Saskatchewan’s ombudsman says the agency that insures the province’s farmers is acting in an unjust manner when it comes to receiving and paying out interest.
In her annual report, the government watchdog highlighted the Saskatchewan Crop Insurance Corp. as an example of how “government agencies don’t always seem to understand the importance of fair decisions and fair process.”
Barbara Tomkins’ criticism stems from a complaint involving a farmer who was charged interest on an unpaid premium but wasn’t paid interest on an insurance claim that was delayed by an appeal.
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“Eventually the corporation agreed to pay interest to the individual who brought the complaint, but has declined to commence paying interest in the usual course of its business,” said the ombudsman.
Statutory provisions exempt the corporation from paying interest on disputed claims, but Tomkins said the principle of fairness suggests it should.
The general manager of the insurance corporation said cases where there are significant delays in paying claims are few and far between.
Doug Matthies said 58 percent of the more than 30,000 claims that were paid out last year came within one month of the claim being made and 98 percent were paid within three months of the claim.
In the “oddball” instance where there is a significant delay, the agency will decide on a case-by-case basis whether the farmers should get interest on the claim.
He said since the ombudsman report was filed, the agency has adopted a more lenient policy of charging interest on unpaid premiums. Producers now have six months instead of four to pay their premiums before interest is assessed.
But that still doesn’t address the concerns of the ombudsman, who said the agency needs to “develop a more consistent and fair policy respecting interest. If they’ve agreed to do it for this individual then why not for all individuals?”
Tomkins said the same recommendation was put forth by one of her predecessors and subsequently ignored by the province.
Matthies said the corporation’s board of directors has asked him to “take a look” at the interest policy and report on it this fall.
The Agricultural Producers Association of Saskatchewan wants to see the ombudsman’s recommendation implemented.
“The ombudsman’s common sense is very refreshing — that what’s good for the goose is good for the gander,” said vice-president Evans Thordarson.
But he believes unfairness is a bigger plague that has infected other departments.
“We’ve run into the same sort of attitude with the water corporation and with (Saskatchewan Environment) among civil servants.”
Thordarson said government agencies tend to interpret legislation to their advantage.
For instance, Sask Water will remove water obstructions built by humans but won’t touch a dam built by a beaver. Corporation officials point to vaguely worded legislation as justification for their actions, said Thordarson.
“There are hundreds and hundreds of farmers that have been frustrated by this type of approach from government agencies.”
