Proposal to blacklist ICICI Lombard sent to Maharashtra government over crop insurance delay, says Akola collector

The Akola district administration in central Maharashtra has recommended the blacklisting of ICICI Lombard for delay in the disbursement of crop insurance to farmers, a senior official said on Tuesday.

The company said it was in talks with government officials and will extend full cooperation for quick settlement of all claims. ICICI Lombard has been appointed to insure crops in the district but there were delays in processing farmers’ compensation claims following natural calamities, said district collector Nima Arora.

It was also found that the company’s offices in the district did not have enough staff, she said. She sent a proposal to the government on Monday to blacklist the firm, Arora told reporters. On March 21, the state Agriculture Department had registered a case at Khadan police station against ten employees of ICICI Lombard under Indian Penal Code sections including 420 (cheating) and 465 (forgery) for allegedly undervaluing farmers’ losses due to natural calamities.

Meanwhile, when contacted for reaction, the company said it was talking with the officials. “We are in active discussions with State and District level authorities and are extending our full co-operation to ensure quick resolution and settlement of claims as per the PMFBY operational guidelines,” its spokesperson said.