The new Crop Insurance Scheme, Pradhan Mantri Fasal Bima Yojana is in line with One Nation – One Scheme theme. Consider the following statements about PMFBM:
Which of the above statements is/are incorrect
The new Crop Insurance Scheme, Pradhan Mantri Fasal Bima Yojana is in line with One Nation – One Scheme theme. Consider the following statements about PMFBM:
Which of the above statements is/are incorrect
The correct option is B 1 and 3 only
The PMFBY replaces the existing two schemes National Agricultural Insurance Scheme as well as the Modified NAIS.
There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%. There is no upper limit on Government subsidy. Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers.
The Scheme shall be implemented on an ‘Area Approach basis’ i.e., Defined Areas for each notified crop for widespread calamities with the assumption that all the insured farmers, in a Unit of Insurance, to be defined as "Notified Area‟ for a crop, face similar risk exposures, incur to a large extent, identical cost of production per hectare, earn comparable farm income per hectare, and experience similar extent of crop loss due to the operation of an insured peril, in the notified area.
Defined Area (i.e., unit area of insurance) is Village/Village Panchayat level
1 and 3 only
The PMFBY replaces the existing two schemes National Agricultural Insurance Scheme as well as the Modified NAIS.
There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%. There is no upper limit on Government subsidy. Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers.
The Scheme shall be implemented on an ‘Area Approach basis’ i.e., Defined Areas for each notified crop for widespread calamities with the assumption that all the insured farmers, in a Unit of Insurance, to be defined as "Notified Area‟ for a crop, face similar risk exposures, incur to a large extent, identical cost of production per hectare, earn comparable farm income per hectare, and experience similar extent of crop loss due to the operation of an insured peril, in the notified area.
Defined Area (i.e., unit area of insurance) is Village/Village Panchayat level
