Summary of this article
Farmers under PMFBY received token crop insurance payouts as low as Re 1.
Union Agriculture Minister ordered a probe into insurers’ claim settlement practices.
Officials instructed to ensure fair, transparent, and timely damage assessments.
Insurers warned of strict action for negligence or insensitive claim handling.
The government has ordered an inquiry into complaints that some farmers have received crop insurance payouts as low as Re 1, according to a recent press statement by the PTI. The move came after Union Agriculture Minister Shivraj Singh Chouhan expressed strong displeasure over the issue, calling such payouts an insult to farmers’ hardships.
Minister Slams Insurers For ‘Playing Jokes’ With Farmers
Taking a tough stance during a high-level meeting on the Pradhan Mantri Fasal Bima Yojana (PMFBY), Chouhan questioned whether insurance companies were “playing jokes” with farmers by releasing such meagre compensation amounts. He made it clear that token settlements of Re 1 or similar sums for genuine crop damage would not be tolerated under any circumstances.
The minister directed officials to initiate a probe into these complaints and hold the insurers accountable. He emphasised that crop losses must be assessed fairly and transparently so that farmers receive the rightful compensation they are entitled to.
1 November 2025
Get the latest issue of Outlook Money
Call For Fair And Timely Damage Assessment
Chouhan also instructed insurers to improve the process of damage evaluation and to ensure claims are settled in a timely manner. He underlined that the spirit of the PMFBY lies in protecting farmers against risks, not ridiculing them with negligible claim amounts.
Officials present at the review meeting were asked to scrutinise all pending claims and identify gaps in the assessment procedures. Chouhan reaffirmed the government’s resolve to protect farmers’ interests and ensure their faith in the crop insurance system is not shaken. He said the intention behind the scheme was to support cultivators in times of distress, not to belittle their losses.
The minister’s directive, officials said, makes it clear that companies handling farm insurance must take their responsibility seriously. Any sign of carelessness or insensitivity in settling claims will invite strict action from the ministry.
