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?
Which among the following scenarios warrants insurance?
Signup and view all the answers
Which of the below insurance schemes is run by an insurer and not sponsored by the Government?
Signup and view all the answers
Risk transfer through risk pooling is called?
Signup and view all the answers
The measures to reduce chances of occurrence of risk are known as?
Signup and view all the answers
By transferring risk to the insurer, it becomes possible __________.
Signup and view all the answers
Origins of modern insurance business can be traced to?
Signup and view all the answers
In insurance context 'risk retention' indicates a situation where?
Signup and view all the answers
Which of the following statements is true?
Signup and view all the answers
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?
Signup and view all the answers
Which of the following statements is true?
Signup and view all the answers
Why do insurers arrange for survey and inspection of the property before acceptance of a risk?
Signup and view all the answers
Which of the below options best describes the process of insurance?
Signup and view all the answers
What is meant by customer lifetime value?
Signup and view all the answers
Identify the scenario where a debate on the need for insurance is not required.
Signup and view all the answers
As per the Consumer Protection Act, 1986, who cannot be classified as a consumer?
Signup and view all the answers
What does not go on to make a healthy relationship?
Signup and view all the answers
Which among the following is not an element of active listening?
Signup and view all the answers
Which among the following is not a characteristic of ethical behavior?
Signup and view all the answers
---------------------- is not a tangible good.
Signup and view all the answers
Study Notes
Insurance Industry in India
- The regulator for the insurance industry is the Insurance Regulatory and Development Authority of India (IRDAI).
- Key organizations include Life Insurance Corporation of India and General Insurance Corporation of India.
Risk Management
- Secondary burden of risk includes business interruption costs, not direct losses such as goods damaged cost.
- Methods of risk transfer: Utilizing insurance is a key method over options like bank FD or equity shares.
- Insurance necessity arises when facing potential significant losses, such as untimely death of a family's breadwinner.
Insurance Schemes
- Non-government insurance schemes include options like Jan Arogya, not limited to government-sponsored schemes.
Risk Pooling and Retention
- Risk transfer through pooling is termed insurance; it allows for spreading risk among many.
- Measures to diminish risk occurrence are termed loss prevention.
- Risk retention implies choosing to bear and manage risk impacts.
Insurance Concept Understanding
- Transferring risk can enhance peace of mind and improve business planning.
- Modern insurance can trace its origins back to Lloyds.
- Retention in insurance means accepting risk rather than transferring it.
True Statements Concerning Insurance
- Insurance protects assets financially by compensating losses rather than preventing loss.
- Average contribution towards losses can be calculated based on combined loss and number of insured properties.
Insurance Process Insights
- Insurance is fundamentally a method of sharing the losses of many by a few.
- Customer lifetime value focuses on the sum of economic benefits from long-term relationships.
Consumer Classification and Relationships
- Under the Consumer Protection Act, 1986, a person purchasing goods for resale doesn't qualify as a consumer.
- Healthy relationships are built on trust, communication, and attraction rather than scepticism.
- Active listening does not include being judgmental; it requires attention, empathy, and appropriate responses.
Ethical Behaviour in Business
- Ethical behavior encompasses disclosure and the confidentiality of client information.
- Prioritizing clients' interests over self-interest is a hallmark of ethical conduct.
Tangibility of Goods
- Insurance is classified as a non-tangible good, contrasting with physical products like houses or mobile phones.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on the regulation of the insurance industry in India with this IC 38 question bank. Explore key concepts and identify the appropriate authorities and the secondary burdens of risk in insurance. Perfect for students preparing for exams in insurance and finance.
