The Punjab and Haryana High Court has taken a firm stand against a private insurance firm, ICICI Lombard General Insurance, for its inadequate and negligent handling of crop insurance claims. This decision emanates from a case involving several farmers from Haryana’s Jhajjar district, who faced undue hardship and harassment due to the insurance firm’s failure to efficiently process and pay out crop insurance under the Pradhan Mantri Fasal Bima Yojna (PMFBY).
Justice Vinod S. Bhardwaj, presiding over the case, imposed a fine of Rs 1 lakh on ICICI Lombard General Insurance, highlighting the company’s poor functioning and misconduct in dealing with the farmers’ insurance claims. The court’s decision reflects a broader critique of the systemic failures that have led to the exploitation and neglect of farmers, who are already vulnerable due to the unpredictable nature of agriculture.
The court also criticized officials from Haryana’s agriculture and farmer welfare department for their failure to protect the farmers’ interests. Despite being part of the district-level monitoring committee, these officials did not take adequate steps to ensure that the insurance claims were processed fairly and transparently. Justice Bhardwaj has called on the department’s principal secretary to take appropriate action against the defaulting and erring officials, signaling a clear directive for accountability and reform within the department.
The genesis of this legal battle dates back to 2017 when a petition was filed seeking directions for the payment of the indemnity amount of insurance for insured crops, akin to the compensation provided to other counterparts in Chhudani and nearby villages. The petitioners’ crops were severely damaged due to heavy rainfall and subsequent inundation, a calamity that was confirmed by a survey conducted by the state agriculture department and the insurance company’s official on October 7, 2016. Despite the clear evidence of 100% damage to the notified crops and the passage of more than a year, the insurance claims remained unpaid, leaving the farmers in a state of financial distress.
In its ruling, the High Court has ordered ICICI Lombard General Insurance to recalculate the entire amount of admissible benefits and damages payable to the farmers, based on the losses assessed and reported by the loss assessment committee. Furthermore, the company is mandated to make reimbursements along with an interest of 6% per annum from the date of filing the petition until the actual disbursement, ensuring that the farmers are compensated not just for their losses but also for the prolonged delay in receiving their dues.
This judgment is a significant step towards reinforcing the legal protections available to farmers against corporate and bureaucratic inefficiencies. It serves as a reminder of the judiciary’s role in upholding justice and fairness, especially for those who form the backbone of the country’s agricultural sector. As the High Court’s decision reverberates beyond the confines of Haryana, it is hoped that this will lead to more stringent oversight and ethical practices in the processing of crop insurance claims, thereby safeguarding the livelihoods of farmers across India.
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