Hyderabad: The government has threatened to blacklist insurance firms if they fail to compensate by October 13, farmers who suffered crop loss during the kharif season last year.
The firms owe over Rs 154 crore but have paid Rs 80 crore so far. Principal secretary, agriculture, C. Parthasarathi met with officials of insurance firms, and asked them to settle the claims and deposit the amount in the bank accounts of farmers by Friday.
Mr Parthasarathi asked the firms to settle rabi crop loss claims of last year by October 23. Insurers said the delay was on account of merger of SBI and SBH, in which farmers hold large number of accounts. They said there were also changes in IFSC codes of banks and other technical issues which resulted in delay in payment of compensation.
The firms have pocketed the premium paid by farmers, the Centre and the state government in kharif to-wards crop insurance under the PM Fasal Bima Yojana.
While the firms were paid a premium of Rs 233 crore, they sanctioned compensation of Rs 160 crore, though there was huge crop loss last year. Of this, the firms paid only half, citing technical and procedural issues.
Besides, the firms kept payment of compensation pending on the ground that the state government had paid its share of the premium late.
The Centre had paid its share of about Rs 72 crore in time, but the state delayed it.
