The former minister and INLD leader, Sampat Singh, has said there is a need for comprehensive reforms in the Pradhan Mantri Fasal Bima Yojana (PMFBY), alleging that the scheme has proved to be more beneficial for insurance companies than for farmers.
In a statement issued here on Saturday, Singh said that against a premium collection of Rs 82,015 crore, only Rs 34,799 crore was paid to farmers as claims, while insurance companies earned Rs 47,216 crore over a three-year period. He added that in 2025 alone, insurance companies reportedly earned nearly Rs 20,619.28 crore.
Referring to Haryana’s data, the former minister said insurance companies collected Rs 2,827.02 crore in premiums between 2023 and 2025, while claims worth only Rs 2,096.86 crore were settled, leaving a difference of nearly Rs 730 crore.
Of the total premium collected in the state, farmers contributed Rs 731 crore, while the Centre and the Haryana government contributed Rs 732 crore each, meaning nearly two-thirds of the premium came from public funds.
Questioning why private insurance companies should be allowed to earn such large profits when the bulk of the premium is financed through taxpayers’ money, Singh alleged that farmers in Haryana have faced delays in claim settlements, rejection of genuine claims, inadequate compensation and a lack of transparency in crop-loss assessment.
Singh said the existing model of implementing the PMFBY through private insurance companies has failed to safeguard farmers’ interests. He suggested that the scheme should instead be implemented through government-owned insurers, such as the Agriculture Insurance Company of India and other public sector insurance companies, so that public funds are used entirely for farmers’ welfare.
He said the profits earned by private insurers could instead be utilised to provide higher and timely compensation for crop losses, bonuses on wheat, paddy and other minimum support price (MSP) crops, subsidised seeds and fertilisers, assistance for farm machinery and micro-irrigation, special support for small and marginal farmers, and investment in climate-resilient agriculture and rural infrastructure.
The INLD leader demanded that the government make public district-wise and company-wise details of premiums collected, claims settled, pending and rejected claims, and profits earned by insurance companies.
He also sought a comprehensive audit of the PMFBY by the Comptroller and Auditor General (CAG), saying it should be determined whether the scheme is serving farmers or benefiting private insurers through public funds.
The former minister maintained that the crop insurance scheme should not become a source of assured profits for private companies and said every rupee of public money should ultimately be used for the welfare of farmers.
