Oriental Insurance Company Roped in for Crop Insurance as AICL Opts Out

Oriental Insurance Company has been roped in by Tamil Nadu state government for crop insurance in the Madurai district. The insurer has been opted in for three years after AICL (Agriculture Insurance Company of India) quit after completing its contract period of three years.

The information was disclosed by Collector K. Veera Raghava Rao at the farmers’ grievance redressal meeting. The farmers urged the district administration to intervene for payment of crop insurance for the year 2018-19. The AICL is alleged by the farmers of rejecting the claims for full payment.

For 2018-19 AICL informed district administration that only 25% of the money would be paid to 120 revenue village farmers. This was not, however, agreeable to the district administration. The district administration refuted AICL that the farmers in all 400 revenue villages suffered 100% crop loss due to drought and thus be fully compensated.

In the last two years, AICL was alleged of offering only 25% of the money to the farmers of more than 100 revenue villages.

Addressing the farmers’ allegations, Mr. Rao disclosed that AICL is no more in the picture and that the district administration is taking all the necessary steps to secure crop insurance for 2018-19 in which 1.07 lakh farmers insured their cultivation in 1.19 lakh hectares.

Whereas, the Oriental Insurance Company would receive a premium for the year 2019-2010 for crop insurance once the farmers start cultivation this year.