Secure Your Harvest Quiz Quiz

Explore key features and facts about crop insurance schemes in agriculture, designed to help farmers manage risks and safeguard their livelihoods from unpredictable events.

1. Basic Purpose of Crop Insurance

   What is the primary purpose of a crop insurance scheme for farmers?

   1. To advertise new farming equipment
   2. To teach organic farming methods
   3. To provide financial compensation for crop losses due to unforeseen disasters
   4. To increase the yield of crops using advanced seeds

   Explanation: Crop insurance is primarily designed to compensate farmers for losses caused by events like floods, droughts, or pest attacks. Increasing yield, advertising equipment, and teaching organic methods are important in agriculture but not the main purpose of insurance schemes.

2. Types of Risks Covered

   Which of the following risks is typically covered under agricultural crop insurance schemes?

   1. Losses due to drought
   2. Delays in fertilizer supply
   3. Poor quality seeds purchased
   4. Price fluctuations in the market

   Explanation: Most crop insurance schemes cover risks from natural calamities like drought. Market price changes, low-quality seeds, and fertilizer delivery issues are generally not covered by basic crop insurance schemes.

3. Eligibility for Crop Insurance

   Who is usually eligible to enroll for a government crop insurance scheme?

   1. Import companies handling grains
   2. Both small and large-scale farmers
   3. Only export-oriented agro-businesses
   4. Urban small business owners

   Explanation: Government crop insurance schemes generally allow both small and large-scale farmers to participate. Companies focused solely on exports, importers, or urban business owners are not the primary beneficiaries of these programs.

4. Claim Settlement Process

   After suffering crop loss from a hailstorm, what is a typical step a farmer must take to file an insurance claim?

   1. Switch to a different crop immediately
   2. Sell the remaining crops at any price
   3. Wait until the next harvest season
   4. Report the loss to local authorities or insurance provider promptly

   Explanation: Promptly reporting the loss initiates the claim process, allowing assessment and compensation. The other options either do not qualify for initiating claims or are unrelated to the claims process of crop insurance.

5. Premium Payment in Crop Insurance

   How are premiums for crop insurance schemes typically paid by farmers?

   1. Farmers pay a percentage of the insured amount, sometimes with government subsidies
   2. Farmers only pay if a loss occurs
   3. Premiums are deducted from crop sale profits after harvest
   4. Premiums are replaced by volunteer work in the community

   Explanation: Farmers pay a set premium, often subsidized by the government to make insurance affordable. Paying only after a loss, deducting premiums from profits, or substituting with volunteer work is not the common structure for crop insurance programs.