AGRICULTURAL INSURANCE COMPANY OF INDIA Vs. GORIPATHY VEERA RAGHAVALU

JUDGEMENT

(1.) Aggrieved by the orders in C.C.No.43 of 2007 and C.C.No.44 of 2007, the opposite party no.2 preferred F.A.No.1380 of 2007 and F.A.No.1381 of 2007. Since both these appeals deal with common facts they are being disposed of by a common order.

(2.) F.A.No.1380 of 2007 is taken as the leading case wherein the facts as represented by the parties are that the complainant is a resident of Vallurupalem village of Krishna District and is an agriculturist possessing 3.87 acres in Sy.No.328 at Pamula Lanka Panchayat of Thotlavalluru Mandalam. The complainant used to raise commercial crops and he availed crop loan of Rs.84,000/- from the opposite party no 2 out of which the opposite party no.2 deducted an amount of Rs.1050/- towards premium to the opposite party no.1 on 6.8.2005. The complainant raised Sugar Cane crop in the said land with the permission of KCP sugar and Industries in the month of April 2005. Due to floods in the month of August, the entire Sugar Cane crop of the complainant was perished and thereby he sustained a loss of Rs.1,85,760/-. The Mandal Revenue Officer and Agricultural Officer of the mandal concerned certified that the loss of crop was 100% due to floods. Thereafter the complainant approached the opposite party no.2 and in turn opposite party no.1 but the opposite party no.1 failed to accept the version of the complainant and rejected his claim vide its letter dated 26.9.2006. Hence the complaint.

(3.) The opposite party no.1 resisted the case contending that the General Insurance company did not come forward for effecting the crop insurance. The Government in the year 1985 brought out the comprehensive crop insurance scheme and it was in force till 1999. Thereafter National Agricultural Insurance Scheme was started i.e., from 1999-2000 onwards. The major modifications being inclusion of non-loanee farmers, non-availing the institutional credit for raising the notified crops on an optional basis and inclusion of the annual commercial and horticultural crops. The Agricultural Insurance Corporation of India implemented the national Agricultural Insurance Scheme which is superior to Comprehensive Crop Insurance Scheme. The Government formulated the scheme 1. To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests and disease. 2. To encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology in agriculture. 3. To help stabilize farm incomes, particularly in disaster years.