Taglines of Insurance Companies

  1.  Life Insurance Corporation of India (LIC) – Yogakshemam Vahamyaham – Your welfare is our responsibility
  2.  Tata AIA Life Insurance Company Limited – You click, we cover
  3.  ICICI Prudential Life Insurance Company Limited – Zimmedari ka humsafar
  4.  HDFC Standard life Insurance Company Limited – Sar utha Ke Jiyo
  5.  Oriental Insurance Company Limited – Prithvi, Agni, Jal, Akash, Sabki Suraksha Hamare Paas
  6.  United India Insurance Company Limited – Rest Assured with Us
  7.  Max Bupa Health Insurance – Your Health First
  8.  SBI Life Insurance Company Limited – With Us, You’re Sure
  9.  Birla Sun Life Insurance Company Limited – Muskurate Raho
  10.  Bajaj Allianz Life Insurance Company Limited – Jiyo Befiqar
  11.  Kotak Mahindra Old Mutual Life Insurance Limited – Faidey ka Insurance
  12.  Max New York Life Insurance Company Limited – Karo Zyada ka Iraada
  13.  Apollo Munich Health Insurance – We know Healthcare. We know Insurance
  14.  Future Generali Life Insurance – Ek Shagun Zindagi Ke Naam
  15.  Aviva India Life Insurance – Kal par Control
  16.  ING Vysya Life Insurance India Company – Adding Life to Insurance
  17.  MetLife India Insurance Company Limited – Have you met life today?

Advantages of Increase in FDI in Insurance :

From 26 to 49% Advantages :

  • Capital Inflow
  • Better Technology
  • Increase in Competitiveness
  • Innovative Insurance Products and Policies for Public
  • Increase Penetration
  • Employment Generation
  • stringent competition leading to competitive quotes,
  • improved services and better claim settlement ratio.

Types of Frauds in Insurance Sector

There are many but following are Main.
Premium Diversion
• Premium diversion is the embezzlement of insurance premiums.
• It is the most common type of insurance fraud.
• Generally, an insurance agent fails to send premiums to the underwriter and instead keeps the money for personal use.
• Another common premium diversion scheme involves selling insurance without a license, collecting premiums and then not paying claims.

Fee Churning
• In fee churning, a series of intermediaries take commissions through reinsurance agreements.
• The initial premium is reduced by repeated commissions until there is no longer money to pay claims.
• The company left to pay the claims is often a business the conspirators have set up to fail.
• When viewed alone, each transaction appears to be legitimate—only after the cumulative effect is considered does fraud emerge.

Asset Diversion
• Asset diversion is the theft of insurance company assets.
• It occurs almost exclusively in the context of an acquisition or merger of an existing insurance company.
• Asset diversion often involves acquiring control of an insurance company with borrowed funds. After making the purchase, the subject uses the assets of the acquired company to pay off the debt. The remaining assets can then be diverted to the subject.

Abbreviations:

  1. IRDAI – Insurance Regulatory and Development Authority of India
  2. GIC – General Insurance Corporation of India
  3. NIACL – New India Assurance Company Limited
  4. NICL – National Insurance Company Limited
  5. LIC – Life Insurance Corporation of India
  6. UIICL – United India Insurance Company Limited
  7. OICL – Oriental Insurance Company Limited
  8. AICL – Agriculture Insurance Company Limited

Indian Insurance Facts :

  • TAC (Tariff Advisory Committee) is the sole data repository for the non-life industry.
  • GIC is the ONLY Reinsurer in India.
  • LIC is the only Public sector company in the field of life Insurance.
  • IRDAI is the regulator of Insurance Sector in India.
  • Malhotra Committee was appointed by the Government of India for conducting a study on insurance.
  • National Insurance Academy is situated at Pune.

What is the Importance of Insurance Sector ?

  • Encourages saving habit
  • Provides safety net to Rural & Urban Enterprises and Productive Individuals
  • Generates Long term Investment Funds for Infrastructural Development for a Country.
  • Promotes economic growth:

Problems faced by Indian Insurance Sector Today

  • Lack of awareness for insurance needs
  • Lack of penetration due to inadequate marketing/delivery system
  • Total computerization still in the process of implementation

What is Life Insurance ?

Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to reimburse the occurrence of the insured individual’s death or other event such as terminal illness or critical illness. The insured agrees to pay the cost in terms of insurance premium for the service.

What is IRDAI ?

IRDAI Is an autonomous apex body  which regulates and develops the insurance industry in India. It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999 and duly passed by the Government of India. All Members are appointed by the Government of India.

The agency operates from its headquarters at Hyderabad, Telangana where it shifted from Delhi in 2001. Chairman: T. S Vijayan

What is DICGC ?

Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of Reserve Bank of India. It was established on July 15, 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities. DICGC insures all bank deposits, such as saving, fixed, current, recurring deposits for up to the limit of Rs. 100,000 of each deposits in a bank.

Insurance GK Questions : SET 1

1. The punch line of the advertisement of which of the following organization is “Jindagi ke sath bhi Jindagi ke bad bhi” ?
(A) New India Assurance
(B) General Insurance Corporation
(C) ICICI Prudential
(D) Life Insurance Corporation Of India
(E) None of these

ANS- D

2. The central office of the Life Insurance Corporation of India (LIC) is located at

(A) Kolkata
(B) New Delhi
(C) Chennai
(D) Pune
(E) Mumbai

ANS- E

3. The Life Insurance Corporation Of India has how many Zonal offices in India ?

(A) Five (B) Eight (C) Ten (D) Fifteen (E) None of these

ANS- B

4. If an organization wishes to venture into Insurance Business it has to obtain a licence first from which of the following ?

(A) Indian Banks Association (IBA)
(B) Security and Exchange Board of India (SEBI)
(C) Tariff Advisory Committee (TAC)
(D) Insurance Regulatory and Development Authority of India (IRDAI)
(E) None of these

ANS- D

5. Which of the following is not the name of an Insurance Scheme launched by the Government of India

(A) Janashree Bima Yojana
(B) Krishi Shramik Sarnajik Suraksha Yojana
(C) Shiksha Sahyog Yojana
(D) Varsha Bima Yojana
(E) National Saving Scheme Programme

Answer.- D

6. Which of the following insurance companies writes its punch line in the advertisements “Insurance is the subject matter of solicitation” ?

(A) CIC
(B) LIC
(C) ING Vysya Life InsuranceCo.
(D) Tata AIG Life Insurance Co
(E) None of these

Answer – B

7. Which of the following was the parent company of New India Assurance ?

(A) LIC
(B) GIC
(C) Oriental Insurance Co. Ltd.
(D) United India Insurance
(E) None of these

Answer – B

8. Which of the following words/ terms is closely associated with the insurance business

(A) Archives
(B) Donation
(C) Actuary
(D) Quest
(E) All are associated with insurance

Answer – C

9. The New India Assurance Company was established in 1919 by

(A) Dorab Tata
(B) G. D. Birla
(C) Jamunalal BajaJ
(D) Kamlapat Singhania
(E) None of these

Answer – A

10. Which of the following is largest Non Life Insurance Company in India ?

(A) ICICI Lombard General Insurance Company Ltd.
(B) United India Insurance Company Ltd.
(C) General Insurance Company Ltd.
(D). New India Assurance Company Ltd.
(E) None of these

Answer – D

11. Which of the following Insurance Companies was launched with NABARD as one of its promoter’s with 30% stake in it ?

(A) General Insurance Corporation Ltd.
(B) National Insurance Cornpany Ltd.
(C) Agriculture Insurance Company Ltd,
(D) SBI Life Insurance Company Ltd.
(E) None of these

Answer – A

12. Which of the following correctly describes what the ‘Bancassurance’ is

1. It is an arrangement whereby the branches of a bank sell / distribute insurance products of an insurance company.
2. It is a new product developed/ launched by the banks in which the risks of the high value customers are covered for any losses to their property and/or lives through an insurance cover.
3. It is a new product launched by some banks by which they are providing insurance cover to exporters/ importers for the losses, if any due to high fluctuations in the exchange rates of dollars and other major currencies.

(A) Only 1
(B) Only2
(C) Only 3
(D) All 1, 2 and 3
(E) None of these

Answer – A

13. As per the news published in various newspapers, Life Insurance policies may become paperless in the near future. This means

1) LIC will not insure any person here after as it has already reached its peak
2) LIC will not ask for any documents from a person who wishes to purchase an Insurance policy
3) All policy related documents and policy certificates will henceforth be available in electronic form and not in their present physical
4) LIC henceforth will not entertain any claim or complaint in written form or on paper. Things should be in electronic condition.
5) None of these

Answer – 3

14. In Insurance policies we always find a date which is “Date of Maturity”. What does it mean?

1) This is the date on which the policy was sold to the customer/person insured.
2) This is the date on which the policy holder will have to submit his/her claim
seeking the amount of the policy. Otherwise the company will not make any
payment to him/her.
3) This is the date on which the contract between the person and insurance company will come to an end.
4) The date on which the insurance company makes the final payment to the
insured person which is normally fifteen days after the “payment due date”.
5) None of these

Answer – 3

15. Which of the following insurance plan is not launched by LIC?

1) Jeevan Abhaya 2) Life Mahalife Gold Plan
3) Child Career Plan 4) Child Future Plan 5) Jeevan Saral

Answer – 2

16. Which of the following is the best description of what insurance is?

1) Insurance = Collective bearing of risk
2) Insurance = Paying for other’s mistake
3) Insurance = Taking from ‘A’ to pay ‘B’
4) Insurance = Paying for something which will never happen
5) All of these

Answer – 1

Insurance GK Questions : SET 2

1. Insurance works on the principle of:

a. Sharing of losses

b. Probabilities

c. Large numbers

d. Randomness

e. All of the above

Ans: e. All of the above

2.  Insurance helps to:

a. Prevent adverse situations from occurring

b. Reduce the financial consequences of adverse situations

c. Negate all consequences of adverse situations

d. Make assets continuously productive

e. All of the above

Ans: b. Reduce the financial consequences of adverse situations.

3.  The main purpose of having Life insurance is:

a. As an avenue for long-term investment

b. As a medium for getting income tax benefits from savings

c. As a governmental programme for reducing poverty

d. As an avenue for short-term investment

e. None of the above

Ans: e. None of the above

4. Which of the following intermediaries do not require IRDA’s licence/ approval to operate in India?

a. Insurance Brokers

b. Insurance Agents

c. Third Party Administrators

d. Surveyors

e. All the above intermediaries require IRDA’s licence/ approval

Ans: e. All the above intermediaries require IRDA’s licence/ approval

5. An actuary is expected to:

a. Make an exact forecast of the future liabilities of policies

b. Make a reasonable forecast of the future liabilities of policies

c. Calculate the premium required to cover a risk on a long-term basis

d. Find the probability of an insured event to happen in non-life policies

e. All the above statements are incorrect

Ans: b. Make a reasonable forecast of the future liabilities of policies

6.  As per structured formula under the Motor Vehicle Act, victims of fatal injuries are paid compensation on the basis of:

a. Age and sex

b. Age and number of dependents

c. Income and size of family

d. Age and income

e. Income and number of dependents

Ans: d. Age and income. 

7. As per the Insurance Act, every insurer has to prepare at the end of financial year

a. Balance Sheet

b. Profit and Loss Account

c. Revenue Account for each class of Insurance business

d. Accounts of receipts and payments in respect of share-holders’ funds

e. All of the above

Ans: e. All of the above

8. According to the recently passed Insurance Laws (Amendment) Bill 2015 , FDI in Insurance Sector is :

a. 74%

b. 26%

c. 49%

d. 51%

e. None of these

Ans : c. 49 %

9. England-based Willis Group Holdings, the third largest insurance brokerage in the world recently picked up 49 per cent stake in which Indian Insurance Brokerage Company ?

a. IndiaFirst Life Insurace

b. Almondz Insurance Brokers

c. Heritage Insurance Brokers

d. Bharat Re- Insurance Brokers

e. Aditya Birla Insurance Broker

Ans : b Almondz Insurance Brokers

10. Which of the following types of companies/organisations issue ULIP?

a. Insurance companies
b. Stock brokers
c. Banks
d. NABARD
e. RBI

Ans : a ULIP – Unit Linked Insurance Plan

11. Which of the following is the only public sector company in the field of life insurance?

a. General insurance company
b. New India assurance company
c. Oriental insurance company
d. SBI Life Insurance Company
e. Life Insurance Corporation of India

Ans : e Life Insurance Corporation of India

12. “A contract that pledges payment of an agreed upon amount to the person (or his/her nominee) on the happening of an event covered against” is technically known as

a. Death coverage
b. Insurance Premium
c. Life insurance
d. Savings for future
e. Provident fund

Ans : Life Insurance

13. With which of the following did the State Bank of India enter into a joint venture agreement for undertaking general insurance business?

a. New India Assurance Ltd.
b. Insurance Australia Group
c. Lehman Brothers Holdings Inc.
d. Allianz
e. BNP Paribas Cardif.

Ans : b. SBI General Insurance Company Limited is a joint venture between the State Bank of India and Insurance Australia Group (IAG). SBI owns 74% of the total capital and IAG the remaining 26%.

14. With which of the following did the State Bank of India enter into a joint venture agreement for undertaking Life insurance business?

a. New India Assurance Ltd.
b. Insurance Australia Group
c. Lehman Brothers Holdings Inc.
d. Allianz
e. BNP Paribas Cardif.

Ans : e . SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26%. 

15. Which of the following is the regulator of insurance sector in India?

a. RBI
b. AMFI
c. IRDA
d. SEBI
e. IRDAI

Ans : e. Recently IRDA was named IRDAI. 

16. Which of the following insurance companies gives the slogan Prithvi, Agni, Jal, Akash – Sab ki Surakhsa Hamare Paas?

a. Life Insurance Corporation
b. Oriental Insurance Company
c. New India Assurance
d. General Insurance Company
e. SBI Life Insurance

Ans : b. 

17. Which of the following is/are the various types of insurance?

1. Life insurance
2. Health insurance
3. Liability insurance
a. Only (1)
b. Only (1) and (2)
c. Only (2) and (3)
d. Onnly (1) and (3)
e. All the three

Ans : e

18. Which of the following public sector companies/organizations provides insurance cover to exporters?

a. RBI
b. ECGC
c. NABARD
d. SIDBI
e. IRDA

Ans : b

19. What is the minimum paid up capital required for a General Insurance Company to commence its operations in India ?

a. 200 Crore
b. 500 Crore
c. 250 Crore
d. 100 Crore
e. 300 Crore

Ans : d 100 Crore

20. Which bank recently became the first bank in India to fully own an insurance business ?

a. HDFC Bank
b. Kotak Mahindra Bank
c. ICICI Bank
d. IDBI Bank
e. Canara Bank

Ans : b. Kotak Mahindra Bank on 25 November 2014 became first bank in India to fully own an insurance business after Reserve Bank of India (RBI) gave permission to set up a wholly-owned non-life insurance company called Kotak General Insurance.

21. Which is the sole reinsurance company in the Indian insurance market ?

a. United India Insurance Company Limited
b. General Insurance Corporation of India
c. New India Assurance Company Limited
d. The Oriental Insurance Company
e. Life Insurance Corporation of India

Ans : b Reinsurance is insurance that is purchased by an insurance company.

22. Study the table below and find out which one of them is wrong :

Insurance Company Head Office
a. Oriental Insurance Company Ltd New Delhi
b. United India Insurance Company Limited Chennai
c. National Insurance Company Limited Kolkata
d. The New India Assurance Co. Ltd. Mumbai
e. General Insurance Corporation Hyderabad

Ans : e. General Insurance Corporation has its headquarters at Mumbai. 

23. Study the table below and find out which one o them is wrongly matched [ As on 5 March 2015 ]

Insurance Company Chairman
a. Life Insurance Corporation of India  Shri S. K. Roy
b. National Insurance Company Limited  Shri A.V. Girija Kumar
c. Oriental Insurance Company Ltd  Dr. A.K.Saxena
d. General Insurance Corporation  A K Roy
e. The New India Assurance Co. Ltd.  Milind Kharat

Ans : e 

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