Former CM Basavaraj Bommai wrote a letter to CM DK Shivakumar demanding simplification of the rules of the crop insurance scheme. He said that due to ‘self-declaration forms’ and other technical glitches, farmers are being deprived of the benefits of insurance and they are facing huge risks.
Bengaluru (Karnataka) [भारत]July 16 (ANI): Former Karnataka Chief Minister Basavaraj Bommai on Wednesday wrote a formal letter to Chief Minister DK Shivakumar, urging the state government to relax the stringent rules of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS).
He highlighted that a new government rule, which makes it mandatory for both loan takers and non-loan farmers to submit a “self-declaration form”, has put farmers in dire straits. Citing official correspondence from the Agriculture Commissioner of Karnataka and the Central Government, Bommai in his letter expressed deep concern that these new rules may completely exclude small and marginal farmers from the safety net of crop insurance.
Bommai enumerated 17 major flaws
In his letter, the former chief minister identified 17 major technical and procedural issues which he claimed could exclude vulnerable farmers from the protective net of crop insurance.
Claims are being rejected on minor mistakes
He pointed out that minor typing mistakes made by cyber center operators during data entry are leading to claims being rejected outright by terming them as “false declarations”.
Farmers are bearing the brunt of banks’ negligence
He further alleged that insurance companies are “punishing farmers for the negligence of banks,” where banks fail to update loan repayment status in their software, thereby falsely accusing farmers of providing incorrect information.
“Insurance companies are forfeiting premiums and canceling compensation by dragging out verification till the end of the season, only to have claims rejected on technical grounds at the last moment,” Bommai said.
Misuse of ‘Joint Account’ records
He also flagged “misuse of joint account records”, noting that if one member of a family has a loan, insurance companies are declaring other joint holders as ineligible as “non-borrowers”, effectively cheating farmers by linking the same loan to the entire survey number.
Delay in double loan and account transfer becomes a problem
The letter also highlighted the “dual loan dilemma” faced by borrowers from both co-operative societies and nationalized banks and the confusion caused by the “delay in account transfer” after the death of a landowner.
Bommai also expressed concern over “excuses on crop change”. He said when farmers sow crops with low moisture due to delayed monsoon, insurance firms refuse payment citing ‘mismatch in data’.
He also highlighted the difficulties faced by tenant farmers and non-resident landowners in obtaining signatures required for self-declaration forms.
Technical problems and fear of legal action
The letter also mentioned structural issues like frequent server crashes on the National Crop Insurance Portal (NCIP) and strict warnings on declaration forms creating fear of legal action.
“Fed up with these tedious and complex processes, many poor farmers are choosing to forgo crop insurance altogether, exposing themselves to devastating financial risks,” Bommai warned.
Pointing out these highly complex technical and procedural anomalies, Basavaraj Bommai has urged the state government to immediately simplify these stringent rules to protect the livelihood of the farmers of the state. (ANI)
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