1. Headquarters of Life Insurance Corporation of India (LIC)is located in which of the following cities?

A. New Delhi B. Kolkata C. Chennai D. Mumbai E. Bengaluru

2. What do you understand by term ‘Riders’ used in Insurance sector?

A. Third Party insurance benefits B. Co-insurance compulsory benefits C. Reinsurance conditions D. Conditions by regulator on insurer E. Optional add-on benefits linked with policy

3. What is the tagline of the Bharti AXA General Insurance Company Limited?

A. Suraksha ka Naya Nazariya B. Jeevan Suraksha Samanya Surksha C. Sabka Suraksha Hamare Sath D. Sabse Bada Rishta Hamara E. None of the above

4. In which of the following year Life Insurance Companies Act was passed?

A. 1890 B. 1900 C. 1910 D. 1912 E. 1915

5. The authority of IRDAI consists of __________ members.

A. 10 B. 8 C. 5 D. 12 E. 15

Answers and Explanations
1. Answer - Option D
Explanation -
Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and investment company, headquartered in Mumbai.
2. Answer - Option E
Explanation -
‘Riders’ in a financial context actually means an optional insurance linked benefit, purchased separately at an additional premium. Riders help the insured customize the policy to fit his or her specific needs.
3. Answer - Option A
Explanation -
The Bharti AXA General Insurance Company was established in the year 2008. It is headquartered in Mumbai, Maharashtra. It is a joint venture between Bharti Group and AXA business group. The tagline of the comapny is: Suraksha ka Naya Nazariya.
4. Answer - Option D
Explanation -
In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer. At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business.
5. Answer - Option A
Explanation -
As per the section 4 of IRDAI Act’ 1999, Insurance Regulatory and Development Authority of India (IRDAI), the Authority is a 10 members team consisting of a Chairman, five whole-time members and four part-time members. All the members are appointed by the government. The present chairman of IRDAI is Subhash Chandra Khuntia.

1. ________ recommended inclusion of private players in the insurance sector.

A. R.N. Malhotra committee B. P.J. Nayak committee C. Y.V. Reddy committee D. S.C. Khuntia committee E. None of the above

2. Which of the following is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued?

A. Certificate of insurance B. Assets note C. Cover note D. Insurance policy document E. None of the above

3. Which among the following is an insurance policy meant for people who are not able to pay larger premium for whole life policies initially but want to switch to a permanent policy later?

A. Convertible Insurance Policy B. Pure Endowment Policy C. Term Policy D. Pure Term Policy E. None of the above

4. Which among the following policy covers the risk arising out of injury or death to a third party by a vehicle?

A. Comprehensive Motor Policy B. Third Party Insurance C. Own Damage Policy D. Package Policy E. None of the above

5. Life Insurance Corporation of India has signed an agreement with Central Depository Services to provide ___________ coverage to demat account holders

A. Whole Life Insurance B. Motor Insurance C. Liability Insurance D. Group Insurance E. Health Insurance

Answers and Explanations
1. Answer - Option A
Explanation -
R.N. Malhotra committee: Reforms in the Insurance Sector (1993)
Key Recommendations
Private players should be included in the insurance sector
Foreign companies should be allowed to enter the insurance sector, preferably through joint ventures with Indian partners.
The Insurance Regulatory and Development Authority (IRDA) be constituted as an autonomous body to regulate and develop the insurance sector.
2. Answer - Option C
Explanation -
A cover note is a temporary document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued. A cover note is different from a certificate of insurance or an insurance policy document. A cover note features the name of the insured, the insurer, the coverage and what is being covered by the insurance.
3. Answer - Option A
Explanation -
Convertible Insurance Policy is such that it can be converted from a term policy to a whole life policy. This is meant to cater to the needs of people who are not comfortable with payment of large premiums towards the whole life policy, at the initial stage but want to convert to whole life policy at a later stage.
4. Answer - Option B
Explanation -
Insurance for motor vehicles can be divided into two types – own damage cover and the third party cover. Own damage cover is meant to insure any loss to the vehicle whereas the third party cover is meant to cover for death or injury to any third party by a vehicle. Third party insurance is compulsory in India under the Motor Vehicles Act 1988.
5. Answer - Option D
Explanation -
Life Insurance Corporation of India has signed an agreement with Central Depository Services (India) to provide group insurance coverage to all eligible Demat account holders between the age of 18 years and 59 years. The scheme would provide a cover of ₹1 lakh to a maximum of ₹5 lakh for any single individual at a very nominal price.

1. Which of the following plans are not offered by LIC?

A. Navjeevan B. Bhagyashree C. Aadhaar Shila D. Bhagya Lakshmi E. Micro Bachat

2. __________ General Insurance gets preliminary approval from the IRDAI to start non-life insurance.

A. Srei B. Share Khan C. Zerodha D. India-bulls E. Paytm Money

3. Ravi has a life policy with an amount assured for Rs. 10 lakhs. He pays a quarterly premium of Rs. 1000 to the insurance company on the first of every quarter. But due to some unavoidable circumstances he was unable to pay it for the current quarter. What action would the insurance company will take?

A. The policy will be lapsed B. A grace period of 15-30 days will be given C. A statutory warning will be issued D. The company will deduct the premium from his funds E. None of the above

4. The number of life insurers in the country as on March 2018 (IRDAI Annual Report) is _____

A. 33 B. 24 C. 27 D. 8 E. 68

5. According to the IRDAI guidelines, what is the minimum basic sum insured under the standard Mediclaim product?

A. Rs 100000 B. Rs 50000 C. Rs 1000000 D. Rs 500000 E. Rs 750000

Answers and Explanations
1. Answer - Option B
Explanation -
The Maharashtra government launched the Bhagyashree scheme for the upliftment of female child belonging to a BPL family.
It will provide an insurance coverage of Rs 1 Lakh to the female children when they turn 18. When a girl is born, the government will make a Bhagyashree account in the girl’s name and will deposit an amount of Rs 21,200 which will simply become Rs 1 Lakh when the girl reaches 18.
2. Answer - Option D
Explanation -
India-bulls General Insurance, a subsidiary of India-bulls Integrated Services has received preliminary approval from the Insurance Regulatory and Development Authority of India (IRDAI) to start non-life insurance. India-bulls Life Insurance received approval in January.
3. Answer - Option B
Explanation -
An Insurance Company usually gives a grace period of 15-30 days to the insured if they fail to pay the premium before the due date. Further, the policy will be lapsed if he fails to pay the premium after the grace period. It can be revived by paying the outstanding premium along with the interest, counted from the date the policy got lapsed.
If the policy is in force for a longer period like 2-3 years and premium is not paid till the time, then the insurance company will deduct the premium amount from the accumulated funds till their utilization.
4. Answer - Option B
Explanation -
At the end of March 2018 as per the IRDAI’s Annual Report, there are 68 insurers operating in India, of which 24 are life insurers, 27 are general insurers, 6 are Standalone health insurers exclusively doing health insurance business and 11 are re-insurers including foreign reinsurers branches and Lloyd’s India.
5. Answer - Option B
Explanation -
According to the draft guidelines of IRDAI, the Mediclaim product will have the basic mandatory covers & no additional/add-on covers will be allowed. The minimum basic sum insured under standard product shall be Rs 50000 with a maximum limit of Rs 10 lakh.