Cyclonic storm Aila, which ravaged the eastern part of the country in the last week of May, has caused massive agricultural damage. But the claims under weather-based crop insurance may not exceed Rs 7 lakh.
According to informal estimates by government officials, the total damage in the agriculture and horticulture sectors is pegged at around Rs 500 crore.
Damages in the horticulture segment alone could be around Rs 300 crore, a senior government official confirmed.
State-run Agriculture Insurance Co (AIC), ICICI Lombard General Insurance and Iffco-Tokio are the three companies which offer weather-based crop insurance in West Bengal.
However, the entire payout of Rs 7 lakh is likely to be made by AIC in two subdivisions (Contai and Egra) of the East Medinipore district, according to company officials.
Even though two of the worst-affected areas in North 24-Parganas (Bashirhat and Baduria) are covered under AIC’s weather insurance scheme, there would not be any payout. Reason: The huge damage in the area was caused more by wind and tides, than rainfall. According to AIC parameters, weather-based crop insurance claims are given in areas with over 75 mm of rainfall, whereas in the North 24-Parganas, the rainfall recorded by the meteorological department was only 62 mm.
In case of ICICI Lombard, the period of crop coverage expired on May 15, a little more than a week before Aila hit the state.
In case of Iffco-Tokio too, there were hardly any claims, said sources. No comment was offered by the company on the issue.
Also, in areas where AIC provides the facility, crop damage was the highest in case of sesame seeds, which like horticulture products, is not generally covered under weather insurance.
In most farms, paddy was kept in the field after being harvested, and insurance companies provide cover only for standing crops. As a result, a major portion of the summer season paddy crop was damaged in the fields, but was not covered under insurance.
At present, agriculture insurance is mostly based on area approach, like under the National Agriculture Insurance Scheme (NAIS), where payouts are made on yields in defined areas (unit area of insurance).
In view of long delays in claim settlement under NAIS, the government in 2003 had launched the Weather-Based Crop Insurance Scheme (WBCIS) on a pilot basis, giving insurance cover against losses incurred due to unfavourable weather conditions such as deficit, excess or untimely rainfall and variations in temperature.
