Banking Financial Awareness · General Awareness
Insurance Policies and Claims
1,514 Questions
Insurance policies provide financial protection against specific perils, involving concepts like deductibles, premiums, and claim settlements. Banking and insurance aspirants need a solid grasp of policy types, coverage limits, and claim procedures. Practice these questions to understand how different insurance principles apply in real scenarios.
Deductible clausesInsurance perilsTravel insurance coveragePolicy conversion rightsClaim dispute avoidanceSubrogation principles
Insurance Policies and Claims Questions
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Police
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Supreme Court
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Insurance Ombudsman
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District Court
C
Correct answer
Explanation
The Insurance Ombudsman scheme was created by the Government of India for individual policyholders to have their complaints settled out of courts in a cost-effective, efficient and impartial way.
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the claim will be rejected
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the claim will be paid subject to policy conditions
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the claim is payable after deducting the premium
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None of the above
C
Correct answer
Explanation
If a policyholder dies within the grace period, then the claim is payable after deducting the premium.
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Notice of assignment has to be given to the insurer.
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Notice of nomination has to be given to the insurer.
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Both (1) and (2)
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None of the above
C
Correct answer
Explanation
Notice of assignment and notice of nomination have to be given to the insurer.
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loan
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human life value
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economic value
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claim
D
Correct answer
Explanation
An insurance contract terminates after claim is paid.
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Insurance Ombudsman has national jurisdiction.
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Insurance Ombudsman has state jurisdiction.
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Insurance Ombudsman has direct jurisdiction.
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Insurance Ombudsman operates only within the specified territorial limits.
D
Correct answer
Explanation
The Ombudsman functions within a set geographical jurisdiction and can entertain disputes relating to partial/total repudiation of claims, delay in settlement of claims, any dispute on the legal construction of the policies in so far as such disputes relate to claims, disputes regarding premium paid or payable in terms of the policy and non-issuance of insurance documents.
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The complaint is to be made in writing.
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The complaint is to be made orally over the phone.
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The complaint is to be made orally in case of a face to face manner.
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The complaint is to be made through newspaper advertisement.
A
Correct answer
Explanation
The complaint is to be made in writing.
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Aviva Life
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Birla Sun life
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LIC
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None of these
B
Correct answer
Explanation
'Supreme Life' is a life insurance plan from Birla Sun Life (now Aditya Birla Capital). It's not associated with Aviva, LIC, or any other insurer mentioned in the options.
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Master policy
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Keyman policy
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VIP Protection policy
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Umberrima fides
B
Correct answer
Explanation
Key person insurance, also called keyman insurance and key man insurance, is an important form of business insurance. There is no legal definition for "key person insurance". In general, it can be described as an insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of an important member of the business. To put it simply, keyman insurance is a standard life insurance, TPD insurance or trauma insurance policy, that is used for business succession or business protection purposes.
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Life insurance
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Fire insurance
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Marine insurance
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None of the above
D
Correct answer
Explanation
Correct Answer: None of the above
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master
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keyman
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loss protection
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umberrima fides
A
Correct answer
Explanation
Master policy means an insurance policy that provides coverage to eligible employees or members on a group basis.
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In indemnity, the loss is to be made good as soon as it occurs
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In the case of guarantee, surety’s liability is secondary and principal debtor’s liability is primary
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An indemnity is for the reimbursement of loss
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A guarantee is for bearing the loss that is caused due to the action of principal debtor or any other party
D
Correct answer
Explanation
Guarantee contract is to perform the obligation or to discharge the liability of a third party in case of its default. Thus, option 4 is the correct option.
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Guarantee
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Pledge
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Bailment
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Indemnity
D
Correct answer
Explanation
Security or protection against a loss or other financial burden is known as indemnity. Thus, insurance policies are contracts which are in the nature of indemnity.
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Insurance policies cannot be traded
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Insurance polices can be traded and assigned
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Insurance policies can be discontinued only with the permission of High Court.
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Insurance policy cannot be discontinued once you buy them.
B
Correct answer
Explanation
The Bombay High Court ruled that insurance policies can be traded and assigned, establishing that life insurance policies are transferable assets. This judgment clarified that policyholders have the right to sell, transfer, or assign their insurance policies to other parties, treating them as property.
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Personal accident insurance
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Fidelity guarantee
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Marine cargo insurance
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Burglary insurance
A
Correct answer
Explanation
In personal accident insurance, the principle of indemnity is not strictly applied as human life cannot be measured in terms of money.
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avoid claim payment
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eliminate payment of small claims
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harass the policyholder
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increase the premium
B
Correct answer
Explanation
The purpose of a deductible clause is to:
-eliminate small claims that are expensive to handle and process
-reduce premiums paid by the insured
-reduce moral hazard and attitudinal hazard