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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
V.K. Jain, Presiding Member
Agriculture Insurance Company of India Limited —Petitioner
versus
Badri Singh Bisht & Anr. —Respondents
Revision Petition No.1654 of 2016
(Against the Order dated 23/02/2016 in Appeal No. 48/2015 of the State Commission Uttaranchal)
Decided on 24.10.2016
Counsel for the Parties:
For the Petitioner:Mr. Tuhin, Advocate
For the Respondents:Mr. Badri Singh Bisht, Advocate
IMPORTANT POINT
Insurance company is fully justified in computing compensation on the basis of data collected and provided by Reference Weather Station.
Headnote:Consumer Protection Act, 1986—Sections 15, 17, 19 and 21—Insurance—Weather Based Crop Insurance Scheme—Loss suffered due to bad weather—District Forum directed payment of compensation—Compensation was calculated as per weather data provided by Reference Weather Station—Since scheme envisaged payment of compensation computed solely on basis of data provided by Reference Weather Station, computation made and compensation paid by petitioner company to complainants cannot be faulted with even if actual loss suffered by complainant was substantially higher—Petitioner company was fully justified in computing compensation on the basis of data collected and provided by Reference Weather Station— Compensation paid to complainants was very meager and more or less nominal but scheme as framed by Government, does not envisage payment of a higher compensation or a compensation based upon actual loss suffered by farmers—Direction for payment of compensation awarded by District Forum cannot be sustained—Impugned orders set aside and complaints dismissed. (Paras 5, 7, 8 and 9)
Result: Revision Petition allowed.
IA/1754/2016 (For condonation of delay)
V.K. Jain, Presiding Member—This is an application seeking condonation of delay in filing the revision petition. The delay occurred on account of the petitioner having filed a joint revision petition being revision petition no. 1654 of 2016 which was filed within the prescribed period of limitation. The delay is therefore, condoned. The application stands disposed of.
RP/1654/2016 & RP/2515/2016 to RP/2520/2016
1. Pursuant to the guidelines issued by Government of India vide its letter no. 13011/01/2008-Credit-II dated 13.08.2010, Government of Uttarakhand issued an order dated 14.01.2011 for weather based crop insurance scheme in the State of Uttarakhand for Rabi weather 2010-2011, on a pilot basis. Under the aforesaid orders issued by the Government, the petitioner company was designated for implementation of the aforesaid insurance scheme. The payment of compensation to the farmers was to be made in terms of the scheme called weather based crop insurance scheme, issued by the petitioner company. The aforesaid scheme to the extent it is relevant reads as under:
3. Area Approach
The scheme shall operate on the principle of “Area Approach” in selected notified Reference Unit Areas. Area Approach signifies that a “Reference Unit Area” shall be considered as a Unit-Area of Insurance for the purpose of acceptance of risk and assessment of compensation as well. Therefore, all insured-cultivators of a Notified Crop in the notified Reference Unit Area shall be deemed to be on par so far as their terms of insurance coverage and assessment of compensation are concerned.
5. Geographical Coverage
(a) “Reference Unit Areas” are linked to specific Reference Weather Stations.
(b) “Reference Weather Stations” are those which are commissioned for providing “Weather Data” for the purpose of assessment of compensation.
(c) “Reference Unit-Area” is a geographical area around a Refence Weather Insurance i.e., SLCCCI, which is deemed to be reflective of the Reference Weather Station’s Weather Data. To the extent practicable, such Reference Unit-Area shall be restricted to 25 km. radius around the Reference Weather Station in case of Rainfall, and 100 km. radius in case of other weather parameters like Frost, Heat (Temperature), Relative Humidity, etc.
14. Compensation (Payout)
(I) AIC shall be responsible for all payouts arising out of “Adverse Weather Incidence” strictly in terms of the Scheme terms & conditions read with the relevant premium & payout tables. However, this responsibility of AIC shall attach only when the ‘Risk has incepted’; that is, AIC has duly received the FULL PREMIUM, directly from the Insured his own part, AND ALSO the corresponding Premium Subsidy part from the Governments.
(II) Pay-out shall arise ONLY in case of Adverse Weather Incidence. Adverse Weather incidence is equivalent to the deviation between “Trigger Weather” and “Actual Weather” Data recorded at a “Reference Weather Station” during the specified time-period. Trigger Weather is a pre-defined Weather Parameter applicable to a Notified Crop in a notified Reference Unit Area.
In case of Adverse Weather Incidence (AWI), all the insured cultivators growing the Notified Crop in the Reference Unit Area shall be deemed to have suffered the same level of AWI and the same proportion of crop-loss, and become eligible for the same rate of payouts.
2. It would thus be seen that the scheme was to be implemented on area approach basis wherein reference unit areas were to be notified for the purpose of insurance of the crop. The reference unit areas were ordinarily to cover a radius of about 25 kms in case of rainfall and 100 kms in case of other weather parameters such as frost, heat, relative humidity etc. Reference Weather Stations were also designated under the scheme for the purpose of providing weather data applicable to the area covered by a concerned reference unit area, for the purpose of calculation of compens
