S09-Crop Insurance Mock Test 02
Indian agriculture is predominantly at a sustenance level, with many farmers producing mainly for their own consumption while gradually moving toward semi-commercial and commercial farming. Education improves farmers’ awareness of insurance contracts, communication, and responsibilities. Crop insurers face major underwriting challenges in drought because large numbers of farmers can be affected and drought may continue for multiple years, resulting in high actuarial premiums. Crop insurance uses technologies such as satellite imagery and remote sensing for estimating acreage, yield, and damage. CCEs support yield estimation under NAIS. Farmers must report losses within stipulated timelines. The 2020 Revamped Operational Guidelines strengthened PMFBY implementation from Kharif 2020.
1. What is 'Predominantly sustenance level of farming' as a feature of Indian agriculture?
a) Most farmers have large commercial farms
b) Most of the farmers are producing for their own consumption, though Indian agriculture is slowly moving towards semi-commercial and commercial farming
c) Farmers produce mainly for export
d) Farmers produce only cash crops for income
e) Farmers rely entirely on government food procurement
2. How does a farmer's level of education affect crop insurance?
a) It determines the premium rate exclusively
b) It helps communication of the insurance message, enables more sophisticated policies, and affects the farmer's awareness of contract responsibilities
c) It determines the amount of coverage alone
d) It affects only the franchise threshold
e) It determines eligibility based on qualifications
3. Who is the guest editor mentioned in Chapter 12?
a) Dr. Ajay Kumar, a satellite technology expert at ISRO
b) Faine Greenwood, a UAV analyst and journalist and assistant researcher at the Signal Programme at the Harvard Humanitarian Initiative
c) Ravi Shankar, an agricultural economist at ICAR
d) John Smith, a drone pilot and agricultural consultant
e) Dr. Mary Johnson, a crop insurance actuary at IRDAI
4. From an underwriting point of view, which of the following is/are challenges faced by insurance companies for covering drought?
a) Drought affects a large number of crop growers in the same season
b) In some parts of the country, drought may extend over more than one year
c) Due to the magnitude of risk, actuarially calculated premiums would be very high
d) All of the above
e) Only (A) and (B)
5. In AIC's NDVI-based approach, what period's satellite imagery was found to have highest co-relation with final wheat yield?
a) 1st week of November and 1st week of January
b) 2nd week of November and 1st week of February
c) 3rd week of January and 2nd week of February
d) 1st week of March and 1st week of April
e) 2nd half of December and 1st half of January
6. In the Varsha Bima example for Lucknow (UP), what is the normal rainfall?
a) 650 MM
b) 750 MM
c) 853 MM
d) 900 MM
e) 1000 MM
7. When are yield estimates based on CCEs furnished to states under NAIS?
a) At sowing time
b) During the growing season
c) Mostly during January/February for Kharif and June/July for Rabi seasons
d) Only after harvest is complete
e) At the beginning of the crop year
8. Which of the following is a condition typically required of an insured farmer?
a) Repaying any compensation after a good harvest
b) Guaranteeing a minimum yield
c) Sharing crop profits with the insurer
d) Notification of the loss within a stipulated time limit or as soon as possible after a loss event
e) Purchasing premium through a specific bank
9. What three things must the government focus on remote sensing technology to calculate?
a) Premium rates, Policy coverage, and Claims settlement
b) Insured area, Sum insured, and Deductible amount
c) Rainfall patterns, Temperature, and Humidity
d) Crop acreage, Crop yield, and Crop damage
e) Farm size, Farmer income, and Loan amounts
10. What is the significance of the year 2020 in the history of PMFBY?
a) PMFBY was launched in 2020
b) Revamped Operational Guidelines were released on 28th February 2020, effective from Kharif 2020
c) PMFBY merged with RWBCIS in 2020
d) NCIP was first launched in 2020
e) Private insurance companies were allowed from 2020
