UPSC Prelims 2004 Q76: Indian Economy – Agriculture & Rural Development
Consider the following statements:
1. The loans disbursed to farmers under Kisan Credit Card Scheme are covered under Rashtriya
Krishi Beema Yojna of Life Insurance Corporation of India.
2. The Kisan Credit Card holders are provided personal accident insurance of Rs 50,000 for
accidental death and Rs 25,000 for permanent disability.
Which of these statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (b) 2 only
Explanation
Kisan Credit Card scheme and insurance
| Statement | Verdict |
|---|---|
| 1. KCC loans are covered under Rashtriya Krishi Beema Yojana of LIC | False: crop loans were covered by the National Agricultural Insurance Scheme, run by the General Insurance Corporation |
| 2. Personal accident insurance Rs 50,000 on death and Rs 25,000 on permanent disability | True — the personal accident cover for KCC holders |
Only statement 2 is correct.
Answer: (b) 2 only.
Why each option is right or wrong
- (a) Incorrect. Statement 1 names the wrong scheme and insurer.
- (b) CORRECT. Only statement 2 is correct.
- (c) Incorrect. Statement 1 is not correct.
- (d) Incorrect. Statement 2 is correct.
Key point
KCC: crop loans, with personal accident insurance of Rs 50,000 on death and Rs 25,000 on disability.
Remember
KCC holders get personal accident insurance of Rs 50,000 on death.
Common mistakes
- Linking KCC loans with LIC crop insurance.
- Confusing the NAIS with life insurance schemes.
- Quoting the accident cover figures wrongly.
Exam tip
NAIS: General Insurance Corporation and Agriculture Insurance Company.
Sources
- NABARD — Kisan Credit Card scheme
- Ministry of Agriculture, Government of India — National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana), 1999