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Directions: Read the following passage carefully and choose the best answer to the given question out of the four alternatives.
Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.
This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.
All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.
Q. Around 90% of the overall area under food grains
  • a)
    has so far benefited from crop insurance
  • b)
    is not presently under crop insurance
  • c)
    is under kharif crop
  • d)
    is subject to uncontrollable risks
Correct answer is option 'B'. Can you explain this answer?
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Directions:Read the following passage carefully and choose the best an...
"The total insured crop area is only about 10% of the overall area under food grains."
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Not presently under crop insurance:
India has a total insured crop area of only about 10% of the overall area under food grains, indicating that around 90% of the overall area under food grains is not presently under crop insurance.

Reasons for low coverage:
- Despite the dependence of more than 60% of India's labor force on agriculture, crop insurance only accounts for less than 2% of income generated from agriculture in a year.
- The vagaries of the monsoon and uncontrollable risks in Indian agriculture make it difficult to provide effective crop insurance.

Participation of major states:
- States like Punjab, Haryana, and Rajasthan, which account for 19% of the total food grain area in the country, have not participated in the crop insurance scheme.
- On the other hand, all other major food crop-producing states are part of the National Agriculture Insurance Scheme (NAIS), covering 74% of the overall food grain area.

Claims and premiums:
- Almost all the claims made under the NAIS have been in the kharif season, with rabi season claims accounting for less than 1% of the total claims.
- Despite the majority of claims being from the kharif season, a proportionately lower premium is paid during this season, with 86% of total premiums coming from it, while claims from this season account for 99% of total claims.
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Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives. Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains. This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well. All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims. Q.Most of the major food crop-producing states

Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer?
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Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer? for JEE 2025 is part of JEE preparation. The Question and answers have been prepared according to the JEE exam syllabus. Information about Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for JEE 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for JEE. Download more important topics, notes, lectures and mock test series for JEE Exam by signing up for free.
Here you can find the meaning of Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions:Read the following passage carefully and choose the best answer to the given question out of the four alternatives.Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains.This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme. These account for 19% of the total food grain area in the country. Presumably, the area as well as sum insured would have been far larger if these states had participated as well.All the other major food crop-producing states are part of the NAIS. They account for 74% of the overall food grain area. NAIS data suggests that almost all the claims made so far have also been in the kharif season, with rabi season claims accounting for less than 1% of the total claims. This is understandable given that India has had at least two major droughts since the initiation of NAIS. However, a proportionately lower premium is paid during the kharif season, which accounts for 86% of total premiums while claims from this season are 99% of total claims.Q.Around 90% of the overall area under food grainsa)has so far benefited from crop insuranceb)is not presently under crop insurancec)is under kharif cropd)is subject to uncontrollable risksCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice JEE tests.
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