Following is the Text of the Statement issued by the Finance Minister Shri P.Chidambaram here today:

“There were representations that Agricultural Insurance Corporation (AIC) had not paid-out the insurance amounts to the farmers affected by drought in 2012 in Tiruvadanai Taluk, Ramanathapuram District.

I took up the matter with the Agricultural Insurance Corporation.

I have been informed that the first instalment of NAIS claims amounting to Rs. 740.80 crore in respect of paddy crop of Tamil Nadu has been approved. The share of the claims is as under:

a)  Government of India :         Rs. 303.40 crore

b)  State Government :             Rs. 303.40 crore

c)  AIC :                                   Rs. 134.00 crore

AIC has about 83.8% of the amount required to satisfy the claims from Tamil Nadu in full. Hence, they propose to release 83.8% of the claim to all the eligible farmers. The balance amount will be released on receipt of the remaining contribution.

I intend to follow-up with AIC to ensure that 100% of the claims of the farmers are released as early as possible.”

Agricultural insurance claim disbursement: insurer to release most of eligible claims now, balance pending remaining contributions. Following representations that AIC had not paid drought insurance claims for 2012 in Tiruvadanai Taluk, AIC reported approval of the first NAIS instalment for paddy in Tamil Nadu; with Central and State shares allocated and AIC holding ~83.8% of required funds, AIC proposes to release 83.8% of each eligible farmer's claim now and to release the balance on receipt of the remaining contribution, while the Finance Minister will follow up to ensure full payment as early as possible.