7 Reasons why crop insurance claims get rejected

Crop insurance works like a safety cushion for farmers, as it allows them to claim the damaged crop losses due to natural calamity, pests, disease, localized loss, or postharvest damage. But not all crop insurance claims are successful because of small mistakes.

If you are a farmer intending to maximize your crop insurance benefits, it is important to understand the key reasons that can lead to a claim being rejected. 

Why Crop Insurance Claims Matter for Farmers in India?

Crop insurance in India gives financial support to the farmers when the insured crop suffers loss. It helps them recover input cost. With a successful crop insurance claim, 

• Loan repayment becomes easier
• Next sowing is possible.
• Family cash flow stays stable
• Input dealers can be paid
• Distress sale reduces

Overview of How Crop Insurance Claims Work

A crop insurance claim works in a simple manner. 

• The farmer enrolls for crop insurance before the cut-off date.
• The premium is paid.
• Crop and land details are uploaded
• Crop loss happens
• Farmer reports loss within 72 hours via an app, helpline, or bank. 
• Loss assessment is done by the bank officials. 
• The insurer compares current actual yields against the past 3–5-year historical average yield. 
• The claim is approved or rejected.
• Payment goes to the registered bank account.

Top 7 Reasons Why Crop Insurance Claims Get Rejected

Here are the 7 most common reasons why crop insurance claims get rejected. 

• Reporting delays: When there is a delay in reporting loss to local authorities, it can invalidate your claim. You need to make sure that you’re applying for the crop insurance claim within 72 hours of the loss. 
• Inaccuracy in information about the crop: Your crop insurance claim can get rejected when you’re not entering the correct crop details. If the farmer insured his soybeans but is actually claiming the insurance for cotton, it will be rejected for sure. Even in the case of the same crop, make sure you enter the correct details, like the area of the cultivated crop, the stage of the crop during the loss, etc. 
• The crop or region has not been notified: If the crop is not listed for that season or village, the claim may not qualify.
• Inaccuracies in land information: Make sure the survey number, khata number, acreage, and ownership or tenancy proof are correct on your application. Any wrong land details create a mismatch during verification, and this is a common crop insurance claim rejection reason. 
• Failure to make premium payment or enroll: You need to be sure that your insurance policy is in effect. You need to make sure that you have activated the insurance policy.
• Bank or Aadhaar mismatch: A crop insurance claim can be rejected if there is a wrong bank account, an inactive account, an Aadhaar mismatch, a duplicate entry, or missing KYC in the application. 
• Poor proof during survey: If the claimed damage cannot be verified, the claim becomes weak. You need to make sure that the proof photo is clear and all the relevant evidence is provided while claiming a loss. 

How Farmers Can Increase Crop Insurance Claim Approval Chances?

It is easy to increase crop insurance claim approval chances. 

• Check crop, village, season, and land details
• Keep premium receipt and policy number
• Save bank passbook and Aadhar copies.
• Report loss within 72 hours
• Take clear field photos
• Stay present during the survey.
• Keep damaged crops visible until inspection
• Track claim status on the official portal

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