Here, we are going to present 15 questions of the Insurance domain.
1. What is Insurance?
Insurance is a deal/contract or a promise, represented by a policy. In which an individual or object receives financial protection or reimbursement against the losses from an insurance company.
2. What are the different types of Insurance Coverage?
The insurance coverages are divided into two categories:
- General or non-life insurance
- Life insurance
3. What do you mean by the terms ‘Insurer’ and ‘Insured’?
Insured is the one who holds the insurance and Insurer is the company that gives the coverage.
4. Who is the beneficiary?
A beneficiary is the one whom we nominated for the insured amount in case of our death or loss.
5. What is Premium?
Premium is the amount that is to be paid for a contract of insurance to the insurance company. It is the sum that a person pays monthly, quarterly, or annually according to their plan, in return for the coverage he/she has taken from the respected insurer company.
6. What is the no-claim bonus?
No claim bonus is a benefit for those who have not claimed insurance amount during the preceding year of cover. This will lower the premium to the following year.
7. What is the ‘declaration page’ in the insurance policy?
Declaration page’ in an insurance policy, bears all the information of the policyholder like name, vehicle, address, information, type of coverage, and loss payee information.
8. What is Co-insurance?
Co-insurance is a kind of a policy where the sum insured amount is huge. Therefore there is multiple shareholder company for that particular policy. The share will be different for each company. One has to keep a major share and others have some.
For example, Marine insurance has a huge sum insured, If any company like NIA takes 70% ownership then few other companies like ICICI or Bajaj Allianz will take the rest share.
9. What is the sum insured amount?
Sum insured amount is the total amount of the policy which should be paid by the insured person.
10. What are General Liability insurances?
Every business, even if it is home-based, needs a liability coverage policy. This policy provides both protection and damages if you, your employees, or your products or services cause or are alleged to cause bodily injury or property damage to a third party.
11. What is the full form of TPA?
The full form of TPA is Third Party Administrator.
12. What do you mean by IRDAI?
The full form of IRDAI is the Insurance Regulatory and Development Authority of India. Many of you must have heard about “IRDA”. It is nothing but the Guidelines of the Insurance Regulatory and Development Authority. The authority acts as the regulator or control of the insurance industry in India and oversees the functioning of life insurance and general insurance companies operating in the country. The main objective of IRDA is to protect the interest of the policyholder and to regulate the insurance industry.
13. What do you mean by the term “Annuity”?
An annuity is a term used for the regular amount paid by the insurance company to the insured, after a certain period. The payment can be monthly or quarterly, this is often done to supplement income after retirement.
14. ULIP stands for?
ULIP stands for Unit Linked Insurance Plan, which is a multi-faceted life insurance product.
15. LIC Act was passed in which year?
Life Insurance Corporation (LIC) of India, Act was passed by the Parliament on June 18, 1956, and came into effect on July 1, 1956.