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      Question

      Pradhan Mantri Fasal Bima Yojana (PMFBY) provides

      comprehensive crop insurance to farmers. Evaluate the following statements: I. Under PMFBY, the maximum premium payable by a farmer is 2% of the sum insured for Kharif food and oilseed crops, 1.5% for Rabi food and oilseed crops, and 5% for annual commercial and horticultural crops. II. PMFBY mandatorily covers all farmers with outstanding crop loans from banks, who cannot opt out of the scheme under any circumstances. III. From Kharif 2026 onwards, wild animal attacks and paddy inundation have been added as new add-on covers under the localised risk category. IV. From Kharif 2025, all participating states are required to open an ESCROW account and deposit their premium share in advance to ensure timely release of claims. Which of the above are correct?
      A I and II only Correct Answer Incorrect Answer
      B I and IV only Correct Answer Incorrect Answer
      C I, III and IV only Correct Answer Incorrect Answer
      D II, III and IV only Correct Answer Incorrect Answer
      E I, II, III and IV Correct Answer Incorrect Answer

      Solution

      Statement I is correct these are the prescribed maximum farmer premium rates under PMFBY: 2% for Kharif food/oilseed crops, 1.5% for Rabi food/oilseed crops, and 5% for commercial/horticultural crops. The balance actuarial premium is shared by central and state governments. Statement II is incorrect while loanee farmers (those with crop loans/KCC) are enrolled by default, they have been given an opt-out option since 2020. Enrollment is no longer compulsory for them. Statement III is correct wild animal attacks and paddy inundation have been added as new add-on covers under the localised risk category from Kharif 2026. Statement IV is correct from Kharif 2025, states must open ESCROW accounts and deposit their premium share in advance to ensure claims are not delayed.

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