Question

A farmer growing a horticultural crop under PMFBY pays a premium of 5% of the sum insured. If the sum insured is ₹1,00,000, how much does the farmer pay as premium, and how much is shared between Centre and State?

A Farmer pays ₹2,000; Centre and State share ₹98,000
B Farmer pays ₹5,000; Centre and State each share 50% of the remaining actuarial premium
C Farmer pays ₹5,000; Centre pays 75% of balance; State pays 25% of balance
D Farmer pays ₹1,500; Centre and State share balance equally
E Farmer pays ₹5,000; Centre pays the entire balance premium
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