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The state had earlier appointed an insurance company in 2005 for the purpose, paying a premium of Rs 6 crore for an insurance cover of Rs 1 lakh (in case of death) for one crore farmers.
“By April 9, 2006, there were 4,038 claims filed, but the company entertained only 656 of them and rejected the rest on various grounds like incomplete documentation and cases being beyond the purview of the terms and conditions,” Agriculture Minister Balasaheb Thorat said.
“There were some strange reasons given for the rejection, like a farmer who fell down from a tree to his death was said to have taken unnecessary risk.”
He pointed out that by the time the compensation amount started reaching the premium amount paid by the state government, it stopped paying the insured amount. He said that the state would move the national consumer grievances redressal forum soon and also blacklist the company.
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