Indian National Lok Dal (INLD) leader and former minister Sampat Singh has called for comprehensive reforms in the Pradhan Mantri Fasal Bima Yojana (PMFBY), alleging that the scheme has disproportionately benefited private insurance companies at the expense of farmers. In a statement issued on Saturday, Singh demanded a Comptroller and Auditor General (CAG) audit of the scheme, questioning the huge profits earned by private insurers from public funds.
Rs 47,216 crore profit for insurers over three years
Singh cited data showing that between 2022 and 2025, insurance companies collected premiums totaling Rs 82,015 crore but paid only Rs 34,799 crore in claims to farmers. This left insurers with a profit of Rs 47,216 crore over the three-year period. In 2025 alone, insurance companies reportedly earned nearly Rs 20,619.28 crore, according to Singh.
“The scheme has proved to be more beneficial for insurance companies than for farmers,” Singh said in his statement. He argued that the existing model of implementing PMFBY through private insurers has failed to safeguard farmers’ interests.
Haryana-specific data shows Rs 730 crore surplus
Focusing on Haryana, Singh revealed that 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. This left a difference of nearly Rs 730 crore, which he said represents profits for insurers. Of the total premium collected in the state, farmers contributed Rs 731 crore, while the central and state governments each contributed Rs 732 crore. Thus, nearly two-thirds of the premium came from public funds.
“Why should private insurance companies be allowed to earn such large profits when the bulk of the premium is financed through taxpayers’ money?” Singh questioned. He 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.
Demand for implementation through public sector insurers
Singh suggested that the PMFBY should be implemented through government-owned insurers such as the Agriculture Insurance Company of India and other public sector insurance companies. He argued that this would ensure public funds are used entirely for farmers’ welfare. The profits earned by private insurers could instead be utilized to provide higher and timely compensation for crop losses, bonuses on wheat, paddy, and other minimum support price (MSP) crops, subsidized seeds and fertilizers, assistance for farm machinery and micro-irrigation, special support for small and marginal farmers, and investment in climate-resilient agriculture and rural infrastructure.
Call for transparency and CAG audit
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.
Singh maintained that the crop insurance scheme should not become a source of assured profits for private companies. “Every rupee of public money should ultimately be used for the welfare of farmers,” he said.
