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 insu

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Q: 76 (IAS/2004)
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 the statements given above is/ are correct?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,25,115,34,25,64,17

keywords: 

{'kisan credit card holders': [0, 0, 1, 0], 'kisan credit card scheme': [0, 0, 0, 1], 'rashtriya krishi beema yojna': [0, 0, 1, 0], 'personal accident insurance': [0, 0, 1, 0], 'life insurance corporation': [0, 0, 4, 1], 'accidental death': [0, 0, 1, 0], 'permanent disability': [0, 0, 1, 0], 'rs': [0, 0, 9, 3], 'loans': [1, 1, 4, 14]}

The correct answer is option 2, indicating that only statement 2 is correct.

Statement 1 is incorrect because the Kisan Credit Card (KCC) Scheme and the Rashtriya Krishi Beema Yojna are two separate schemes. The loans disbursed under KCC are not covered under the Rashtriya Krishi Beema Yojna of Life Insurance Corporation of India. KCC provides farmers with credit for their farming and related needs, while Rashtriya Krishi Bima Yojana is a crop insurance scheme to provide insurance coverage in case of crop failure due to natural calamities or pests.

In contrast, statement 2 is correct. Kisan Credit Card does include a personal accident insurance cover. As the statement mentions, it covers Rs. 50,000 in case of accidental death and Rs. 25,000 for permanent disability. This is an added benefit to provide financial security to the KCC holders in case of unforeseen events.

In conclusion, Kisan Credit Card not only provides credit to farmers but also gives a cushion of safety through personal accident insurance.