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Question

Consider the following statements with respect to Pradhan Mantri Fasal Bima Yojana (PMFBY) :
1. PMFBY provides risk insurance to farmers against crop damage due to non-preventable natural risks.
2. PMFBY provides risk coverage of ₹ 2 lakh in case of death of the insured.
3. PMFBY ensures flow of credit to the agriculture sector.
4. PMFBY provides risk coverage of ₹ 2 lakh for complete disability of the insured.
Which of the statements given above is/are correct ?

This question was previously asked in
CDS 2 2026 Maths Question Paper (13-Sep-2026)
The correct answer is
1 and 3

PMFBY Statements Analysis

This section analyzes the given statements regarding the Pradhan Mantri Fasal Bima Yojana (PMFBY) to determine correctness.

Statement 1: Crop Risk Insurance

  • The Pradhan Mantri Fasal Bima Yojana (PMFBY) is fundamentally a risk insurance scheme for farmers.
  • It provides coverage against crop loss and damage caused by predictable and unpredictable events, including various non-preventable natural risks like floods, droughts, hailstorms, and unseasonal rains.
  • Therefore, statement 1 is correct.

Statement 2: Death Coverage

  • PMFBY's primary objective is crop insurance, safeguarding farmers from financial losses due to crop failure.
  • Coverage for death of the insured farmer is generally associated with life insurance schemes, not the core benefits of PMFBY.
  • Thus, statement 2 is incorrect.

Statement 3: Credit Flow Assurance

  • By mitigating the financial risks associated with crop failure, PMFBY significantly improves farmers' financial stability and creditworthiness.
  • This enhanced creditworthiness facilitates easier access to institutional credit, thereby supporting the sustained flow of credit to the agriculture sector.
  • Consequently, statement 3 is correct.

Statement 4: Disability Coverage

  • Similar to statement 2, PMFBY does not typically include coverage for complete disability as a standard feature.
  • The scheme focuses specifically on indemnifying farmers for losses incurred on their crops.
  • Hence, statement 4 is incorrect.

Conclusion

Based on the analysis, statements 1 and 3 correctly describe the functions and impact of the Pradhan Mantri Fasal Bima Yojana.

The correct option includes statements 1 and 3.

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