Insurance Questions for OICL AO Mains and AIC AO 2017

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Insurance Awareness for OICL AO Exam 2017

Just a few days are left for OICL AO Mains It is time to pace up your preparation of Insurance Awareness for OICL AO Mains and AIC AO. These questions related to Insurance Awareness will also help you in preparing for other upcoming banking and Insurance recruitment examination.

Q1. IRDA stands for-
(a) Insurance Regulatory and Department Authority 
(b) Insurance Regulatory and Development Assembly 
(c) Insurance Regulatory and Development Association
(d) Insurance Regulatory and Development Authority
(e) Insurance Regulatory and Development Agency

S1. Ans.(d)
Sol. IRDA stands Insurance Regulatory and Development Authority.

Q2. In which year, the IRDA was incorporated as a statutory body? 
(a) April 2000
(b) April 2001
(c) April 2002
(d) April 2003
(e) April 2004

S2. Ans.(a)
Sol. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April 2000.

Q3. Name the organisation, which regulates the Indian insurance industry to protect the interests of the policyholders and work for the orderly growth of the industry.
(a) IRDAI
(b) RBI
(c) SEBI
(d) NABARD
(e) LIC

S3. Ans.(a)
Sol. IRDAI is regulated the Indian insurance industry to protect the interests of the policyholders and work for the orderly growth of the industry.

Q4. Frames regulations for the insurance industry in terms of Section ________ of the Insurance Act 1938 From the year 2000 has registered new insurance companies in accordance with regulations.
(a) section 124C
(b) section 194B
(c) section 114A
(d) section 127E
(e) section 118A

S4. Ans.(c)
Sol. Frames regulations for the insurance industry in terms of Section 114A of the Insurance Act 1938 From the year 2000 has registered new insurance companies in accordance with regulations. Monitors insurance sector activities for healthy development of the industry and protection of policyholders’ interests.

Q5. What is the functions and duties of IRDAI?
(a) Registering and regulating insurance companies
(b) Promoting professional organisations in insurance.
(c) Regulating investment of policyholders’ funds by insurance companies.
(d) All of the above
(e) None of the given options is true

S5. Ans.(d)
Sol. Functions and Duties of IRDAI
Section 14 of the IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
1. Registering and regulating insurance companies.
2. Protecting policyholders’ interests.
3. Licensing and establishing norms for insurance intermediaries.
4. Promoting professional organisations in insurance.
5. Regulating and overseeing premium rates and terms of non-life insurance covers.
6. Specifying financial reporting norms of insurance companies.
7. Regulating investment of policyholders’ funds by insurance companies.
8. Ensuring the maintenance of solvency margin by insurance companies.
9. Ensuring insurance coverage in rural areas and of vulnerable sections of society.

Q6. In which among the following year United India Insurance Company Limited was incorporated? 
(a) 1919
(b) 1972
(c) 1956
(d) 1949
(e) 1938

S6. Ans.(e)
Sol. United India Insurance Company Limited was incorporated in 1938.

Q7. Insurance firm AIA Group Ltd has decided to increase its stake in Tata AIA Life Insurance Co Ltd, a joint venture owned by Tata Sons Ltd and AIA Group from 26 percent to _________ per cent.
(a) 51 percent 
(b) 100 percent 
(c) 74 percent 
(d) 49 percent
(e) None of the given options is true

S7. Ans.(d)
Sol. Insurance firm AIA Group Ltd has decided to increase its stake in Tata AIA Life Insurance Co Ltd, a joint venture owned by Tata Sons Ltd and AIA Group from 26 percent to 49 percent.

Q8. Insurance of ___________ means insurance of buildings, machinery, stocks etc against Fire and Allied Perils, Burglary Risks and so on. 
(a) wealth
(b) demand
(c) property
(d) capital
(e) general

S8. Ans.(c)
Sol. Insurance of property means insurance of buildings, machinery, stocks etc against Fire and Allied Perils, Burglary Risks and so on. Goods in transit via Sea, Air, Railways, Roads and Courier can be insured under Marine Cargo Insurance. Hulls of ship and boats can be insured under Marine Hull Insurance. Further, there are specialized policies available such as Aviation Insurance Policy for insurance of planes and helicopters. Thus Property Insurance is a very vast category of General Insurance and the type of cover that you need depends upon the type of property you are seeking to cover.

Q9. General Insurance Corporation of India (GIC Re) is a wholly owned company of-
(a) Finance Ministry
(b) Government of India
(c) IRDAI
(d) LIC
(e) RBI

S9. Ans.(b)
Sol. General insurance corporation of India (GIC Re) is a wholly owned company of Government of India.

Q10. What is the authorized capital of General Insurance Corporation of India (GIC)?
(a) Rs.1000 crore
(b) Rs.500 crore 
(c) Rs.2000 crore 
(d) Rs.100 crore 
(e) Rs.5000 crore

S10. Ans.(a)
Sol. The authorized capital of General insurance corporation of India (GIC) is Rs.1000 crore while the paid-up equity capital of the company is Rs.430 crore.

Q11. Agriculture Insurance Company of India Limited (AIC) was incorporated in which year?
(a) 20th December 1999
(b) 20th December 2007
(c) 20th December 1992
(d) 20th December 2004
(e) 20th December 2002

S11. Ans.(e)
Sol. Agriculture Insurance Company Of India Limited (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002.

Q12. IBAI was incorporated as a Company under Section 25 of the Companies Act, 1956. What is the meaning of "B" in IBAI?
(a) Basel
(b) Broadcasting
(c) Board
(d) Brokers
(e) Banking

S12. Ans.(d)
Sol. Insurance Brokers Association of India (IBAI) was incorporated as a Company under Section 25 of the Companies Act, 1956.

Q13. Where is the head office of Agriculture Insurance Company of India Limited (AIC)?
(a) Hyderabad
(b) Mumbai
(c) New Delhi
(d) Kolkata
(e) Chennai

S13. Ans.(c)
Sol. The head office of Agriculture Insurance Company of India Limited (AIC) is in New Delhi.

Q14. Nippon Life Insurance has signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in order to increase its stake in Reliance Life Insurance from 26 percent to 49 percent. Nippon Life Insurance based in-
(a) Germany
(b) Japan
(c) Canada
(d) USA
(e) France

S14. Ans.(b)
Sol. Nippon Life Insurance, Japan’s second-largest life insurance company, has signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in order to increase its stake in Reliance Life Insurance from 26 percent to 49 percent.

Q15. ___________ insurance gives protection to the vehicle owner against damages to his/her vehicle and pays for any Third Party Liability determined as per law against the owner of the vehicle. 
(a) Motor Insurance
(b) Travel Insurance
(c) Group Insurance
(d) Life Insurance
(e) Health Insurance

S15. Ans.(a)
Sol. Motor insurance gives protection to the vehicle owner against (i) damages to his/her vehicle and (ii) pays for any Third Party Liability determined as per law against the owner of the vehicle.  Third Party Insurance is a statutory requirement. The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act, 1988.


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