Insurance Sector General Knowledge Questions
The headquarters of IRDA is located in –
The headquarters of Insurance Regulatory and Development Authority (IRDA) of India is located in Hyderabad.
In context of heath insurance, under which policy the insurer pays the total or partial amount of the insured person’s hospital bills?
[B]Hospital Daily Cash Benefit policy
[C]Critical Illness benefit policy
[D]All of the above
The Hospitalization policy covers, fully or partly, the actual cost of the treatment for hospital admissions during the policy period. This is a wider form of coverage applicable for various hospitalization expenses, including expenses before and after hospitalization for some specified period. Such policies may be available on individual sum insured basis, or on a family floater basis where the sum insured is shared across the family members.
Under which section of Income Tax Act, the insured person can claim for tax deduction for the amount invested in insurance?
Under section 80D of the income tax act, the insured person who takes out the policy can claim for tax deduction for the amount invested.
On which date, Life Insurance Corporation of India (LIC) was established?
As per the Life Insurance Corporation Act, 1956, Life Insurance Corporation of India (LIC) was founded by Government of India on September 1,1956.
Which term refers to termination of a policy due to failure to pay the required renewal premium.
Policy Lapse refers to termination of a policy due to failure to pay the required renewal premium.
If a general or life insurance policy with a sum assured of Rs. 50000 or less, then it denotes which type of insurance category?
A micro-insurance policy is a general or life insurance policy with a sum assured of Rs. 50000 or less.
If a person experience illness, injury, or other physical or psychological impairment, whether temporary or permanent, then it is which type of risk?
Morbidity Risk is the potential for a person to experience illness, injury, or other physical or psychological impairment, whether temporary or permanent. Morbidity risk excludes the potential for an individual’s death, but includes the potential for an illness or injury that results in death.
Which type of life insurance coverage payable to a third party lender upon the death of the insured for loss of loan payments?
Mortgage Insurance is a form of life insurance coverage payable to a third party lender/mortgagee upon the death of the insured/mortgagor for loss of loan payments.
What do we call the money charged for the insurance coverage?
Premium is the money charged for the insurance coverage reflecting expectation of loss.
Under ESIC, Employer contribution rate and Employee contribution rate respectively is –
[A]4.75% & 1.75%
[B]1.75 % & 4.75%
[C]12% & 12%
4.75% & 1.75%
Under Employee’s State Insurance Corporation (ESIC) , Employer contributes 4.75% and employee contributes 1.75% .