The Hindu Business Line : GIC extends date for farmers' declarations

GENERAL Insurance Corporation (GIC) has said that it has extended the cut-off date to receive declarations from banks for non-loanee farmers in Karnataka.

According to a statement issued by GIC to all nodal banks in Karnataka, insurance cover will be provided during the extended period depending on the merit of each case. Earlier, GIC had fixed the cut-off date as August 31, but revised it following the State Government's plea.

Karnataka is facing a weak monsoon, which threatens crops such as groundnut, sunflower, rain fed-maize, tur, ragi and cotton, apart from paddy, bajra and onion.

GIC had earlier extended its cut-off date for certain specific crops to 15 August. According to the notification to the nodal banks, banks extending loans to farmers should do so only after checking Area Sown Certificate duly signed by the revenue authorities post-field verification. All such exercises are seen to contain rising non-performing assets of the lenders and in turn restrict claims outflow of the insurer.

It can be recalled that the Centre had given the benefit of extension to only those non-loanee farmers who had done sowing during the first fortnight of August.

GIC also said that the bank would accept those proposals, which had been submitted within one month of sowing and the crop in normal condition.

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