Insurers post Rs 2,096 cr profit under crop insurance scheme
Nationwide profit touches Rs 47,216 crore in three years
Even as farmers grapple with crop losses due to erratic weather and delays in claim settlements, insurance companies have posted hefty profits under the Pradhan Mantri Fasal Bima Yojana (PMFBY), a scheme designed to shield cultivators against natural calamities and adverse conditions.
PM Fasal Bima Yojana
Gross premium (Rs crore)
Haryana
2023: Rs 756.10
2024: Rs 1,067.24
2025: Rs 1,003.68
Across the country
2023: Rs 30,319.87
2024: Rs 30,500.37
2025: Rs 21,195.28
Net profit (Rs crore)
Haryana
2023: Rs 472.10
2024: Rs 715.24
2025: Rs 908.68
Across the country
2023: Rs 9,471.87
2024: Rs 17,125.37
2025: Rs 20,619.28
Data from the Union Ministry of Agriculture and Farmers Welfare show that insurers in Haryana earned a total profit of Rs 2,096 crore during the three financial years from 2023 to 2025.
Against a gross premium collection of Rs 2,827.02 crore in the state during this period, claims worth only Rs 731 crore were paid to farmers, leaving substantial net gains for insurance firms.
The financial year 2025 proved the most lucrative. Companies collected Rs 1,003.68 crore in premium but paid only Rs 95 crore in claims, earning a profit of Rs 908.68 crore.
In 2023, insurers collected Rs 756.10 crore and disbursed Rs 284 crore as claims, making a profit of Rs 472.10 crore. Similarly, in 2024, against a gross premium of Rs 1,067.24 crore, claims worth Rs 352 crore were paid, resulting in a profit of Rs 715.24 crore.
Under PMFBY, the premium paid to insurers comprises three components — the farmer’s share and equal contributions from the state and Central governments. Over the three years, the Haryana Government contributed Rs 1,047.51 crore, matched by the Centre with an equal amount, while farmers bore Rs 732 crore as their share.
At the national level, the profit margins were even higher. Across India, insurers collected Rs 82,015.52 crore in gross premium between 2023 and 2025, while claims paid stood at Rs 34,799 crore. This translated into an overall profit of Rs 47,216.52 crore in three years.
The year 2025 alone saw insurance firms earning Rs 20,619.28 crore nationwide.
Balbir Singh Thakan of the All India Kisan Sabha, who sourced the data from the PMFBY website, alleged that the scheme was benefitting insurers more than farmers. “The huge profits garnered by the insurance firms indicated that this is a scheme meant to loot the farmers and not to protect their interests,” he said.
He added that farmers in Bhiwani and Charkhi Dadri had been staging dharnas demanding release of insurance claims, but alleged that the state government had failed to act.
