1. The Insurance Regulatory and Development Authority of India came up as per the recommendations of which among the following committees?

A. R N Malhotra Committee B. R D Sharma Committee C. Y C Shah Committee D. F D Ghosh Committee E. None of the above

2. The Modi govt has launched which Yojana to expand the coverage of Postal Life Insurance?

A. Sampoorna Bima Gram Yojana B. Gramin Bima Yojana C. Kisan Bima Yojna D. Karib Kalyan Bima Yojna E. None of the above

3. IBNR is a popular term in the insurance industry. It is expanded as –

A. Incurred But Not Reported B. Incurred But Not Resisted C. Incurred But Not Repeated D. Incurred But Not Rectified E. None of the above

4. Which among the following is an insurance policy in which the sum assured becomes due after a specific period of time or on the death of the insured, whichever is earlier?

A. Term Policy B. Endowment Policy C. Mediclaim Policy D. Death Benefit Policy E. None of the above

5. Which telecom company has offered a free life insurance to all its customers?

A. Airtel B. Vodafone C. Idea D. Telenor E. BSNL

Answers and Explanations
1. Answer - Option A
Explanation -
The R N Malhotra Committee was appointed in the year 1993 in order to recommend ways in which the insurance sector can be developed in India.
This committee recommended formation of the Insurance Regulatory and Development Authority of India which came up in 2000.
The objective of the IRDAI is to develop and promote the insurance sector in India.
2. Answer - Option A
Explanation -
The Modi govt has launched Sampoorna Bima Gram Yojana and expanded the coverage of Postal Life Insurance. With this, apart from government employees, PLI will now cover professionals also.
Under this yojana, at least one village (having a minimum of 100 households) will be identified in each of the revenue districts of the country. This was done by Minister for Communications Manoj Sinha.
3. Answer - Option A
Explanation -
The IBNR, which is the abbreviated form of Incurred But Not Reported (IBNR), are the reserves for claims that become due with the occurrence of the events covered under the insurance policy but have not been reported yet.
4. Answer - Option B
Explanation -
Term Policy is a type of insurance policy that is valid for a particular term as specified in the policy.
Endowment policy is such that the sum assured is payable on the date of maturity or on the death of the insured, whichever is earlier.
Mediclaim Policy is given in order to cover the medical expenses incurred due to hospitalization and other medical issues.
Death Benefit Policy is such that the sum assured is payable on the death of the insured person.
5. Answer - Option D
Explanation -
Telenor India is offering free life insurance to all its customers, a first in India’s highly competitive telecom market where the company is using the offer to attract new subscribers and retain the existing ones. Both existing and new customers will get insurance cover ranging from 5,000 to 50,000. The premium will be paid by the company Other telecom players have also come up with attractive plans.

1. Muthoottu Mini Financiers Limited has signed a Bancassurance Corporate Agency Agreement with which General Insurance Company recently?

A. Bajaj Allianz General Insurance Company B. HDFC ERGO General Insurance Company C. General Insurance Corporation (GIC) D. L&T General Insurance Company Limited E. Max Life Insurance Company Limited

2. IGMS is an online consumer complaints registration system created by IRDA. What does ‘l’ stands for in acronym IGMS?

A. Insurance B. Integrated C. Indian D. Indemnity E. Index

3. Sumit invests Rs. 120000 in an insurance policy, 50000 Rs. in a PPF account. He also invests Rs. 35000 in fees each of his two children. Then how much of his amount is tax exempted under section 80C?

A. Rs. 90000 B. Rs. 100000 C. Rs. 150000 D. Rs. 205000 E. Rs. 240000

4. Which of the following is not a function of IRDAI?

A. Protecting policyholders’ interests B. Regulating and overseeing premium rates C. Registering and regulating insurance companies D. Regulate the activities of stock market E. Licensing and establishing norms for insurance intermediaries

5. According to guidelines issued on Standard Health Product recently by IRDA, the maximum basic sum insured under standard product shall be Rs. ______.

A. 5 lacs B. 10 lacs C. 15 lacs D. 20 lacs E. 25 lacs

Answers and Explanations
1. Answer - Option B
Explanation -
Kerala based Muthoottu Mini Financiers Limited, a non-deposit taking systemically important NBFC (Non-Banking Financial Company), partnered with HDFC ERGO General Insurance Company to provide comprehensive general insurance for the its customers.
2. Answer - Option B
Explanation -
The Integrated Grievance Management System (IGMS) is an online consumer complaints registration system created by IRDA. All insurance companies have integrated their online complaint logging systems to the IGMS maintained by IRDA. Policyholders can register their complaints online with their insurance company and track the progress of complaint resolution. IRDA monitors the complaints and their progress in real-time through IGMS.
3. Answer - Option C
Explanation -
The individuals who are eligible to pay taxes can claim income tax deductions up to Rs. 1.5 lakh per year as per section 80C.
Total investment of Sumit = 120000 + 50000 + 2 × 35000 = Rs. 240000 >Rs. 1.5 lakh
Therefore, amount exempted from tax under section 80c will be Rs. 1.5 lakh only.
4. Answer - Option D
Explanation -
The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India. The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999 and include, issuing, renewing, modifying, withdrawing, suspending or cancelling registrations, protecting policyholder interests among others.
5. Answer - Option B
Explanation -
IRDA has issued the Guidelines on Standard Health Product under the provisions of Section 34 (1) (a) of Insurance Act, 1938. The minimum basic sum insured under standard product shall be Rs. 50000. Maximum limit shall be Rs. 10 lacs. The minimum entry age shall be 18 years for principal insured and maximum age at entry shall be 65 years.

1. Which of the following company has decided to dedicate the 6th day of each month as ‘Protection Day’?

A. Apollo Munich Insurance B. Bajaj Allianz General Insurance C. Bharti AXA General Insurance D. HDFC ERGO General Insurance E. Max Life Insurance Company

2. LIC’ _________ plan provides for automatic increase in risk cover after every five years during the term of the policy.

A. Jeevan Pragati B. Jeevan Labh C. New Jeevan Anand D. Aadhaar Stambh E. Jeevan Umang

3. What do you mean by term “Underwriting’’ used in insurance sector?

A. Licensing to insurance firms B. Writing the contract between insurer and re-insurer C. Process of assessing risks for insurance D. Assessing annual average cost of premium E. Assessing the total benefits post maturity of policy

4. Bharti AXA Life Insurance has tied up with payment bank to offer Bharti AXA Life POS (Point of Sale) Saral Jeevan BimaYojana, recently?

A. Airtel Payments Bank B. Indian Post Payments Bank C. Fino Payments Bank D. Jio payments Bank E. Paytm Payments Bank

5. In case of loss against which the policy has been insured, the insured shall be paid the cost of actual cost of loss, not exceeding the amount of Insurance policy. Which of the following principle of Insurance imply the same?

A. Principle of Indemnity B. Principle of Cause Maxima C. Principle of Mitigation D. Principle of Subrogation E. Principle of Contribution

Answers and Explanations
1. Answer - Option E
Explanation -
Max Life Insurance Co Ltd will commemorate the 6th day of each month as ‘Protection Day’ to raise awareness on financial protection.
2. Answer - Option A
Explanation -
LIC’ Jeevan Pragati plan provides for automatic increase in risk cover after every five years during the term of the policy. In addition, this plan also takes care of liquidity needs through loan facility
3. Answer - Option C
Explanation -
Underwriting is the process of assessing proposals/risks for insurance. Underwriting involves measuring risk exposure and determining the premium that needs to be charged to insure that risk.
4. Answer - Option A
Explanation -
Airtel Payments Bank has partnered with Bharti AXA Life Insurance to offer Bharti AXA Life POS (Point of Sale) Saral Jeevan BimaYojana. It is a pure life term insurance plan up to Rs 5 lakh which is aimed at the under-insured and uninsured segments in India.
5. Answer - Option A
Explanation -
Principle of Indemnity states that In case of loss against which the policy has been insured, the insured shall be paid the cost of actual cost of loss, not exceeding the amount of Insurance policy. Indemnity is considered to be a contractual agreement between two parties whereby one party agrees to pay for potential losses or damages caused by another party.