AGRICULTURE INSURANCE CO. OF INDIA REGISTERED OFFICE AT AMBA DEEP BUILDING 13TH FLOOR 14. K.G MARG NEW DELHI DELHI Vs. FARMERS SERVICE CO

JUDGEMENT

(1.) These three appeals have been filed, challenging the impugned order dated 19.05.2010, passed by the Andhra Pradesh State Consumer Disputes Redressal Commission (hereinafter referred to as "the State Commission ") in Consumer Complaint No. 62/2003, The Farmers’ Service Co-operative Society Ltd. Vs. The General Insurance Corporation of India & Ors. , vide which, the complaint filed by the Farmers’ Service Cooperative Society, which is also the appellant in one of the appeals, has been allowed.

(2.) The facts of the case are that the Farmers’ Service Cooperative Society Ltd. (hereinafter referred as ‘the Society’) is a registered Cooperative Society, comprising small and marginal farmers of the area as its members. The Society has been adopted by the State Bank of India, Sullurpet Branch (District Nellore, Andhra Pradesh) under a scheme evolved by the Govt. of India, known as ‘the National Agriculture Insurance Scheme’ (NAIS) (Rashtriya Krishi Bima Yojana).

(3.) The implementing agency of the said scheme is Agricultural Insurance Company of India, who is appellant in First Appeal No. 264/2010. This crop insurance scheme operates on the basis of ‘area approach’. The Insurance Company indemnifies the insured farmers in that area in terms of money for loss or damage, from the corpus fund created by contributions from a large number of similarly exposed farmers. As per the scheme, if the actual average yield of a notified insured crop in a notified area, falls short in the insured season than the threshold yield fixed over the area, all the insured farmers in that particular area growing that crop, are deemed to have suffered shortfall in their yield and are eligible for compensation in such contingency. The NAIS Scheme is in the shape of joint venture of the Central and State Government and the shortfall in the yield is calculated by the experts as per the formula provided in the scheme.