S09-Crop Insurance Mock Test 11
Crop insurance is an important risk management tool, particularly for commercial farmers who want to protect their agricultural investments and ensure business continuity. UAVs equipped with specialized sensors can collect multispectral NDVI and infrared imagery, helping identify crop changes invisible to the human eye. Some states may be dissatisfied with weather insurance because premiums, including subsidies, may be retained by insurers during years with normal weather. Farm size influences operating efficiency, with larger concentrated farms potentially reducing insurance costs per unit area. Revamped PMFBY introduced two-step yield estimation. Effective loss adjustment requires competent and independent assessors. Varsha Bima uses rainfall-based payout rates, while accurate yield estimation gained importance under CCIS.
1. Why do commercial farmers in insurable crop schemes have high motivation to use crop insurance?
a) They are legally required to buy crop insurance
b) They are intent on protecting their investment and use crop insurance as another risk management tool to ensure business success
c) They receive government incentives only
d) The bank forces them to buy insurance with every loan
e) They want to make profit from insurance claims
2. What special sensors can UAVs use to collect multispectral data?
a) UAVs can only use standard visible light cameras
b) UAVs can only use thermal imaging sensors
c) UAVs equipped with special sensors can inexpensively collect multispectral Normalised Density Vegetation Index (NDVI) and infrared (IR) images, permitting farmers to view crop changes otherwise invisible to the human eye
d) UAVs can only use sonar and radar sensors
e) UAVs can only use GPS and accelerometer sensors
3. Why are some states not pleased with government-supported weather insurance?
a) Because claims settlement takes too long
b) Because during normal (good) years, the premium including the subsidy is retained by the insurer
c) Because insurance companies don't participate enough
d) Because premium rates are too high
e) Because coverage excludes some important crops
4. The Farm Income Insurance Scheme (FIIS) was introduced on a pilot basis during which season?
a) Kharif 2001-02
b) Kharif 2002-03
c) Rabi 2003-04
d) Kharif 2004-05
e) Rabi 2005-06
5. How does farm size affect crop insurance operations?
a) Smaller farms are always preferred
b) Farm size has no effect on insurance operations
c) Larger, concentrated farms give the insurance organization greater opportunity to reduce operating costs per unit area insured
d) Smaller farms have lower premium rates
e) Larger farms always get more coverage
6. What does 'Two step estimation of yield' refer to in Revamped PMFBY?
a) Two different insurance companies estimating yield
b) Two-stage crop cutting experiments for accurate yield estimation
c) Yield estimation done by both central and state governments
d) Yield estimated first by satellite then by manual counting
e) Yield estimated once before sowing and once after harvest
7. How do loss adjustment systems address the moral hazard faced by assessors?
a) By paying assessors very low wages
b) By only using government employees as assessors
c) By having farmers self-assess their losses
d) By banning assessors from entering farms alone
e) By ensuring the loss assessor is competent, confident, independent, supported by fellow assessors, and able to refer to arbitration
8. In the Varsha Bima payout structure, what is the payment rate (Rs./MM) for rainfall range 640-682 MM?
a) 5
b) 7.5
c) 10.77
d) 13.32
e) 16.47
9. What information does the assessor receive from the central office of the loss adjustment firm or insurer as pre-assessment activities?
a) Name, location, crop, policy number/copy, plus relevant details (deductible, percentage cover etc.), and some schemes may also include details of the assessment team members
b) Only the farmer's name and address
c) Only the policy number and sum insured
d) Only the crop type and area insured
e) Only the date and time of the assessment
10. Which scheme introduced in 1985 further increased importance of yield estimation?
a) NAIS
b) PMFBY
c) CCIS - Comprehensive Crop Insurance Scheme
d) MNAIS
e) WBCIS
