S09-Crop Insurance Mock Test 01
S09 Crop Insurance covers important concepts related to PMFBY, PCIS, RWBCIS, and agricultural risk management. Threshold Yield (TY) is the benchmark yield used to determine when indemnity becomes payable. Indian agriculture faces significant production risks because crop outcomes are uncertain. The National Crop Insurance Portal (NCIP) supports authentic stakeholder identification, digital records, and availability of historical yield, sown area, coverage, claims, TY and AY data. PMFBY provides financial support for crop losses caused by unforeseen events. Crop insurance also involves premium rating, insurance periods, paperless transactions, weather triggers, exit values, and detailed term sheets for weather-based insurance claims.
1. What is the primary objective of having Threshold Yield (TY) in PMFBY?
a) Setting minimum crop production targets
b) The benchmark yield below which indemnity becomes payable to insured farmers
c) Fixing the guaranteed yield for subsidy calculation
d) Setting export quota thresholds for crops
e) Establishing minimum procurement prices
2. What type of risk arises because production outcomes in Indian agriculture are highly variable and cannot be predicted with certainty?
a) Institutional risk
b) Personal risk
c) Production risk
d) Technology risk
e) Market risk
3. What is the significance of having Aadhaar-linked credentials for NCIP?
a) To enable digital payment of claims directly to farmers
b) To ensure authentic identification of stakeholders accessing the portal
c) To link crop insurance with health insurance
d) To track crop production statistics
e) To verify land ownership
4. What was the Comprehensive Crop Insurance Scheme (CCIS) launched on?
a) 1st April 1980
b) 1st April 1983
c) 1st April 1985
d) 1st April 1988
e) 1st April 1990
5. What is the role of State Governments in providing data available on NCIP?
a) Only reviewing data uploaded by others
b) Making available crop-wise IU-wise historical yield data, SOF, sown area, coverage and claims data, TY and AY
c) Only providing weather data
d) Only approving enrollment data
e) Only providing market price data
6. What is 'Paperless transactions' as a feature of PCIS 1979?
a) All records maintained electronically
b) A farmer did not have to do any paper work for insurance and for getting any claims
c) Premium payment via mobile phone only
d) Government maintained all insurance records
e) Claims processed automatically via satellite data
7. What principle underlies PMFBY's approach to farmer financial support?
a) Market-based insurance principles only
b) Financial support to farmers suffering crop loss/damage arising out of unforeseen events
c) Government-guaranteed income support regardless of loss
d) Mutual fund-based risk pooling
e) Commercial profit-making insurance
8. Which organizations' techniques are mentioned in Chapter 4 as being from the same generic background for premium rating?
a) UK, France and Germany
b) USA, Spain and Japan
c) Australia, Canada and Russia
d) China, Brazil and India
e) Netherlands, Denmark and Sweden
9. For sugarcane crop, to what maximum extent can the period of insurance be extended beyond twelve months?
a) Three months
b) Six months
c) Eighteen months
d) Twenty-four months
e) Thirty-six months
10. What is the 'detailed term sheet' required on NCIP for RWBCIS claims?
a) A detailed agricultural term glossary
b) The insurance policy document specifying weather triggers, exit values, sum insured for weather-based insurance
c) A financial term sheet for premium payment
d) A term plan for crop growing period
e) A detailed farming contract
