Explore key concepts of crop insurance schemes, focusing on their features, benefits, and eligibility in agriculture. This quiz is ideal for farmers, agriculture students, and those interested in risk management in farming.
Which fundamental principle does crop insurance primarily rely on to support farmers after a natural calamity?
Explanation: Crop insurance relies on the principle of risk pooling, spreading risk among many policyholders so losses from disasters are compensated. Profit sharing deals with business profits, not the core function of crop insurance. Seed supply and income tax relief are unrelated to risk mitigation through insurance.
In crop insurance, what does the term 'sum insured' generally refer to?
Explanation: The 'sum insured' is the maximum compensation a farmer can receive in case of crop loss. It does not refer to the fertilizer subsidy, total premium paid, or loan interest, all of which are different financial elements in farming.
Which group is typically considered eligible for enrollment under government crop insurance schemes?
Explanation: Most crop insurance schemes cover both farmers with agricultural loans (loanee) and those without (non-loanee). Landscapers, government officials, and urban business owners are not typically eligible since the schemes are designed for agricultural producers.
Which of the following is a common peril covered under typical agricultural crop insurance schemes?
Explanation: Hailstorm is a standard natural peril covered by most crop insurance policies. Pesticide overuse and farmer's negligence are generally excluded as they are manmade risks, while late seed order is not classified as an insurable peril.
What is usually required for a farmer to initiate a crop insurance claim after experiencing crop loss?
Explanation: Farmers must typically provide evidence of loss and inform the insurer to start a claim. A bank statement, weather subscriptions, or irrigation receipts are not standard requirements for lodging crop insurance claims.