Pradhan Mantri Fasal Bima Yojana MCQ - Practice Questions with Answers

Option D is incorrect. Threshold Yield is not the single highest yield and is not calculated without an indemnity factor. It equals the average yield of the best 5 of the last 7 years multiplied by the notified indemnity level of 70%, 80% or 90%. Actual yield below that threshold triggers the yield-shortfall calculation.

All four statements are correct. PMFBY caps the farmer's share at 2% for Kharif food and oilseed crops, 1.5% for Rabi food and oilseed crops, and 5% for annual commercial or horticultural crops. The Kharif 2020 reform also made participation voluntary for every farmer category, including loanee farmers.

For Rabi food and oilseed crops, the farmer's premium is capped at 1.5% of the sum insured. The corresponding caps are 2% for Kharif food and oilseed crops and 5% for annual commercial or horticultural crops; government subsidy meets the balance actuarial premium.

PMFBY became fully voluntary for all farmers from Kharif 2020, including farmers with crop loans. A loanee farmer may opt out by giving the financing bank a written declaration at least 7 days before the notified cut-off date; the earlier compulsory rule for loanees no longer governs participation.

Statement 1 is correct: specified post-harvest losses are covered for crops left cut and spread in the field for drying for up to 14 days after harvest. Statement 2 is incorrect because hailstorm, landslide, inundation, cloudburst and natural fire due to lightning are assessed at individual farm level, not exclusively by an area approach.