Questions and Answers
Which among the following is the regulator for the insurance industry in India? (Select all that apply)
Which among the following is a secondary burden of risk? (Select all that apply)
Which among the following is a method of risk transfer? (Select all that apply)
Which among the following scenarios warrants insurance? (Select all that apply)
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Risk transfer through risk pooling is called?
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The measures to reduce chances of occurrence of risk are known as?
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By transferring risk to the insurer, it becomes possible ___________?
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Origins of modern insurance business can be traced to?
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In insurance context 'risk retention' indicates a situation where?
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Which of the following statement is true? (Select all that apply)
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Out of 400 houses, each valued at Rs. 20,000, on an average 4 houses get burnt every year resulting in a combined loss of Rs. 80,000. What should be the annual contribution of each house owner to make good this loss?
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Which of the following statements is true? (Select all that apply)
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Why do insurers arrange for survey and inspection of the property before acceptance of a risk? (Select all that apply)
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Which of the below options best describes the process of insurance?
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What is meant by customer lifetime value?
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Identify the scenario where a debate on the need for insurance is not required.
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As per the Consumer Protection Act, 1986, who cannot be classified as a consumer?
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What does not go on to make a healthy relationship?
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Which among the following is not an element of active listening?
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Which among the following is not a characteristic of ethical behaviour?
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---------------------- is not a tangible good.
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Study Notes
Insurance Regulation in India
- Insurance Regulatory and Development Authority of India (IRDAI) is the primary regulator for the insurance industry in India.
- Life Insurance Corporation of India and General Insurance Corporation of India are major entities but not regulators.
Risk Management
- Secondary burden of risk includes costs such as business interruption and hospitalization fees.
- Risk transfer methods include insurance, which mitigates overall risk exposure.
Insurance Scenarios
- Insurance is warranted in situations like the untimely death of a breadwinner, not in losing a wallet or the depreciation of assets.
- Non-government insurance schemes include those operated by private insurers.
Risk Principles
- Risk pooling is identified with insurance as it allows shared risk among many individuals.
- Measures to minimize the likelihood of risks are referred to as loss prevention.
Insurer Responsibilities
- Transferring risk to an insurer allows for better business planning and peace of mind, but it doesn't promote carelessness.
- Modern insurance traces roots back to Lloyd's and concepts such as bottomry.
Risk Retention
- Risk retention denotes a willingness to absorb risk consequences rather than transferring it to an insurer.
Insurance Insights
- Insurance is about sharing losses among many to protect against individual loss.
- Insurers conduct property surveys to accurately assess and rate risks before acceptance.
Customer Relations and Value
- Customer lifetime value focuses on the economic benefits of fostering long-term customer relationships.
- Healthy interpersonal relationships in business rely on trust, communication, and attraction, not skepticism.
Consumer Protection
- Under the Consumer Protection Act, a person buying goods for resale is not categorized as a consumer.
- Ethical behaviors in business prioritize client interests over self-interest, ensuring transparency and confidentiality.
Active Listening Skills
- Active listening entails paying attention, using empathetic listening, and responding properly, while being judgmental is not part of this skill set.
Intangible Goods
- Insurance is classified as an intangible good, unlike physical items such as mobile phones, houses, or jeans.
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Description
Explore the principles of insurance regulation in India, focusing on the role of the Insurance Regulatory and Development Authority of India (IRDAI). This quiz covers risk management strategies, insurance scenarios, and the responsibilities of insurers, offering insights into how these elements interact in the insurance industry.
