Social Insurance and Employee Benefits Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does unemployment insurance provide?

Long-term financial stability

Temporary income for those who lose their jobs (correct)

Health coverage for workplace injuries

Benefits for caring for dependents

Which of the following is a function of accident insurance?

Administers disability benefits

Provides funds for unemployment

Covers medical expenses for health damage at work (correct)

Offers pensions post-retirement

What is the primary purpose of the National Survivor Benefits Act?

To protect survivors from financial difficulties after the death of a parent or partner (correct)

To ensure savings for retirement

To provide health insurance for the elderly

To provide temporary unemployment benefits

Social insurance differs from other forms of social assistance in that:

Individual claims depend partly on contributions made Signup and view all the answers

How much do employees contribute to the Provident Fund in India?

12% of their monthly salary Signup and view all the answers

Which of the following risks does social insurance not typically cover?

Death due to natural causes Signup and view all the answers

What role does the Employees' Provident Fund Organization (EPFO) serve in India?

Administers social security regulations Signup and view all the answers

Which of the following is NOT a type of social insurance mentioned?

Accident insurance for non-workers Signup and view all the answers

What is the primary function of the EPFO?

To administer social security schemes for employees Signup and view all the answers

Which act was enacted in 1948 to provide employee insurance?

Employees' State Insurance Act Signup and view all the answers

What is the minimum monthly contribution for the Pradhan Mantri Shram Yogi Maan-Dhan Yojana if the beneficiary’s entry age is low?

Rs.55 Signup and view all the answers

What contributes to the total monthly payment in the Pradhan Mantri Shram Yogi Maan-Dhan Yojana?

Beneficiary pays 50% and Government matches it Signup and view all the answers

Which of the following is a characteristic of social insurance programs?

They typically ensure social adequacy of benefits Signup and view all the answers

How do private insurance programs generally differ from social insurance programs?

Social insurance focuses more on individual purchasers' equity Signup and view all the answers

What is a key feature of social security schemes administered by the EPFO?

They involve wide pooling of risks Signup and view all the answers

What determines the expected costs of social insurance systems?

Risks pooled among participants Signup and view all the answers

What does burglary insurance specifically cover?

Damage caused to the premises from burglary Signup and view all the answers

Which of the following losses is NOT covered by burglary insurance?

All types of theft Signup and view all the answers

Who should consider purchasing burglary insurance?

Homeowners and business owners Signup and view all the answers

What is an example of a specific event that is excluded from burglary insurance coverage?

Theft resulting from a natural disaster Signup and view all the answers

What should retailers and merchants specifically be concerned about regarding burglary?

Burglary of stock, cash, and equipment Signup and view all the answers

Which of the following is a reason financial institutions need burglary insurance?

To mitigate potential losses from cash handling Signup and view all the answers

Which of these statements about burglary is true?

Burglary can include damage to property without theft Signup and view all the answers

What type of loss does burglary insurance NOT cover?

Loss caused by ionizing radiation Signup and view all the answers

Which document is NOT required for submitting a health insurance claim?

Latest utility bill Signup and view all the answers

What is the primary purpose of third-party car insurance?

To compensate victims of accidents caused by insured drivers Signup and view all the answers

Which of the following is a key reason for making third-party car insurance mandatory?

It ensures victims are compensated promptly Signup and view all the answers

What should be included when providing proof of hospitalization for a health insurance claim?

Doctor’s consultation slips and prescriptions Signup and view all the answers

Which of the following is not explicitly covered by a third-party car insurance policy?

Loss due to personal injuries for the insured Signup and view all the answers

What document serves as proof of identity for health insurance claims?

Aadhaar Card, passport, or voter ID Signup and view all the answers

Which aspect of motor vehicle insurance addresses the needs of third-party victims?

It defines liability and facilitates compensation for damages. Signup and view all the answers

Which of the following documents is required to support a health insurance claim involving medicines?

Original pharmacy bills Signup and view all the answers

What is the primary role of third-party liability insurance in motor vehicle insurance?

It ensures victims of accidents are compensated. Signup and view all the answers

Which document is NOT required for obtaining car insurance?

Monthly Salary Slip Signup and view all the answers

What measure serves as a deterrent against reckless driving according to the insurance system?

High premium rates for high-risk drivers Signup and view all the answers

What is the outcome of the Motor Vehicles Act's requirement for third-party insurance?

It prevents financial ruin for vehicle owners. Signup and view all the answers

What types of losses does war risk insurance provide protection against?

Losses from invasions and terrorism Signup and view all the answers

Why is war risk insurance offered as a separate policy?

It is excluded from standard policies due to high risks Signup and view all the answers

What is the fixed compensation amount for 'hit and run' cases as per the Motor Vehicles Act, 2019 in India intended to provide?

Predictability in claim resolution Signup and view all the answers

Which of the following statements about motor vehicle insurance is false?

It is unnecessary if drivers believe they are safe. Signup and view all the answers

Who are the ideal candidates for war risk insurance?

Businesses operating in high-risk countries Signup and view all the answers

What might standard insurance policies exclude that leads to the need for a war risk insurance rider?

Losses from war-related events Signup and view all the answers

Which aspect does not directly relate to the importance of motor vehicle insurance?

Increased vehicle registration fees Signup and view all the answers

What effect does motor vehicle insurance have on road safety awareness?

It creates a financial consequence associated with negligent behavior. Signup and view all the answers

What kinds of events are generally covered by a war risk insurance policy?

Loss or damage from war-related events including sabotage Signup and view all the answers

Which of the following is a reason for the exclusion of war risk from standard insurance policies?

Inability to accurately predict damages and set premiums Signup and view all the answers

What is one of the coverage options that may be included in a war risk insurance policy?

Kidnappings and ransom costs Signup and view all the answers

Which of the following perils might not be covered by a standard insurance policy due to war exclusions?

Loss of cargo due to military action Signup and view all the answers

Study Notes

Introduction

Law of Insurance is a broad topic, comprising various specific insurance types.
The document outlines different forms of insurance, their features and importance.

Miscellaneous Insurance

This section provides a general overview of the topic.

Social security aims to guarantee a minimum income for those in difficult circumstances.
Social insurance, a key pillar of social security systems, minimizes risks and supports income when individuals face circumstances like illness or job loss.
This measure bolsters a country's competitiveness in the global market.

Social insurance effectiveness relies on policy implementation and public participation, strengthening social security protection.
Individuals' contributions are nominal, not exceeding their affordability.
The benefits and eligibility requirements are defined by statute.
Social insurance funding often includes taxes or premiums from participants.
Universal coverage is envisioned for the entire working age population, ensuring welfare rights for everyone.
Policies strive for fairness and equal participation and benefit opportunities for all groups.
Transparency in policies, regulations, rights, and responsibilities is also a focus.

Financial Sustainability and Role of Government

Social insurance fund sustainability is crucial for consistent operations.
The government's role entails ensuring citizen participation in the system and providing appropriate solutions for specific target groups.
Participation in social insurance is typically compulsory.
People often desire help for risks beyond their control, making social insurance a socially responsible program.
Premiums paid by contributors are vital for financing the benefits provided. This perceived fairness strengthens the program's legitimacy.

Unemployment insurance offers temporary income for the jobless.
Accident insurance compensates for health damage during work.
Survivor benefits protect families during difficult times after a parent's death.
Employee's compensation insurance protects workers from workplace injuries.
Medicare provides health insurance for senior citizens and disabled people.
Provident Fund encourages saving, providing a pension after retirement.
Social Security Disability Insurance assists disabled individuals.

Social insurance is a social welfare framework protecting against economic risks, which may be publicly or privately administered.
Unlike other forms of social assistance, claims in social insurance are often tied to contributions.
Common insurance risks covered include old age, unemployment, disability, disease, and, sometimes, maternity.
The coverage is designed to build a common fund for future payouts to individuals based on their contributions.

Social security funding in India stems from employee, employer, and government contributions.
Employees contribute 12% of their monthly salary, employers match this amount, and the government adds 1%.
The Employees' Provident Fund Organisation (EPFO) administers and manages social security programs in India.
Coverage is available for various sectors if employee numbers meet certain requirements or if voluntary enrollment is undertaken.

The Employees' State Insurance Act of 1948 (ESI Act).
The Employees' Provident Fund & Miscellaneous Provisions Act of 1952 (EPF Act).
The Maternity Benefit Act of 1961.
The Payment of Gratuity Act of 1972.
The Employees' Compensation Act of 1923.
Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-SYM) defines eligibility criteria, contribution ranges for the old-age protection scheme.

This section addresses queries like the age for full social security benefit eligibility and eligibility for social security pensions.
It also looks at similarities and differences between private and social insurance.

War Risk Insurance

War risk insurance safeguards policyholders from losses due to events like invasions, riots, and terrorist attacks.
Standard insurance policies typically exclude war risk, requiring separate riders for coverage.
This type of insurance is typically marketed to entities operating in high-risk regions or facing potential political uncertainty.
Some insurance covers cancellation of events due to war or terrorist threats, or for damage to property or cargo due to sabotage, emergency evacuation or long-term disability.
Premiums are often substantial because of the difficulty in anticipating the extent of insured damages.

Liability Insurance

Liability insurance protects individuals and businesses against claims arising from injuries or property damage to others.
It covers legal fees and payouts if an insured party is found legally responsible.
Common types include automotive, personal injury, workers' compensation, and commercial insurance.
Personal liability insurance protects property and other assets if incidents arise from actions on the insured's property.
This insurance helps mitigate large financial burdens that could result from lawsuits and judgments.

Business Liability Insurance

General liability insurance covers injury or property damage claims; errors and omissions cover mistakes.
Data breach insurance addresses risks of cyberattacks.
Commercial auto insurance covers accidents related to company use vehicles.

Personal Liability Insurance

Personal liability coverage protects property and other assets in incidents on the insured's property.
This insurance helps avoid personal liability in an accident that the insured was responsible for.
This protection is part of broader homeowner's or renters' insurance programs.

Liability Insurance Exceptions

Medical expenses resulting from an accident caused by the insured are not covered by bodily injury liability insurance. - Property damage liability does not cover a damaged vehicle in an at-fault accident.
Intentional acts and criminal activities are usually excluded from liability coverage.

Role of Liability Insurance in Mitigating Financial Risks

Liability insurance manages substantial defense costs, settlements, and judgments.
It shifts financial risk away from businesses, allowing them to focus on their core operations.
Many policies also include risk management tools, such as training and loss prevention strategies.

Influence on Corporate Behavior

Insurance drives businesses to maintain high safety and ethical standards.
Potential for complacency or moral hazards related to coverage exist, however, impacting risk assessment and mitigation.
Insurance can encourage transparency, risk management, and corporate accountability in business actions.

Burglary Insurance

Burglary insurance covers property losses from forced entry.
It covers all damage, up to a given amount, from the burglary event.
It guarantees restitution for all losses.

Theft, Robbery, and Dacoity

Theft involves taking items without consent; Robbery includes forceful taking; Dacoity is an aggravated form of robbery by multiple people with substantial use of force or weapons.

Health Insurance

Health insurance covers medical expenses for illness or injury.
It tackles rising medical costs and ensures coverage for various medical activities.
Covers pre- and post-hospitalization expenses, ambulance transport, surgeries, and other medically required procedures.
Reduces the financial burden of critical illnesses and includes various insurance types.

Claim Procedure and Required Documents

Two claim procedures, cashless and reimbursement, are described.
Documentation details are outlined for submitting health-related claims, including claim forms, ID proof, discharge summaries, diagnostic tests, and other receipts.

Motor Vehicle Insurance

Compulsory third-party insurance covers damages to other people affected during an accident.
This insurance covers the compensation of others involved in an accident, alleviating the financial impact.
This mandatory policy protects accident victims by compensating them for their injuries and property damage.

Important Features of Motor Vehicle Laws & Regulations

Legal regulations govern minimum coverage, claim procedures, and compensation for accidents.
Tribunals, like motor accident claim tribunals, expedite claim resolution.
Insurance policies and regulations for motor vehicles vary with vehicle classes.
The law requires insurance and penalizes those without insurance.

Types of Vehicles and Insurance Premiums

Different types of vehicles, like cars, and two-wheelers, have varying annual insurance premiums based on factors like engine capacity.

Exclusions

This section outlines the exclusions for various policies, often omitting expenses caused directly by the insured's negligence or intentional actions, fraud, or smuggling.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge about social insurance, employee benefits, and related regulations in this quiz. Questions cover topics like unemployment insurance, the Provident Fund in India, and the role of various acts and organizations in social security. Perfect for students studying social policy or human resources.