Question
In the context of PMFBY, what does the term "Sum
Insured" refer to? Read the passage below and answer the following questions based on the passage ( Q no 15 to 18) Crop insurance in India plays a crucial role in safeguarding the livelihoods of millions of farmers who are vulnerable to the unpredictabilities of agriculture. As agriculture forms the backbone of the Indian economy, providing employment to nearly half of the population, ensuring its stability is vital. Crop insurance has emerged as an essential tool to protect farmers from financial losses caused by natural disasters, erratic weather patterns, pest infestations, and other unforeseen events that impact agricultural productivity. In a country where farming largely depends on the monsoon, the importance of crop insurance becomes even more pronounced. Indian farmers, particularly small and marginal ones, often bear the brunt of climate change and unpredictable weather, including droughts, floods, and cyclones, which can destroy entire crops. When crops fail due to these factors, farmers are left without income, often pushing them into severe debt and poverty. Crop insurance helps mitigate this risk by compensating farmers for their losses, ensuring they can recover and continue farming. Moreover, crop insurance encourages farmers to adopt modern agricultural techniques and make investments in their farms. When farmers know they have a safety net, they are more likely to take the risk of planting higher-yield crops, using better seeds, and employing improved irrigation techniques. This not only boosts individual productivity but also contributes to national food security by improving overall agricultural output.Solution
The Sum Insured is the maximum amount that an insurance company will pay to the farmer in case of a covered loss.
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