Shallesh Koparkar, a farmer from Mouda in Nagpur, received Rs 10 as compensation for losses suffered due to unseasonal rains that hit Vidarbha last month.

"My two-hectare paddy field was covered under the Prime Minister Crop Insurance Scheme for a sum assured of one lakh," said Koparkar.

Koparkar had reported the loss to the insurance company and filed a claim, reporting 50% crop damage.

"The surveyors merely took photographs and later handed out a 10 rupee compensation," alleges Koparkar.

For records, compensation under the prime minister's scheme is given through different modes. First Is given in case of mid-season adversity, which means lack of rains or similar situation during the crop cycle. The second is given in case of localized calamity, which covers incidents like unseasonal rains or hailstorms. Other than this farmers themselves can report losses to the company which are independent of each other.

Koparkar got the compensation under the third category, which does not have a fixed method of assessing loss. A joint survey team, including insurance company's representatives, assess losses purely on the basis of surveyors' understanding. "At times the losses are indeed miniscule, but an error in judgment cannot be ruled out," said an agriculture department official.

Last week, former home minister Anil Deshmukh brought Yavatmal farmer Dilip Rathore to Vidhan Bhavan in Nagpur. Rathore had received a paltry sum of Rs 59 as insurance claim amount.

The state government has subsidized the premium to the extent that farmers have to pay nominal one rupee against crop insurance. As a result, crop insurance coverage has gone up to 90%. However, a number of farmers have complained of getting a paltry sum as compensation. State agriculture officials say there is a catch in the process. "As farmers have to pay only one rupee, even smaller plots, measuring little more than one square feet, have been insured. The sum assured is fixed for each crop on a per hectare basis. Now since a micro fraction of a hectare has been insured the sum assured also comes down," said the department official.

The state agriculture department has received 1.27 lakh applications for a sum assured up to Rs 1,000. This is because the sizes of land insured are just too small, said the official. However, Koparkar showed TOI a document which says 2 hectares of land has been insured for an amount of Rs one lakh.

The state has notified over 20 districts including Nagpur for payment of 25% of sum assured as advanced under mid-season adversity. Koparkar says he has received no other compensation except Rs 10.

Farmers have insured the tiny plots relying on a 2019 order which says they would get at least Rs 1,000 from the state, no matter what the insurance company eventually pays. So by paying just a rupee they can still get one thousand rupees as compensation. Though many like Koparkar say their losses are much higher.

Source - https://timesofindia.indiatimes.com