Explore key facts about crop insurance schemes that help protect farmers from financial losses caused by drought, pests, and other risks. This quiz covers basics of coverage, benefits, and procedures for crop insurance in agriculture.
What is the primary purpose of crop insurance schemes in agriculture?
Explanation: Crop insurance aims to shield farmers against losses due to risks like drought, floods, pest attacks, or diseases. Guaranteed high prices are beyond the scope of insurance policies, and free seeds or fertilizer subsidies are managed under different agricultural schemes.
Which of the following types of risks is commonly covered by crop insurance schemes?
Explanation: Crop insurance schemes typically cover risks like drought, floods, and pest infestations. They do not protect against market price changes, personal health issues, or equipment problems, which are managed by other types of insurance or support programs.
If a farmer's crop fails due to excessive rainfall, what is the usual first step for submitting an insurance claim?
Explanation: Timely intimation to the insurance office is essential for claims processing. Waiting or selling the damaged crop does not initiate an insurance claim, and taking a loan is unrelated to the claim procedure.
Who is usually responsible for paying the premium for crop insurance in most government-supported schemes?
Explanation: Typically, the premium is shared between the farmer and government to make insurance affordable. Insurance agents, banks, and crop traders are usually not responsible for paying the premium for the farmer.
Which type of farmer is generally eligible to enroll for crop insurance schemes?
Explanation: Crop insurance schemes are generally open to all farmers, regardless of size. Eligibility does not depend on export activity, machinery ownership, or the use of organic methods.