JAIIB · IEIFS

Insurance Companies

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

Which regulatory authority governs the insurance sector in India?

A

The Insurance Regulatory and Development Authority of India (IRDAI) governs and supervises the insurance sector in India.

Q

What is the full form of IRDAI?

A

Insurance Regulatory and Development Authority of India

Q

In which year was IRDAI established as a statutory body?

A

IRDAI was established as a statutory body in 2000 under the IRDA Act, 1999.

Q

What is the minimum paid-up capital required to start a general insurance company in India?

A

Rupees 100 crore minimum paid-up capital required

Q

What are the two broad categories of insurance business in India?

A

Insurance business in India is broadly classified into Life Insurance and General (Non-Life) Insurance.

Q

Which principle of insurance states that the insured must not profit from a claim?

A

Principle of indemnity prevents profit from insurance claims

Q

Which public sector undertaking holds the largest share of life insurance business in India?

A

Life Insurance Corporation of India (LIC) is the largest public sector life insurer, established under the LIC Act, 1956.

Q

What is a 'money-back policy' in life insurance?

A

Policy paying periodic survival benefits during policy term

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