Tag: insurance - introduction and importance

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Questions Related to insurance - introduction and importance

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

_______ is paid to the workers who fulfill certain eligibility conditions like a minimum qualifying service period of five years.

  1. Pension

  2. Gratuity

  3. Salary

  4. Interest
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees of any establishment or corporate unit be it is private or public only after completion of a qualifying service of 5 years.

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

The contribution paid by the employer is ___ of basic wages plus dearness allowance plus retaining allowance.

  1. 6%

  2. 7%

  3. 12%(in case of more than 20 employees ) 10%   (in case of less than 20 employees) 

  4. 11%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The contribution paid by the employer is 12%(in case of more than 20 employees) 10% (in case of less than 20 employees) of basic wages plus dearness allowance plus retaining allowance, according to the EPFO rules.  The contribution of both employer and employee is limited to 10% only.

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

As per the EPFO rules, the contribution rate for both employee and the employer is limited to 12 percent.(in the case of more than 20 employees)

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As per the EPFO rules, the contribution rate for both employee and the employer is limited to 12 percent.(in the case of more than 20 employees)- this is a true statement. The contribution of both the employees and employer is limited to 10% only.

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

There are two major social security plans in India, the Employees Provident Fund Organization (EPFO) and the Employees State Insurance Corporation (ESIC).

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

There are two major social security plans in India, the Employees Provident Fund Organization (EPFO) and the Employees State Insurance Corporation (ESIC) Social security refers to protection provided by the society to its members against providential mishaps over which a person has no control. Social security schemes are only available to the the employees of the organized sector of India.

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

India's social security schemes cover the following types of social insurances as ______.

  1. Pension

  2. Health Insurance and Medical Benefit

  3. Gratuity

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
India's social security schemes cover the following types of social insurances as:
a) Pension
b) Health Insurance and Medical Benefit
c) Gratuity
Social security refers to protection provided by the society to its members against providential mishaps over which a person has no control. Social security schemes are only available to the the employees of the organized sector of India.
Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

_______ allows for payment of gratuity to employees in any establishment, factory, mine, oilfield, plantation, port, railways, company, or shop employing 10 or more workers.

  1. Payment of Gratuity Act, 1972

  2. EPF Act 1969

  3. Employee Provident Fund and Miscellaneous Provisions Act 1953

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees of any establishment or corporate unit be it is private or public only after completion of a qualifying service of 5 years.
Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

Under the Payment of Gratuity Act, 1972 the maximum gratuity payable is _____.

  1. Rs. 10 lakhs

  2. Rs. 8 lakhs

  3. Rs. 5 lakhs

  4. Rs. 3.5 lakhs
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees. 

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

A _______ is a tax-efficient way to save for your retirement.

  1. pension

  2. income

  3. fund

  4. NPS
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Pension is a type of after retirement payment to the retired employees of the business which is cut from the salary every year and is not taxable under the income tax act, 1961. 

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

The eligibility condition for obtaining gratuity under the Payment of Gratuity Act, 1972 is ___________________.

  1. Completion of 2 years of Service

  2. Completion of 3 years of Service

  3. Completion of 4 years of Service

  4. Completion of 5 years of Service
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees only after completion of a qualifying service of 5 years.
Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

What is the qualifying service to claim gratuity?

  1. 15 years

  2. 10 years

  3. 5 years

  4. No such prescription
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees only after completion of a qualifying service of 5 years.