Question

Which one of the following is not true about Pradhan Mantri Fasal Bima Yojana (PMFBY)?

• A. Cover all food and oilseed crops, annual commercial/ horticulture crops
• B. Compulsory for loanee farmer of crop loan and Kishan credit card (KCC)
• C. The lowest unit of implementation under Area Approach Basis is village/ village panchayat
• D. Implemented by only public sector insurance companies

Hint:

In competitive exams, be cautious of extreme words like "only" or "always". Large-scale government programs like PMFBY frequently involve private-sector participation to improve operational efficiency and share financial risks.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship crop insurance scheme introduced in 2016 to provide comprehensive insurance cover against crop failure, helping stabilize the income of farmers.

Step 3: Detailed Explanation:
Let us evaluate each of the statements:
- Option (A): PMFBY covers all food crops (cereals, millets, pulses), oilseeds, and annual commercial/horticultural crops. This is true.
- Option (B): Initially, the scheme was compulsory for loanee farmers holding Crop Loans or Kisan Credit Card (KCC) accounts, though it was made voluntary for all farmers starting from the Kharif 2020 season. However, compared to Option (D), this has been a central administrative component of the scheme.
- Option (C): Under the Area Approach Basis, the defined "Insurance Unit" (IU) is downscaled to the level of Village or Village Panchayat for major crops. This is true.
- Option (D): The scheme is implemented by the Agriculture Insurance Company of India (AIC) alongside several empanelled private sector general insurance companies (such as ICICI Lombard, HDFC ERGO, etc.) selected through competitive bidding. Therefore, the assertion that the scheme is implemented by *only* public sector insurance companies is incorrect.

Step 4: Final Answer:
The statement that is not true is option (D).