Telangana inks pact with LIC for insurance cover for farmers

HYDERABAD: The State government and the Life Insurance Corporation of India (LIC) on Monday singed a historic Memorandum of Understanding (MoU) for providing life insurance coverage to around 50 lakh farmers in the state.  Telangana farmers group will be the largest group for LIC. The insurance scheme will come into effect from August 15.

“This is the most significant thing I have done in all my life,’’ Chief Minister K Chandrasekhar Rao said after signing the MoU. He said that the kin of farmer would get `5 lakh insurance amount within ten days of the death of the farmer. “Even if it is a natural death or death due to old age, the insurance amount will be given to the kin of the farmer,” Chandrasekhar Rao added.

LIC chairman VK Sharma, who was present at the function, was all praise for Rao. “Providing life insurance cover to farmers is the first time in the country and it is a unique scheme.  Chandrasekhar Rao is a visionary leader in the country and he is the real Rythu Bandhu,’’ he said.
The LIC chairman assured that in case of death of any farmer, the claim amount would be deposited in the nominee’s account within seven -10 days.  

After signing the MoU, addressing agriculture officers and Rythu Samanvaya Samithi leaders, the Chief Minister termed those criticising Rythu Bandhu scheme as “demons”.
‘’Those demons who died at the hands of Lord Rama are born again and are present in every village. They have no other work but criticising the government schemes,’’ Rao said adding Rythu Bandhu is a good scheme which will save farmers from debts.

The Chief Minister called upon agriculture officers and Rythu Samanvaya Samithi to ensure that all the farmers are covered under the scheme.

He said that the State government would stand guarantee to banks for the State Rythu Samanvaya Committee headed by Gutta Sukhender Reddy to raise `7,000 crore to `8,000 crore loan. “If farmers are resorting to distress sale anywhere due to traders,  Sukhender Reddy’s team will buy their produce by paying `10 more than the MSP,” Rao said.

He wanted the agriculture extension officers (AEOs) to do a quick survey of agricultural implements available in their clusters and provide new implements, if necessary. Agriculture principal secretary C Parthasarathi and LIC regional manager G Satyanarayana Sastry signed the MoU.