Insurance — Part 1 MCQs with Explanations

The Oriental Life Insurance Company was started by Europeans in Calcutta in 1818 to cater to the growing numbers of Britishers in India.

Life Insurance sector was nationalised in 1956. Life insurance in India was completely nationalised on 19 th January 1956 , through the Life Insurance Corporation Act.

Triton Insurance Company Ltd was established in 1850. The first General Insurance Company in India was Triton Insurance Company Ltd. It was set up under the control of British.

The Indian Mercantile Insurance was established in 1907. It was the first company was set up to transact all classes of general insurance business in India.

The general insurance council was formed in 1957. The General Insurance Council was established under the Indian Insurance Act 1938. It designed a code of conduct to ensure fair business practices.

The Export Credit Guarantee Corporation of India was established in 1957. ECGC Ltd. (Formerly known as Export Credit Guarantee Corporation of India Ltd.) wholly owned by Government of India, was set up in 1957 with the objective of promoting exports from he country by providing credit risk insurance and related services for exports.

The general insurance business was nationalised in 1973, with effect from 1 January 1973. It was the nationalization of 107 insurance companies into one main company called General Insurance Corporation of India and its four subsidiary companies with exclusive privilege for transacting general insurance business.

As per the General Insurance Business (Nationalisation) Act, 1972, the General Insurance Corporation of India (GIC) was founded in 1972 and has headquarters in Mumbai. It was formed to control and operate the business of general insurance in India.

In 1999 the Insurance Regulatory and Development Authority (IRDA) was constituted to regulate and develop the insurance industry and was incorporated in April 2000. The IRDAI's headquartered in Hyderabad, Telangana, where it moved from Delhi in 2001.

In year 1973 New India Assurance Co Ltd was nationalized. New India Assurance was nationalised in 1973, with the merger of Indian companies.

Parliament on 22 March 2021 passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49% in an attempt to attract more overseas insurance players to India.

Largest Life Insurance Company in India is Life Insurance Corporation of India (LIC). LIC is Indian state-owned insurance group and investment company.

National Insurance Company Limited (NICL) is the oldest non-life general insurance company of India. It was established on 5th December 1906 at Kolkata.

Life Insurance Corporation was found on 1 September, 1956. Life Insurance Corporation of India commenced its functioning as a corporate body from September 1, 1956. Its working is governed by the LIC Act.

In 1906, National Insurance Company Limited (NICL) was incorporated. National Insurance Company was set up largely on the nationalism principles of Swaraj (self-government). NICL was nationalized after 66 years in the year 1972.

Headquarter of LIC is situated at Mumbai. Life Insurance Corporation is an Indian owned largest insurance company started in the year 1956. Its head quarters are located in Mumbai and had total funds of about 1433103.14 crore Rupees and about 367.82 lakh policies sold every year.

The Oriental Life Insurance Company was started by Europeans in Calcutta in 1818 to cater to the growing numbers of Britishers in India.

Insurance is listed in the Constitution of India in Seventh scheduled as Union List subject.

Insurance is legislated by Central Government. Insurance in India covers both, public and private sector organisations. It is listed in the Seventh Schedule as a Union List subject in the Constitution of India. It can only be legislated by the Central government.

Maximization of Profit is not the principle of insurance. There are seven basic principles that create an insurance contract between the insured and the insurer: Utmost Good Faith, Insurable Interest, Proximate Cause, Indemnity, Subrogation, Contribution and Loss Minimization.

In year 1919 New India Assurance Co Ltd was found. Founded by Sir Dorabji Tata in 1919. It was founded by Sir Dorabji Tata in 1919, and was nationalised in 1973. Previously it was a subsidiary of the General Insurance Corporation of India (GIC).

New India Assurance Co Ltd, today, is a 100 % Govt owned multinational general insurance company.

New India Assurance Co Ltd has branches in 28 countries. New India Assurance Company comprises of its operations in 28 different countries worldwide. This is one of the reasons why New India Assurance is now India’s largest non-life insurance company.

A free look period often lasts 15 days (depending on the insurer), allowing the contract holder to decide whether or not to keep the insurance policy; if he or she is not satisfied and wishes to cancel, the policy purchaser can receive a full refund.

The headquarters of New India Assurance Co Ltd is located in Mumbai. New India Assurance Building, 87, M G Road, Fort, Mumbai. MUMBAI MAHARASHTRA 400001.

The function of IRDA is to regulate insurance business in India. For many years the insurance sector of India was protected. The IRDA Act of 1999 allowed the entry of private companies in the insurance sector. It also allowed for 26% investment by foreign companies.

TPA stands for Third Party Administrator. It is an intermediary company between an insured and insurer. It provides a supporting role to the insurer in terms of claim settlement. This body obtains a license from IRDA in order to function in the insurance industry.

TPA is licenced by the IRDA. TPA shall obtain from the IRDA Authority a license prior to commission of functions.

Hospital is a health care provider. A healthcare provider is an institution (such as a hospital or clinic) or person (such as a physician, nurse, allied health professional or community health worker) that provides preventive, curative, promotional, rehabilitative or palliative care services in a systematic way to individuals, families or communities.

New India Assurance Co Ltd is a type of General Insurance Company. Life insurance company is one which provides insurance for death. General Insurance company is one which deals with all other types of insurance other than death like vehicle insurance, House Insurance etc. It is also called non-life insurance.

Life Insurance Companies Act, 1912 was the first Act to regulate life insurance industry in India. In order to regulate these insurance companies, Life Insurance Companies Act and Provident Fund Act were passed in 1912. Evolution of insurance industry has undergone three phases, Pre-Nationalisation, Nationalisation and Privatisation.

An automobile insurance is an example of Broad Form Insurance. A customer may require glass insurance as the driver is frequently on the highway and obtains a lot of chips in the front window.

Broad Form insurance type of insurance usually requires higher premium. Broad form insurance coverage extends beyond the basics to include rare events that may be of serious risk to the insured. This type of insurance usually requires that a higher premium, and often a deductible, be paid.

Pre-Authorized Chequing is an authorization by the insured to allow the Insurance Company to automatically withdrawal their insurance payments from their chequing account.

Standard Policy Form is an insurance policy form that is designed to be used by many different insurers and has exactly the same provisions, regardless of the insurer issuing the policy.

AAA/Stable is the CRISIL rating for New India Assurance Co Ltd located. CRISIL has reaffirmed its 'AAA/Stable' rating on The New India Assurance Co Ltd (New India Assurance), indicating that the company has the highest degree of financial strength to honour its policyholders' obligations.

Presently NIACL provides following 5 types of insurance: Personal Insurance, Commercial Insurance, Industrial Insurance, Industrial Insurance, Liability Insurance and Social Insurance

Previously it was a subsidiary of the General Insurance Corporation of India (GIC). But when GIC became a re-insurance company as per the IRDA Act 1999, its four primary insurance subsidiaries New India Assurance, United India Insurance, Oriental Insurance and National Insurance got autonomy.

The head office of Agriculture Insurance Company of India Limited (AIC) is in New Delhi.

Insurance Brokers Association of India (I.B.A.I.) was incorporated as a Company under Section 25 of the Companies Act, 1956 vide Certificate of Incorporation No. U 67120 MH 2001 NPL 132860 dated 25th July 2001. B stands for Brokers.