Former minister and INLD leader Sampat Singh said there was a need to bring comprehensive reforms in the Pradhan Mantri Fasal Bima Yojana (PMFBY) as the scheme had been proving a boon for the insurance firms rather than providing protection to farmers.

He said against the premium of Rs 82,015 crore collected pan India, only Rs 34,799 crore was paid to farmers as claim settlement and the insurance firms earned Rs 47,216 crore in three years. 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 firms collected Rs 2,827.02 crore in premium 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.

Raising a question as to why private insurance companies should be allowed to earn such huge profits when the bulk of the premium is financed through taxpayers’ money, he alleged that farmers in Haryana have faced delays in claim settlement, rejection of genuine claims, inadequate compensation and a lack of transparency in crop loss assessment.

The INLD leader said the existing model of implementing the PMFBY through private insurance companies had failed to safeguard farmers’ interests. He suggested that the scheme should instead be implemented through government-owned insurance companies, such as the Agriculture Insurance Company of India and other public sector insurers, 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.

He sought an audit of the PMFBY by the Comptroller and Auditor General (CAG), saying it should be determined whether the scheme is serving farmers or private insurers.

Source - https://www.tribuneindia.com