrigated areas. But though the crops have failed, the insurance companies are yet to settle the claims of farmers.”