Insurance Awareness MCQ Quiz - Objective Question with Answer for Insurance Awareness - Download Free PDF

Which of the following regulatory bodies regulates the insurance sector in India?

1. IRDAI
2. NABARD
3. FSSAI
4. More than one of the above
5. None of the above

Answer (Detailed Solution Below)

Insurance Awareness Question 1 Detailed Solution

The correct answer is IRDAI.

• IRDAI regulatory bodies regulate the insurance sector in India.

​ Key Points

• The full form of IRDAI is the Insurance Regulatory and Development Authority of India.
• It is a regulatory body under the jurisdiction of the Ministry of Finance, Government of India.
• And is tasked with regulating and promoting the insurance and re-insurance industries in India.
  • Founded: 1999
  • Sector: Insurance
  • Headquarters: Hyderabad
  • Chairperson: Subhash Chandra Khuntia

  

  Additional Information

  System	Full-Form	Founded	Sector	Headquarters	Chairperson
  TRAI	Telecom Regulatory Authority of India	1997	Telecommunications	New Delhi	Ram Sewak Sharma
  NABARD	National Bank for Agriculture and Rural Development	12 July 1982	Ministry of Finance	Mumbai	Harsh Kumar Bhanwala
  FSSAI	Food Safety and Standards Authority of India	2008	Food safety	New Delhi	Rajesh Bhushan

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  Insurance Awareness Question 2:

  In March 2024, ICICI Lombard General Insurance Company Ltd acquired _____ stake in Kotak Mahindra Bank for Rs 245 crore.

  Answer (Detailed Solution Below)

  Option 2 : 0.7%

  Insurance Awareness Question 2 Detailed Solution

  The correct answer is 0.7%.

  

  In News

  • ICICI Lombard acquires 0.7% stake of Kotak Mahindra Bank for ₹245 crore.

  

  Key Points

  • ICICI Lombard General Insurance Company Ltd announced its acquisition of a 0.7% stake in Kotak Mahindra Bank, involving an investment of ₹245 crore.
    • By acquiring a stake in Kotak Mahindra Bank, the insurance company aims to enhance its market presence and explore potential synergies in the financial landscape.
    • ICICI Lombard has also allocated equity shares under its Employees Stock Option Scheme-2005, emphasizing its dedication to rewarding and motivating its workforce.
    • This strategic investment is expected to generate interest within the financial community, signaling the potential for collaboration and mutual growth between ICICI Lombard and Kotak Mahindra Bank.

    

    Additional Information

    • ICICI Lombard General Insurance Company Ltd
      • Founded in - 2000
      • HQ - Mumbai
      • CEO - Mr. Sanjeev Mantri
      • Established in 1985
      • HQ - Mumbai
      • CEO - Ashok Vaswani
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      Insurance Awareness Question 3:

      Consider the following statements: Which of the following statements is/are correct? A. The insurance sector has received close to Rs 58,000 crore as a foreign direct investment (FDI) in the last 9 years on the back of further liberalization of overseas capital flow norms by the government
      B. The government increased the permissible FDI limit from 26 percent in 2014 to 49 percent in 2015 and then to 74 percent in 2021.
      C. However, the permissible FDI limit for insurance intermediaries was increased to 100 percent in 2019.

      1. Only A
      2. Only B
      3. Only C
      4. Both A and B
      5. All A, B and C

      Answer (Detailed Solution Below)

      Option 5 : All A, B and C

      Insurance Awareness Question 3 Detailed Solution

      The correct answer is All A, B, and C.

      

      In News

      • The insurance sector has seen an FDI of around Rs 54000 crore over the last nine years.

      

      Key Points

      • The insurance sector has received close to Rs 54,000 crore as a foreign direct investment (FDI) in the last 9 years on the back of further liberalization of overseas capital flow norms by the government.
      • The government increased the permissible FDI limit from 26 percent in 2014 to 49 percent in 2015 and then to 74 percent in 2021.
      • However, the permissible FDI limit for insurance intermediaries was increased to 100 percent in 2019.
      • The number of insurance players increased from 53 to 70 as of January 2024.
      • Insurance penetration increased from 3.9 per cent in 2013-14 to 4 per cent in 2022-23 while insurance density rose from USD 52 in 2013-14 to USD 92 in 2022-23.
      • Insurance penetration and density are two metrics, among others, often used to assess the level of development of the insurance sector in a country.
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      Insurance Awareness Question 4:

      In March 2024, Name the Insurance Company that has recently launched a comprehensive women's health insurance plan 'Health PowHER'.

      1. Star Health and Allied Insurance
      2. Kotak Mahindra Life Insurance
      3. Aditya Birla Health Insurance
      4. Ageas Federal Life Insurance
      5. Future Generali India Life Insurance

      Answer (Detailed Solution Below)

      Option 5 : Future Generali India Life Insurance

      Insurance Awareness Question 4 Detailed Solution

      The correct answer is Future Generali India Life Insurance.

      

      In News

      • Future Generali India’s newly launched women’s health insurance plan.

      

      Key Points

      • Future Generali India Insurance Company (FGII), a private general insurer, recently launched its latest women’s health insurance plan, tailored to address women’s distinctive needs.
        • FGII’s “HEALTH POWHER” initiative aims to cater to the diverse needs of women throughout various stages of their lives.
        • This product is designed through rigorous research- by the women, for the women - and we are proud to put it out to the market.
        • The policy has several key features, including increased limits for female cancer treatment, coverage for puberty and menopause-related disorders, and emphasis on outpatient care for physical and mental well-being with mental illness benefits restored to 200%.
        • The policy encompasses a range of value-added services such as annual health check-ups, preventive care packages, fitness programs, diet and nutrition guidance, spa wellness treatments, gynaecological consultations, yoga sessions, and more.

        

        Additional Information

        • Future Generali India Life Insurance
          • ​Established in - 2007
          • HQ - Mumbai
          • CEO - Anup Rau
          • Founded in - 2006​
          • HQ - Chennai , India
          • MD - Dr S Prakash
          • Founded in - 2016​
          • HQ - Maharashtra, India
          • CEO - Mayank Bathwal
          • ​Founded in - 2008
          • HQ - Mumbai
          • CEO - Vighnesh Shahane
          • ​Established in 2001
          • HQ - Mumbai
          • CEO - Mahesh Balasubramanian
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          Insurance Awareness Question 5:

          Consider the following statements: Which of the following statements is/are correct? A. Farmers' enrollment under Pradhan Mantri Fasal Bima Yojana (PMFBY) has increased by 27% in the financial year 2023-24 (FY24).
          B. So far, around 56.80 crore farmers have enrolled under PMFBY and more than 23.22 crore farmers have received claims.
          C. Since 2016, Farmers have paid around Rs 31,139 crore as their share of premium against which they have claimed over Rs 1,55,977 crore.

          1. Only A
          2. Only B
          3. Only C
          4. Both A and C
          5. All A, B and C

          Answer (Detailed Solution Below)

          Option 5 : All A, B and C

          Insurance Awareness Question 5 Detailed Solution

          The correct answer is All A, B, and C .

          

          In News

          • Enrolment under PMFBY increased by 27 % in the current year so far.

          

          Key Points

          • Farmers' enrollment under Pradhan Mantri Fasal Bima Yojana (PMFBY) has increased by 27% in the financial year 2023-24 (FY24).
          • So far, around 56.80 crore farmers have enrolled under PMFBY and more than 23.22 crore farmers have received claims.
          • Since 2016, Farmers have paid around Rs 31,139 crore as their share of premium against which they have claimed over Rs 1,55,977 crore.
          • The third largest insurance scheme globally in terms of premium, the PM Fasal Bima Yojana launched in 2016, shields farmers from crop loss or damage arising out of unforeseen events.
          • In the past 8 Years of implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY) – 56.80 crore farmer applications have been enrolled and over 23.22 crore farmer applicants received claims.

          

          Additional Information

          • Pradhan Mantri Fasal Bima Yojana (PMFBY)
            • Launched in - 2016
            • Aim - To provide financial support to farmers suffering crop damage arising out of natural calamities.
            • Payment of Premium - Maximum of 2% of the total premium of the insured amount for Kharif crops, 1.5 % for rabi food crops and oilseeds as well as 5% for commercial crops.
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            Top Insurance Awareness MCQ Objective Questions

            Insurance Awareness Question 6

            Which of the following regulatory bodies regulates the insurance sector in India?

            Answer (Detailed Solution Below)

            Option 4 : IRDAI

            Insurance Awareness Question 6 Detailed Solution

            The correct answer is IRDAI.

            • IRDAI regulatory bodies regulate the insurance sector in India.

            

            ​ Key Points

            • The full form of IRDAI is the Insurance Regulatory and Development Authority of India.
            • It is a regulatory body under the jurisdiction of the Ministry of Finance, Government of India.
            • And is tasked with regulating and promoting the insurance and re-insurance industries in India.
              • Founded: 1999
              • Sector: Insurance
              • Headquarters: Hyderabad
              • Chairperson: Subhash Chandra Khuntia

              

              Additional Information

              System	Full-Form	Founded	Sector	Headquarters	Chairperson
              TRAI	Telecom Regulatory Authority of India	1997	Telecommunications	New Delhi	Ram Sewak Sharma
              NABARD	National Bank for Agriculture and Rural Development	12 July 1982	Ministry of Finance	Mumbai	Harsh Kumar Bhanwala
              FSSAI	Food Safety and Standards Authority of India	2008	Food safety	New Delhi	Rajesh Bhushan

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              Insurance Awareness Question 7

              In August 2022, which of the following has tightened the anti-money laundering rules?

              Answer (Detailed Solution Below)

              Option 3 : IRDAI

              Insurance Awareness Question 7 Detailed Solution

              The correct answer is IRDAI.

              

              Key Points

              • IRDAI has tightened the anti-money laundering rules.
              • The key change is that exemptions & relaxations from the guidelines for companies have been done away with.
              • Now no life, general, or health insurer can claim any relaxations to comply with money-laundering rules, as set out by the RBI.
              • IRDAI has also made 'level of risk assessment' a function of the size of the business of the companies.

              

              Additional Information

              • IRDAI is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India.
              • Headquarters - Hyderabad.

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              Insurance Awareness Question 8

              Any such transaction, in which property is transferred in the name of one person and payment is made by another person, is called _______.

              1. Hawala
              2. Benami transaction
              3. Money laundering
              4. Black money

              Answer (Detailed Solution Below)

              Option 2 : Benami transaction

              Insurance Awareness Question 8 Detailed Solution

              The correct answer is a Benami transaction.

              

              Key Points

              • In a Benami transaction, a property is transferred or held by one person (Mr A, the ‘Benamidar’) and the consideration for such property is paid by another person (Mr B, the ‘beneficial owner’) for whose benefit such property is held. The following transactions also fall under the definition of Benami transactions:
                • Where a property related transaction is carried out under a fictitious name – The Benamidar can also be a fictitious person
                • Where the owner of the property has no knowledge / denies having any knowledge of the ownership of such property
                • Where the person providing the consideration is untraceable or fictitious – the identity of the beneficial owner may also be unknown.

                

                Additional Information

                • Hawala is an informal method of transferring money without any physical money actually moving. It is described as a "money transfer without money movement".
                • Hawala is used today as an alternative remittance channel that exists outside of traditional banking systems.
                • Transactions between hawala brokers are made without promissory notes because the system is heavily based on trust and the balancing of hawala brokers' books.
                • KEY TAKEAWAYS
                  • Hawala (sometimes referred to as underground banking) is a way to transmit money without any currency actually moving.
                  • Hawala networks have been used since ancient times, and today are widely found among ex-pats sending remittances home.
                  • Hawala provides anonymity in its transactions, as official records are not kept and the source of money that is transferred cannot be traced.
                  • Hawala is also finding a footing in the world of financial technology, which grants access to money transfers among the unbanked and underbanked populations of the world.
                  • Some countries, like India, have made hawala illegal due to its informal nature and absence of regulation or oversight
                  • It is a crime in many jurisdictions with varying definitions.
                  • Also, the unaccounted money that is concealed from the tax administrator is called black money.