INLD Leader Raises Concerns Over PMFBY Profits
Former minister and Indian National Lok Dal (INLD) leader Sampat Singh has demanded a thorough review of the Pradhan Mantri Fasal Bima Yojana (PMFBY), alleging that the scheme has become a windfall for private insurance companies at the expense of farmers. Speaking in Hisar, Singh highlighted that between 2023 and 2025, insurance firms collected premiums totaling Rs 82,015 crore nationwide but disbursed only Rs 34,799 crore as claims, leaving a profit of Rs 47,216 crore. In 2025 alone, insurers reportedly earned nearly Rs 20,619.28 crore.
Haryana Data Shows Disparity
Focusing on Haryana, Singh pointed out that insurance companies collected Rs 2,827.02 crore in premiums from 2023 to 2025, while claims settled amounted to just Rs 2,096.86 crore, a difference of approximately Rs 730 crore. Of the total premium, farmers contributed Rs 731 crore, with the Centre and Haryana government each contributing Rs 732 crore. This means nearly two-thirds of the premium came from public funds. Singh questioned why private insurers should be allowed to earn huge profits when the bulk of the premium is financed by taxpayers.
Farmers Face Delays and Inadequate Compensation
The INLD leader alleged that farmers in Haryana have encountered delays in claim settlement, rejection of genuine claims, inadequate compensation, and a lack of transparency in crop loss assessment. He argued that the current model of implementing PMFBY through private companies has failed to protect farmers' interests.
Proposal for Government-Owned Insurance Implementation
Singh suggested that the scheme should be implemented through government-owned insurance companies such as the Agriculture Insurance Company of India and other public sector insurers. This would ensure that public funds are used entirely for farmers' welfare. He added that the profits earned by private insurers could instead be redirected to provide higher and timely compensation for crop losses, bonuses on 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.
Demand for CAG Audit
Singh called for an audit of PMFBY by the Comptroller and Auditor General (CAG) to determine whether the scheme serves farmers or private insurers. He emphasised the need for comprehensive reforms to ensure the scheme fulfills its intended purpose of protecting farmers from crop losses.
