Banking Financial Awareness · General Awareness

Insurance Policies and Claims

1,580 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

Multiple choice

Which of the following is included in insured's declared value?

  1. Registration

  2. Manufacturer's selling price

  3. Arbitrary price component

  4. Both (2) and (3)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Insured's declared value in motor insurance includes manufacturer's selling price. IDV is the value of the vehicle, which is found by adjusting the current manufacturer's listed selling price of the vehicle with depreciation percentage, as prescribed in the IRDA regulations. Manufacturer's listed selling price will include local duties / taxes, excluding registration and insurance.

Multiple choice

Which of the following are covered under plate glass insurance policy?

  1. fire

  2. explosion

  3. accident

  4. earthquake
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The policy covers the cost of accidental breakage of insured glass by any reason, except those that are specifically excluded. Some of the exclusions are:- 

Fire or explosion Earthquakes or such other convulsion of nature Damage to frames Cost of removal or replacement of any fittings or fixtures necessitated for replacing the broken glass Cracked or imperfect glass Any superficial damage or scratching 

Multiple choice

Which of the following statements is true.

  1. Code of conduct regulations apply to micro-insurance agents
  2. Advertisement regulations apply to micro-insurance agents

  1. 1 is true

  2. 2 is true

  3. Both are true

  4. Both are false
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Both the statements are true.  Code of conduct regulations apply to micro-insurance agents. Every micro insurance agent and specified person employed by him shall abide by Code of conduct as laid down in Regulation 8 of the Insurance Regulatory and Development Authority.

Advertisement regulations also apply to micro-insurance agents. Any violation by a micro-insurance agent of the code of conduct and/or advertisement or disclosure norms shall lead to termination of his appointment.

Multiple choice

Which of the following can be a physical hazard in fire insurance?

  1. The voyage to be undertaken

  2. Nature of occupation

  3. Health status of the person

  4. Nature of flooring
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In fire insurance, following are the physical hazard:-

i.    Construction ii.   The height iii.  Nature of flooring Wooden floors add fuel to fire. Besides, wooden floors collapse easily in the event of fire, causing damage to property on lower floors through machinery or goods falling from upper floors. iv.  Occupancy v.   Ignition hazard

Multiple choice

In case of a fire claim, a report from the fire brigade:

  1. is not required

  2. is optional for the insured

  3. is necessary

  4. is part of the police report
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Documents required for Fire Claims (additional documents):

  • Report of the Internal Committee constituted for investigating the cause of fire.
  • Fire Brigade Report.
  • First Information Report / Letter of intimation to the Police Station duly endorsed / Police Panchnama.
  • Forensic Laboratory Report on samples collected at affected site.
  • Drug Inspector's Report on destruction of Drugs/ Pharmaceutical items (for claim on pharma products only).
  • Final Investigation Report.
  • Action taken on the suggestion of TAC/ LPA on loss minimisation of prevention.
Multiple choice

The insurance is: (a) A cooperative device to spread the risk; (b) the system to spread the risk over a number of persons who are insured against the risk; (c) the principle to share the loss of the each member of the society on the basis of probability of loss to their risk; (Which statement is true?)

  1. (a) only

  2. (b) only

  3. (a), (b) and (c) all

  4. (a) and (b) only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The insurance is: (a) A cooperative device to spread the risk; (b) the system to spread the risk over a number of persons who are insured against the risk; (c) the principle to share the loss of the each member of the society on the basis of probability of loss to their risk; and (d) the method to provide security against losses to the insured

Multiple choice

Consider the following statements:

  1. Life Insurance Corporation of India is the oldest insurance company of India.
  2. National Insurance Company Limited was nationalized in the year 1972 and made a subsidiary of General Insurance Corporation of India.
  3. Headquarters of United Indian Insurance Company Limited are located at Chennai.

Which of the statements given above are correct?

  1. 1, 2 and 3

  2. 1 and 2

  3. 2 and 3

  4. 1 and 3

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Oriental Life Insurance company (1818) is the oldest.

Multiple choice

In September 2016, the Indian Railways launched an insurance scheme for passengers travelling ________.

  1. in AC first class

  2. in AC 2 Tier

  3. in AC 3 Tier

  4. on e- ticket

  5. in sleeper class
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Indian Railways travel insurance scheme launched in September 2016 was automatically available to passengers booking e-tickets across all classes with very low premiums (up to 92 paise). It wasn't restricted to specific travel classes but to the booking method.

Multiple choice

Match all the correct insurance policies with their respective parent companies.

   
List- I
List - II
(a)
HDFC
(i) Smart
(b)
AVIVA
(ii) Youngstar
(c)
Ing Vysya
(iii) Life bond
(d)
Met life
(iv) Freedom plan

  1. (a) - (ii), (b) - (iii), (c) - (iv), (d) - (i)

  2. (a) - (iii), (b) - (ii), (c) - (iv), (d) - (i)

  3. (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)

  4. (a) - (ii), (d) - (i), (b) - (iv), (c) - (iii)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

HDFC Life offers Youngstar insurance plan, making (a)-(ii) correct. AVIVA provides Life bond plan, so (b)-(iii) is accurate. ING Vysya's Freedom plan makes (c)-(iv) correct. Met Life's Smart plan completes the matching as (d)-(i). Option A correctly matches all four insurance providers with their respective policy names.

Multiple choice

Directions: Choose the correct option for the given question.

Which of the following schedules will be written in revenue account of an insurance company?

  1. Schedule 10-14

  2. Schedule 5-8

  3. Schedule 1-4

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Insurance companies prepare Revenue Accounts with 14 schedules following IRDA regulations. Schedules 1-4 relate to technical revenue items: Schedule 1 (Premium), Schedule 2 (Claims), Schedule 3 (Commission), and Schedule 4 (Operating Expenses). These schedules form the Revenue Account which shows the underwriting result. Schedules 5-8 relate to investment income, non-operating items, and profit/loss. Schedules 10-14 contain additional disclosures and supplementary information. Therefore, Schedules 1-4 are written in the Revenue Account.

Multiple choice

Transfer of actionable claim has exception under Section130 Transfer of Property Act.

  1. It does not apply to transfer of life insurance policy.

  2. It does not apply to the transfer of marine or fire policy.

  3. It does not apply to vehicle insurance policy.

  4. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Exception of Section 130 of Transfer of property Act, 1882, nothing in this section applies to the transfer of a marine or fire policy of insurance or affects the provisions of Section 38 of the Insurance Act, 1938.