SC seeks Rs 200 crore from Bajaj Allianz as compensation for crop loss to farmers

The Supreme Courtroom on Thursday requested Bajaj Allianz to deposit Rs 200 crore in six weeks, responding to petitions by farmers of Maharashtra in search of reduction from the insurance coverage firm for crop losses.

A bench of Justices JK Maheshwari and Hema Kohli stayed the Bombay Excessive Courtroom order asking the corporate to pay compensation to three.5 lakh farmers in Osmanabad district of Maharashtra for the soybean crop brought on by heavy rains in 2020. .

The Supreme Courtroom discover states that if Bajaj Allianz doesn’t deposit the quantity, the keep will probably be waived. The Aurangabad bench of the Excessive Courtroom had earlier stated that the Maharashtra authorities ought to pay compensation to the farmers if the corporate doesn’t pay. The Excessive Courtroom had stated that in such a case the corporate must adjust to the instructions of the state.

The counsel for the petitioners claimed that the insurance coverage firm was amassing revenue from the farmers, the central authorities and the state on the premium deposited.

The court docket was informed that the corporate acquired about Rs 500 as premium beneath the Pradhan Mantri Fasal Bima Yojana (PMFBY) from farmers, the state and the Centre, however had launched solely 1 / 4 of the quantity for claims. “It’s submitted by realized counsel for the petitioner that the farmers had paid Rs.32.49 crore and the State Authorities had paid their share of Rs.276.17 crore; the Central Authorities paid their share of Rs.227.43 crore. to the insurance coverage firm. A complete premium of Rs. 436.10 crore has been acquired and distributed to the poor farmers of Rs. 84.68 crore,” stated the petition by the farmers.

Bajaj Allianz’s counsel submitted that farmers are required to tell the corporate inside 72 hours for compensation beneath PMFBY. The Excessive Courtroom rejected the argument. “In our view, the petitioners have thus made a case for reduction,” it stated.

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