IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOTTAYAM
Dated this the 28th day of April, 2023
Present: Sri.Manulal.V.S, President
Smt.Bindhu.R, Member
Sri.K.M.Anto, Member
CC No. 195//2021 (Filed on 15/09/2021)
Complainant : Rajan K.K S/o Kunjupanickan,
Kakkanattu House,
Kallara South P.O,
Vaikom, Kottayam - 686 611.
(By Adv: Jobin Mathew)
Vs
Opposite Parties : 1. The Manager,
Agricultural Insurance Company of India Ltd.,
Head Office, Plate B & C,
Office Block 1, 5th Floor,
East Kidwai Nagar,
New Delhi – 110 023.
(By Adv: Lithin Thomas)
2. The Regional Manager,
Agricultural Insurance Company of India Ltd., Regional Office, 8th Floor,
Carmel Towers, Cotton Hill P.O,
Vazhuthacaud,
Thiruvananthapuram - 695 014.
(By Adv: Lithin Thomas)
3. The Agricultural Officer,
Krishi Bhavan,
Kallara South P.O,
Kottayam - 686 611.
O R D E R
Sri.MANULAL V.S, PRESIDENT
Facts of the case of the complainant :
The complainant is a farmer and he along with other 53 farmers had cultivated the paddy field having an extent of 253 Acres and 23 cents name Mallikassery Padashekharam in Kallara Village. The first opposite party is the insurer of the paddy field which was cultivated by the complainant having an extent of 1.9600 hectors in survey no. 574/1A/IAB. The second opposite party is the Regional Office of the first opposite party and third opposite party is the Agricultural Officer of the Kallara Krishi Bhavan wherein the paddy field is situated. The complainant insured her paddy cultivation for Rs.1,56,800/- under Pradhan Manthri Fasal Bhima Yojana after paying the requisite premium of Rs.2,352/- for the year 2020. When the paddy is ripen for harvest on 5-04-2020 heavy rain and tempest occurred within the limits of Krishi Bhavan Kallara and 96.2 hector of paddy cultivation in Mallikassery Padashekharam was totally destroyed.
Immediately after the damage, the matter was informed to the insurance company and the third opposite party. On 5-04-2020 the third opposite party visited the site and reported the matter to the Government of Kerala. One Sibichan who is the investigator appointed by the insurance company had also visited and filed his report stating that the paddy cultivation was totally devastated in the heavy rain and wind occurred on 5-04-2020. Thereafter to the dismay of the complainant the first and second opposite parties delivered an amount of Rs. 3,830/- to the complainant on 8-04-2021 and had not paid the sum insured for the crop loss assessed by the opposite parties. The act of the first and second opposite parties amounts to deficiency in service. Hence this complaint is filed by the complainant praying for an order to realise Rs. 1,56,800/- for the loss of crops and Rs. 19,512/- towards the interest @ 9% for the said amount from 5-04-2020 to 23-08-2021 and a compensation of Rs. 10,000/- as compensation and cost of this litigation.
Upon notice opposite parties appeared before the Commission and filed version. Version of the first and second opposite parties is as follows :
The Government of Kerala as per its order G.O (Rt) NO. 615/2019/AGRI dated 5-07-2019 issued notification for the implementation of Pradhan Manthri Fasal Bhima Yogana propounded by the Central Government for insurance of notified crops in the notified area as per the provisions of the scheme detailed by the Govt. of India in PMFBY Operational Guidelines revised. First opposite party is the designated Insurance Company which is awarded the task of implementing the scheme for Rabi 2019 season. The scheme primarily operates on an area approach wherein the losses have to be indemnified on the basis of the yield data submitted by the state Government at the notified area level. In Kerala the unit for notified paddy crop is a Panchayath/Corporation/Municipality, which is considered as a unit area for purpose of acceptance of risk and assessment of compensation as well. Therefore, all insured cultivators of a notified crop in a notified area are deemed to be on par so far as their terms insurance coverage and assessment of compensation are concerned.
The collection of premium as well as payment of claims will be done as seasonal basis. The season as well as the loaning and covering period prevalent in Kerala for Paddy crop under the scheme are Khariff (Autumn) - 1 st April to 30th September, Rabi -1(Winter)-1st October to 31st December and Rabi-11 (Summer) 1st January to 31st March of the nest year. All farmers growing Paddy, Banana and Tapioca for Rabi 2019 season in Kerala who had availed seasonal Agricultural Operational Loans from commercial banks, co-operative credit institutions and regional rural banks are automatically and compulsorily to be covered under the scheme, provided they grow notified crops in notified areas. The scheme is voluntary for all non-loanee farmers who wish to insure their notified crops in the notified area.
Following stages of the crop and risks leading to crop loss are covered under the scheme. (a) prevented sowing/planting risk, (b)standing crop(sowing to harvesting), (c) post-harvest losses, (d) localized calamities. The assessments of loss are made under various covers as (a) widespread calamities (based on season-end yield), (b)on account of payment of claims due to Mid season Adversity, (c) prevented/failed sowing and prevented planting/germination claims, (d) post- harvest losses & localized risks.
The indemnity clause of PMFBY with respect to claims, based on yield data of a notified area is based on a broad principle of equity and has dealt the farmers on group basis to provide compensation on the basis of average production in a defined area. The actual average yield per hectare in the notified area is determined and only if the average actual yield is below the assured (thresh hold/guaranteed) yield, there can be a claim for all the insured farmers growing that crop in that defined notified area. The state Govt. conducts crop cutting experiments in all the notified areas in every seasons, through its Economic and statics to access actual yield per hectare.
Before notification, threshold yield per hectare is first calculated for each such notified area by multiplying level of indemnity %. Three levels of indemnity, viz, 70%, 80%, and 90% corresponding to high, moderate and low risk level of the areas shall be available for all crops. SLCCCI in consultation with insurance companies shall approve indemnity level for notified crops and areas at sub district or district level with average yield during the preceding last seven ears excluding yield of upto declared calamity years, in that notified area. The seasonal actual yield computed for each area, to find shortfall if any, in respect of the crop/ notified area for the season. If there is a shortfall in yield in any notified area in a season, each of the eligible insured farmers in that notified area will be eligible for indemnity, which is calculated as under :
Shortfall in yield x sum insured
Threshold yield
(Shortfall = Threshold yield – Actual Yield)
The complainant had insured his paddy crop under PMFBY for paddy Autumn in Rabi 2019 as non loanee type and the sum insured of the complainant is Rs. 1,56,800/- |(i.e 1.96 hectare x Rs. 80,000/-). The opposite party have computed the claim as per the Point No. 21.1.1 of operational guidelines which states that if actual yield per hectare of insured crop for the insurance unit in insured season, falls short of specified threshold yield, all insured farmers growing that crop in the defined are deemed to have sufficient shortfall of similar magnitude in yield. Claim shall be calculated at unit level as per following formula.
Threshold yield - Actual yield x sum insured
Threshold yield.
Accordingly the eligible claim of insured were calculated as Actual yield as 3592Kg/Ha and threshold yield as 3682Kg/Ha. The shortfall is calculated as 90g/ Ha( threshold yield - actual yield). The claim of the complainant is processed as 90Kg/Ha/3682Kg/Ha x Rs.80,000/Ha = Rs. 1955.46/Ha. Thus the eligible claim amount of the complainant is Rs. 1955.46/Ha x 1.96 Ha = Rs.3832.7. The said amount was transferred the bank account of the complainant. There is no deficiency in service on the part of the first and second opposite parties.
The third opposite party filed version contending as follows :
The Malikkari Padashekharam in Kallara village having an extent of 253 Acres and 23 cents were cultivated by the farmers and the complainant is one among them. Sowing report was given to an extent of 96.2 hectares after excluding the unsown portion. On 5-04-2020 heavy rain and cyclone occurred within the limits of Krishibhavan Kallara and 96.2 hectares of paddy cultivation of various farmers in Mallikkary Padashekharam was damaged which includes the complainant’s cultivation. First information report was prepared on 6-04-2020 and was duly sent to the Govt. for appropriate action.
Complainant filed proof affidavit in lieu of chief examination and marked Exhibits A1 and A2 from the side of the complainant. Syam Kumar B.G. who is the Regional Manager of the first opposite party filed proof affidavit in lieu of chief examination and marked Exhibits B1 to B11 from the side of the first opposite party. No oral or documentary evidence for the third opposite party.
On the basis of the contention of the rival parties we framed the following issues for consideration.
(1). Whether the opposite parties committed any deficiency in service as alleged?
(2) Regarding the relief and costs?
POINT Nos.1 & 2 :-
It is an admitted fact that complainant is a farmer and insured his paddy cultivation for Rs. 1,56,800/- under Pradhan Manthri Fasal Bhima Yojana after paying the requisite premium of Rs.2,352/- for the year 2020. There is no dispute about the sum insured and premium paid by the complainant. Exhibit A1 is the cover note issued by the first opposite party to the complainant.
It is the case of the complainant that the crop was destroyed due to heavy rain and tempest and therefore, the complainant is entitled for the compensation.The Government of Kerala vide Exhibit B1 issued notification for the implementation of Pradhan Manthri Fasal Bhima Yogana propounded by the Central Government for insurance of notified crops in the notified area as per the provisions of the scheme detailed by the Govt. of India vide Exhibit B2 PMFBY Operational Guidelines revised. The first opposite party is implementing agency for payment of compensation under the PMFBY scheme introduced by the Central Government for whole Kerala.
Admittedly the seasons covering period prevalent in Kerala for Paddy crop under the scheme are Khariff (Autumn) 1st April to 30th September, Rabi (Winter) - 1st October to 31st December and Rabi - 11 (Summer) is 1st January to 31st March of the next year.
As per the scheme the Government has to declare Yield data i.e. Actual Yield (AY) for a defined area on the basis of requisite number and crop cutting experiments. The Government has also specified Threshold Yield (TY). On the basis of Actual Yield (AY) and Threshold Yield (TY) the compensation is required to be assessed.
As per clause 7.3.2 of exhibit B2 the threshold yield is calculated as per the historical average yield of best five out of last seven years.
The Government provides the figure of the crop production Threshold Yield (TY), if Actual Yield (AY) is of the notified crop of a notified area for a particular year is less than Threshold Yield (TY) the insurance company is bound to indemnify the farmers and pay insurance amount.
The clause 21 of the scheme provides how to assess, process and approve the claim if raised by the insured farmer which reads as under :
21.1. wide spread calamities
21.1.1. If the “Actual Yield” (AY) per hectare of the insured crop for the insurance unit calculated on the basis of requisite number of Crop Cutting Experiments (CCEs)] in the insured season, falls short of the specified Threshold Yield (TY) Yield‟ (RY), all the insured farmers growing that crop in the defined area are deemed to have suffered shortfall of similar magnitude in yield.
PMFBY seeks to provide coverage against such contingency. Claim shall be calculated as per the following formula :
Threshold yield-Actual yield x sum insured
Threshold yield
According to the first and second opposite parties the actual yield of the complainant was 3592Kg/Ha and threshold yield as 3682Kg/Ha and the shortfall is calculated as 90 Kg/Ha(threshold yield - actual yield). Accordingly the first and second opposite parties processed the claim of the complainant as 90Kg/Ha/3682Kg/Ha x Rs.80,000/Ha = Rs. 1955.46/Ha. Thus according to the first and second opposite parties the eligible claim amount of the complainant is Rs. 1955.46/Ha x 1.96 Ha = Rs. 3832.7.
It is the case of the first and second opposite parties that the applicable period for Rabi 2019-2020 Winter Paddy Crop is from November 2019 to February 2020.
Exhibit A2 is the reply issued by the State Public Information Officer, who is the Deputy Director, Economics and Statistics, Kottayam. It is stated in the A2 that there are three season for paddy crop in Kerala namely ‘Virip’(1st July to 31st October), ‘Mundakan’(1st November to 28th February) and ‘Puncha’ (1st March to 30th June). Admittedly the paddy crop of the complainant along with other farmers were destroyed due to heavy rain and wind in the month of April 2020. Therefore the said season would come under Khariff (Autumn - 1st April to 30th September) as per Exhibit B2.
The first and second opposite parties calculated the actual loss of the complainant relying upon exhibit B6, which is the yield data of the Paddy for winter 2019-20 issued by the Directorate of Economics and Statistics, Thiruvanthapuram.
In Exhibit A2 it is stated that there paddy crop in Kallara Panchayath during the Puncha season of 2019-20. It is further stated in Exhibit A2 that due to the Covid-19 pandemic the crop cutting experiments were done only in Kaduthuruthy and Thalayolapparampu Panchayaths.
Though the first and second opposite parties contended that the complainant had insured his winter paddy crop under the scheme during Rabi 2019-2020 it is proved by Exhibit B5 that the cut of date for yield data for winter paddy crop is 31-07-2020 and the period for crop cutting experiment was November 2019 to February 2020. It is further stated in Exhibit B5 that the cut of date for yield data for summer paddy crop is 15-09-2020 and the period for crop cutting experiment was March 2020 to June 2020. From this it is evident that the first and second opposite parties calculated the actual yield of the complainant based on the winter season crop and not based on the Khariff (Autumn - 1st April to 30th September). The third opposite party filed version stating that on 5-04-2020 heavy rain and cyclone occurred within the limits of Krishi Bhavan, Kallara and 96.2 hectares of paddy cultivation of various farmers in Mallikkary Padashekharam was damaged which includes the complainant’s cultivation. The first information report filed by the third opposite party along with the version proves that paddy crop in 173.200 hectare is destroyed thereby caused damage to the tune of Rs. 2,59,80,000/- to the farmers.
As discussed earlier the loss shall be assessed by following formula :
Threshold yield-Actual yield x sum insured
Threshold yield.
The case of the complainant is that due to the heavy rain and wind his entire paddy crop was destroyed. It is evident from the records that the actual yield was not calculated.
Admittedly the threshold yield in the Kallara Grama Panchayath was 3682Kg/Ha. Thus we are of the opinion that as per the clauses in Exhibit B2 guidelines loss assessment shall be as follows:
3682(threshold yield) – 0(actual yield) x 80,000(sum assured)/3682 (threshold yield) = Rs.80,000/Hectare x 1.96= 156800. Thus we are of the opinion that the complainant is entitled to Rs. 1,56,800/- as the sum insured for the loss of crop in accordance with the terms and conditions of the PMFBY.
Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of :-
- Providing financial support to farmers suffering crop loss/damage
arising out of unforeseen events.
b. Stabilizing the income of farmers to ensure their continuance in farming
c. Encouraging farmers to adopt innovative and modern agricultural
practices
d. Ensuring flow of credit to the agriculture sector; which will contribute
to food security, crop diversification and enhancing growth and
competiveness of agriculture sector besides protecting farmers
from production risks”.
It is the duty of first and second opposite parties to give the claim on account of damage caused due to heavy rain. The crop of complainant was totally damaged. So, it is a clear cut case of deficiency on the part of first and second opposite parties. The authorities submitted by the counsel for first and second opposite parties are not disputed but the same are not applicable to the facts of instant case. In the present case, the complainant has demanded Rs.1.86,312/- - but we assess the loss as Rs.80,000/- per acre as per calculation mentioned in the document Ex.B2, therefore, the total loss comes to Rs.1,56,800/- (Rs.80,000/-x 1.96 ha).Out of which the first and second opposite parties already paid Rs. 3,830/- to the complainant.
Thus, as a sequel of above discussion, we allow the complaint against first and second opposite parties and direct the first and second opposite parties to pay Rs.1,52,970/-(Rupees One Lakh Fifty Two Thousand Nine Hundred and Seventy only) to the complainant and further to pay Rs.10,000/- (Rupees Ten Thousand only) as compensation on account of harassment and mental agony. The first and second opposite parties is also directed to pay Rs.3,000/-(Rupees Three Thousand only) to the complainant as litigation charges. Let the order be complied with within 30 days from the date of receipt of copy of this order, failing which the complainant shall be entitled interest @ 9% p.a. from the date of order till its realization.
Pronounced in the Open Commission on this the 28th day of April, 2023
Sri.Manulal.V.S, President Sd/-
Smt.Bindhu.R, Member Sd/-
Sri.K.M.Anto, Member Sd/-
APPENDIX :
Exhibits from the side of the Complainant :
Ext. A1 - Cover Note issued by the 1Ist opposite party
Ext.A2 - Reply letter No.A2-4/2022/DOK dated 20/01/2022 issued
by the State Public Information Officer/Deputy director,
Economics and Statistics, Kottayam
Exhibits from the side of Opposite parties :
Ext.B1 - Copy of GO dated 05/07/2019 regarding the implementation
of PMFBY and RWBCIS in the State of Kerala
Ext.B2 - Copy of Operational Guidelines of PMFBY(Revised)
Ext.B3 - Copy of Notification regarding the Administrative Approval of
Govt. of India for Rabi 2019 dated 23/02/2016
Ext.B4 - Copy of Notification issued by the 2nd opposite party to
all financial institutions and stakeholders for enrolment of
eligible farmers as per Exbt.B1
Ext.B5 - Copy of Letter No.EARAS/CCI/17733/2017/DES dated
28/06/2019 issued by Director General, Directorate of
Economic & Statistics, Thiruvananthapuram
Ext.B6 - Copy of Letter No.DES/1255/2020-CC1(EARAS) dated
08/05/2020 issued by Director, Directorate of Economic
& Statistics, Thiruvananthapuram
Ext.B7 - Copy of Insurance Coverage details of complainant
Ext.B8 - Copy of Claim Settlement dated 07/04/2021
Ext.B9 (series) - Copies of newspaper advertisement(3 Nos)
Ext.B10 - Copy of Judgement before the National Consumer Disputes
Redressal Commission, New Delhi
Ext.B11 - Copy of Order dated 11/08/2021 in Civil Appeal No.6040-6041/
2011 before the Supreme Court of India
By Order,
Sd/-
Assistant Registrar
