Guj HC orders insurance compensation upto ₹8 cr to farmers for crop damage in 2017-18
he Gujarat High Court has directed SBI General Insurance Company to pay over ₹8 crore in crop insurance compensation along with 8% interest to farmers affected by floods during the 2017–18 Kharif season. The order came after hearing multiple petitions filed by thousands of farmers across the state.A bench of Chief Justice Sunita Agarwal and Justice D N Ray ruled that around 15,047 eligible farmers, as identified in a 2023 report by a state-appointed committee, must receive their compensation within three weeks. The court also stated that farmers whose individual claims were rejected or left pending could still seek legal recourse.The court dismissed objections raised by the insurance company, clarifying that any dispute between the insurer and the government cannot deprive farmers of rightful benefits, especially since farmers had paid their crop insurance premiums on time under the Pradhan Mantri Fasal Bima Yojana. If the company had issues with the government’s report, it could take legal action against the state, but payment to farmers must not be delayed.Case detailsDue to heavy rains and floods in districts including Surendranagar, Anand, Patan, Banaskantha, and Morbi during 2017-18, which had caused widespread crop destruction. Despite the Centre and the state paying a total premium of ₹512 crore to the insurance company, many farmers were denied compensation on various grounds, leading to the legal battle that lasted seven years.
he Gujarat High Court has directed SBI General Insurance Company to pay over ₹8 crore in crop insurance compensation along with 8% interest to farmers affected by floods during the 2017–18 Kharif season. The order came after hearing multiple petitions filed by thousands of farmers across the state.
A bench of Chief Justice Sunita Agarwal and Justice D N Ray ruled that around 15,047 eligible farmers, as identified in a 2023 report by a state-appointed committee, must receive their compensation within three weeks. The court also stated that farmers whose individual claims were rejected or left pending could still seek legal recourse.
The court dismissed objections raised by the insurance company, clarifying that any dispute between the insurer and the government cannot deprive farmers of rightful benefits, especially since farmers had paid their crop insurance premiums on time under the Pradhan Mantri Fasal Bima Yojana. If the company had issues with the government’s report, it could take legal action against the state, but payment to farmers must not be delayed.
Case details
Due to heavy rains and floods in districts including Surendranagar, Anand, Patan, Banaskantha, and Morbi during 2017-18, which had caused widespread crop destruction. Despite the Centre and the state paying a total premium of ₹512 crore to the insurance company, many farmers were denied compensation on various grounds, leading to the legal battle that lasted seven years.
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