Question

Under the Pradhan Mantri Fasal Bima Yojana (PMFB

  • Y , the 'actuarial premium' (the true risk-based premium determined by insurance companies) is generally much higher than the premium rate actually paid by farmers (1.5% to 5% depending on the crop/season). Who bears the difference between the actuarial premium and the farmer's share?
A Shared between the Central and State Governments as a premium subsidy
B Borne entirely by the insurance company as a loss
C Borne entirely by the bank disbursing the crop loan
D Borne entirely by NABARD
E There is no difference; farmers always pay the full actuarial premium
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