Explore key facts about crop insurance schemes in Indian agriculture, covering eligibility, coverage, premium rates, and claim processes designed to protect farmers from various risks.
Which group is primarily eligible to enroll in government-backed crop insurance schemes in India?
Explanation: Farmers who grow crops that have been officially notified are eligible for inclusion in these schemes, ensuring the support targets those actually involved in crop production. Corporations may use other insurance products, rural shop owners are not crop producers, and urban consumers are unrelated to agricultural insurance.
Which of the following risks is usually NOT covered by crop insurance schemes in India?
Explanation: Price drop or market fluctuation losses are not generally included; crop insurance focuses on natural calamities, post-harvest weather incidents, and biological risks like pests. Market interventions are handled by separate pricing or support schemes.
Under most crop insurance schemes, how is the farmer's premium typically decided?
Explanation: Premiums are usually calculated as a set percentage of the insured value, creating a transparent and equitable system. Premiums are not random, don't reference fertilizer prices, and are not individually negotiated but follow scheme guidelines.
If crops are damaged during the insured period, what step must a farmer usually take to start a claim?
Explanation: The essential first step is timely notification to the insurer or designated authority, initiating the verification and payout process. The other options are unrelated to the claims procedure or do not affect insurance response.
In the context of crop insurance, what does the 'sum insured' refer to?
Explanation: The sum insured is the upper limit on compensation, based on the value of the crop insured. Labor costs, government earnings, and rainfall data are relevant but not defined as the sum insured.