S09-Crop Insurance Mock Test 08

1. What is the maximum insurance liability per farmer under PMFBY?

a) Rs. 1 lakh
b) Rs. 2 lakhs
c) Sum Insured as per SOF × Insured Area
d) The loan amount from the bank
e) 10% of annual farm income

2. At 20% adverse deviation in rainfall, what approximate percentage of sum insured does the farmer receive as claim?

a) 0.1
b) 0.15
c) 0.2
d) 0.25
e) 0.3

3. Which countries have introduced strict restrictions or bans on UAV use?

a) USA, UK, and Australia have introduced strict bans
b) China, Russia, and Brazil have introduced strict bans
c) Germany, France, and Italy have introduced strict bans
d) Japan, South Korea, and Singapore have introduced strict bans
e) Countries like India, Nepal, and Kenya have introduced strict restrictions or bans meant to be lifted at a later, yet-to-be-determined date

4. How are crop and forest fires caused?

a) Only by lightning strikes during electrical storms
b) Only by human carelessness and arson
c) Both by human action (and carelessness) and also by lightning strikes during electrical storms
d) Only by spontaneous combustion in dry conditions
e) Mainly by crop burning practices and animal activity

5. How much of India's total land area is perennially drought prone?

a) Nearly 10% of India's total land area
b) Nearly 15% of India's total land area
c) Nearly 20% of India's total land area
d) Nearly 25% of India's total land area
e) Nearly 30% of India's total land area

6. What is the insurer's liability percentage for silkworm claims?

a) 60% of sum insured or market value
b) 70% of sum insured
c) 80% of sum insured or market value whichever is less, with adjustments by stage
d) 100% of losses
e) 90% for all stages uniformly

7. What is described as the largest barrier to drone's wider adoption in the agricultural industry?

a) The high cost of UAV equipment and maintenance
b) The lack of technical knowledge among farmers
c) The opposition from traditional loss assessors
d) Regulatory barriers, as nations grapple with the problem of keeping UAVs legal while securing air safety and privacy rights
e) The resistance from insurance companies

8. What type of losses does Silkworm Insurance cover?

a) Any type of loss including natural mortality
b) Death of silkworm due to accident or disease contracted during the period of insurance; cover is in respect of total loss only
c) Partial loss and natural mortality
d) Only losses due to disease, not accidents
e) Only losses during cocoon stage

9. What fraction of India's population lives in rural areas?

a) 46054
b) 46083
c) 46115
d) 46146
e) 46082

10. Why is drought considered the natural weather event causing most problems for insurers in India?

a) It only affects a few farmers each year
b) Without water, plant growth can slow down, stop, and if prolonged, the plant will die; also it is hard to insure
c) It is limited to one geographic region
d) It causes instantaneous and easily measurable damage
e) It is always covered under standard insurance policies