SSC CGL 2024 Tier-I · 17 September 2024, Shift 3 · General Awareness · Question 20 of 98

Text as printed on a candidate's response sheet for this shift; answer per SSC's tentative key as marked on that sheet. Solution last reviewed 6 September 2026.

Where this paper and its answers come from

SSC does not publish CGL question papers or a public answer key. The questions and options here are reproduced as printed on a candidate's own response sheet for this shift — the Commission's text, unchanged. Each answer is SSC's tentative key as marked on that sheet; SSC allowed challenges to it and never publishes a final key. The solutions are written by UnlockIAS.

Under Pradhan Mantri Fasal Bima Yojana, the maximum premium payable by the farmers will be _________ for all kharif food and oilseeds crops.

(a)6%
(b)8%
(c)2%
(d)4%

Answer

Why

Correct — C. Under Pradhan Mantri Fasal Bima Yojana the farmer's share of the premium is capped at 2 per cent of the sum insured for all Kharif food crops and oilseeds.

The cap is set by season and crop type, not by farmer or by state: 1.5 per cent for Rabi food crops and oilseeds, and 5 per cent for annual commercial and horticultural crops.

Whatever the actuarial premium works out to above that cap, the Centre and the state governments pay between them as subsidy. For a Kharif food-and-oilseed stem the figure is option (c).

Why the others are wrong

(a)
6% — 6 per cent is not a rate under this scheme. The highest farmer share PMFBY sets anywhere is 5 per cent, and that is for annual commercial and horticultural crops, not for Kharif food grains.
(b)
8% — 8 per cent is above every cap in the scheme. PMFBY's whole design is that the farmer pays a small fixed share while the governments absorb the rest of the actuarial premium.
(d)
4% — 4 per cent sits between the real slabs and matches none of them. The Kharif food and oilseed cap is 2 per cent.

Concept

PMFBY is the crop insurance scheme that replaced the National Agricultural Insurance Scheme and its modified version, and it runs on a fixed-share model.

The farmer pays a capped percentage of the sum insured — 2 per cent for Kharif food crops and oilseeds, 1.5 per cent for Rabi food crops and oilseeds, 5 per cent for annual commercial and horticultural crops.

The insurer quotes an actuarial premium; the gap between that and the farmer's share is the premium subsidy, shared by the Centre and the state. Cover runs from prevented sowing through the standing crop to post-harvest losses, and takes in localised risks such as hailstorm, landslide and inundation.

Read the crop type before you reach for the number. The scheme carries three caps, and a stem that changes Kharif to Rabi, or to commercial and horticultural crops, changes the right answer without changing anything else in the sentence.

Key facts

Under PMFBY the farmer's premium is capped at 2 per cent of the sum insured for Kharif food crops and oilseeds.
The cap is 1.5 per cent for Rabi food crops and oilseeds.
The cap is 5 per cent for annual commercial and horticultural crops.
PMFBY replaced the National Agricultural Insurance Scheme and the Modified NAIS, and ran from the Kharif 2016 season.

Study next

The premium subsidy and how the Centre and the states split it under PMFBYRisks covered by PMFBY, from prevented sowing to post-harvest lossThe Restructured Weather Based Crop Insurance Scheme and how it differs from PMFBY

Common traps

Applying the Rabi cap of 1.5 per cent to a Kharif stem, or the reverse.
Reading the percentage as a share of the premium when it is a share of the sum insured.

SSC asks schemes as a single number to be recalled rather than a policy to be discussed: the Centre-state cost-sharing ratio under Pradhan Mantri Gramin Awaas Yojana is asked at 9 Sep 2024, 4:00 pm, GA Q.16, and the annual amount under PM Kisan Samman Nidhi at 17 Sep 2024, 9:00 am, GA Q.25.

Related PYQs

No directly related past PYQ was found.