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IMPORTANT QUESTIONS

IC 34 (General Insurance)

The paid up capital of an Insurance Company should not be less than ?


Rs. 100 CRORES
IRDAI has registered how many insurance companies so far?
29 General Insurance Companies and 24 Life Insurance companies.
Which is the first Document to be filled by the Insured while taking a Policy?
Proposal Form
As per guidelines, an Insurance company has to process an Insurance proposal wit
hin how many days?
15 days.
The maximum liability of an Insurer is?
Sum insured
Cover notes are issued mostly for
Motor & Marine branches
Validity of a Cover note is
60 days
Evidence of a contract is
Policy Document
Any change/alteration made in the policy comes in the form of
Endorsement
Has IRDAI made it compulsory to issue Renewal notice to the insured.
No. Renewal Notices are issued as a matter of courtesy
Intimation of a claim has to be made to the insurer
Immediately
The Principle of under insurance would apply if
One does not insure the property for its full value
Claim Settlement is done through
Cash payment, Repair of a damaged item, Replacement of the lost or damaged item
and Reinstatement
The Policy where the Sum Insured is decided between the Insurer & Insured is kno
wn as
Agreed Valued /Valued Policy
Subrogation means
Transferring of Rights & remedies of the insured to insurer to go against the t
hird Party
Contribution means
If same risk is insured with multiple insurers, all insurers will pay their rat
able proportion at the time of a claim
The Latin terms Uberrima Fides means
Utmost Good Faith

Utmost Good Faith means


The proposer has the legal duty to disclose all material information about subj
ect matter of insurance to insurers who do not have any information
Material information means
That information which enables the insurer to decide whether they will accept t
he risk or no & if so, on what terms & conditions
Duty of disclosure in non-life arises at
All stages
while taking a policy, during the currency of the policy and at the
time of a claim
If material facts are misrepresented the Policy becomes
Void
The interest that the insured has in his house or his money is termed as
Insurable interest
Proximate cause means
The cause having the most significant impact in bringing about the loss.
Risk means
Cause of loss
Pure Risk means
Situation where there is a chance of either loss or no loss
Speculative Risk means
Either there will be a loss or there will be a gain
Insurance is concerned only with
Pure Risks
Peril means
Cause of loss
If the insured has installed Fire extinguishers, he will get a __________ from t
he insurer.
Discount
No Claim made in the previous year is a discount for ?
Safe driving
Deductible is known as
Excess amount applied by the Insurer to be borne by the Insured.
Broad Classification of Non-life insurance is
Fire, Marine & Miscellaneous
Miscellaneous branch consists of
Motor, Health, Personal accident, Liability, Engineering, Rural, Burglary etc.
Obligation laid down by IRDAI for non-life Insurers for Rural Sector is
2% in the first year for new insurers, 3% in the second year and 5% in the comi
ng years
The Prime purpose of Insurance Regulations is
Protect the interest of Policyholders
Subrogation & Contribution do not apply to
Personal Accident policies.

Personal Accident policy covers


Death, Permanent Total Disability (PTD), Permanent Partial Disability (PPD) and
Total Temporary Disability (TTD)
The add-on cover means
Extra benefit provided by the insurer on payment of additional premium
Special features of P.A. are
It is valid worldwide and one can travel in a standard aircraft
Weekly compensation means
Payment of a fixed sum per week to a maximum number of weeks for which the comp
ensation would be payable
P.A. policy attracts a cumulative bonus of
5% of increase in sum insured of every claim-free period
Medical check-ups are not required
For fresh as well as renewable P.A. policies
On Duty Cover under P.A. the premium chargeable is
75% of nominal premium
Off Duty Cover premium chargeable is
50% of nominal premium.
Health policies can be issued from age
3 months to 80 years
Role of a TPA is only to
Process the papers when a claim arises
The TPA s duty does not involve
Collection of Premium
For a claim under a Health Policy
24 hours hospitalization is required.
Are artificial limbs covered under a health policy?
Yes, they are covered automatically.
There is a waiting Period of how many years in a fresh Policy for certain diseas
es (cataract etc.).
2 years
Portability means
The insured can transfer his Policy to a new insurer and the 2 years exemption
with the previous insurer will continue, meaning that his policy will already be
in the third year with the new insurer.
The insured is entitled for a free health check- up
Once in every four claim free years
The grace period for renewal for a health insurance policy is
30 days
Cumulative Bonus means
5% increase on sum insured till he reaches 50% of the original sum insured

The Act for Motor Insurance is


Motor Vehicles Act 1988
MV Act 1988 covers
Third party bodily injury/Death, grievous injury & third party Property damage
As per MV Act, third party property damage is covered upto
Rs. 6000
Third Party Motor claims are settled by
Motor Accident Claims Tribunal (MACT)
Rates for Motor Act premium are fixed by
IRDAI
Package Policy covers
Own Damage and Third Party
The discount for Automobile Association is
2 % or max. Rs. 200, whichever is less.
Charges for CNG & Stereo etc. other than included in invoice is
4%
The insured is required to pay
Rs. 60 in third party insurance for CNG.
Owner-cum- Driver P.A. for Private as well as Commercial vehicles is
Rs. 2 lac for 4 wheelers & Rs. 1 lac for two wheelers
NCB Slab is
20%, 25%, 35%, 45% & 50%
Towing charges are between
Rs.300 to 1500
Depreciation for Rubber, fiber & glass parts is
50%, 30% & nil respectively
Rating factor in Motor depends on
Zone, Age, C.C. , IDV of the Vehicle
Hazard means
A physical or moral feature that increases the risk
The procedures like Dialysis, chemotherapy etc. which require less than 24 hours
hospitalization will come under
Day care treatment
A surveyor is appointed when the claim amount is Rs. _________or more.
Rs, 20,000
Ombudsman powers are restricted to contracts of value not exceeding ?
20 lacs
Ombudsman has to give his award within how many days?
3 months
A customer having complaint can approach IRDAI through
Integrated Grievance Management System (IGMS)

The jurisdiction of the District Forum is to entertain matters upto what amount?
20 lacskgbkarekbhclakuy