Types of Insurance MCQ Quiz in తెలుగు - Objective Question with Answer for Types of Insurance - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

A correct answer is an option(3) i.e Both the statements are true.

• Commercial insurance plans are the plans which cover the risk involved in the business-related requirements.
  • These are the risk covers for all the sectors of the industry ranging from automotive, aviation, construction, chemicals, foods and beverages, textiles, pharmaceuticals, etc.
• Marine insurance covers the ships and the cargo inside the ship against its damage or loss.

Note -

• Commercial insurance and marine insurance comes under the category of general insurance.
• General insurance is defined as the insurance cover which does not come under the ambit of life insurance i.e marine insurance, commercial insurance, motor insurance, health insurance, etc.
• Health insurance is the insurance in which the policyholder is covered for medical and surgical expenses during the tenure of the policy. It can be further classified as : 
  • Comprehensive health insurance cover: It is the complete package of the health cover that includes almost all the healthcare facility and healthcare needs and ensures complete peace of mind, regardless of the situation of life.
  • Family Floater cover: It is the type of health insurance in which the whole family is covered under the single plan. Any family member covered under the policy can claim in case of hospitalization and surgical expenses.
  • Individual Health Insurance Cover: Individual Health Insurance Cover is a type of health insurance that covers the health expenses of an insured individual. These policies pay for surgical and hospitalization expenses of an insured individual till the cover limit is reached.
  • Group Health Cover: Group Health Insurance cover is bought by an employer for his employees. The premium in group insurance is lower than an individual health insurance policy.
    • Group health plans are usually standardized in nature and offer the same benefits to all employees.
  • Critical Illness Health Cover: Critical Illness Policy covers the expenses involved in treating life-threatening diseases like a tumor, permanent paralysis, etc.
    • These policies usually pay a lump sum amount to the insured persons on the diagnosis of serious diseases covered in the policy.
    • Unlike other policies, Individual Health Insurance and Family Floater Policy, hospitalization is not required, only the diagnosis of the disease is enough to claim the benefits.

• Motor insurance refers to policies that offer financial assistance in the event of accidents involving your car or bike. It is further classified into two categories:

  • ​Third-party liability insurance - It is the insurance policy that provides cover for the damage to another vehicle/person by our vehicle.

    • ​It covers damage to another person's vehicle or any bodily injuries and permanent disabilities through the accident by our vehicle.
    • It does not provide insurance to our own vehicle.
    • It is mandatory as per the Motor Vehicle Amendment Act,1988.

  • Comprehensive motor Insurance policy - It is the optional insurance policy that provides overall protection to our vehicle also along with third-party cover as in third-party liability insurance cover. 

    • It is a non-mandatory and optional insurance policy.

• Life insurance is a contract in which the insurer undertakes to pay the sum assured in case of death of the insured or after the expiry of the policy period, whichever is earlier.
• A consideration is paid by the insured to the insurer in exchange of covering the risk and it is known as premium.
• The risk is certainly going to happen in this case. 

The correct answer is 5 Years.

Key Points

• The minimum lock-in period for Unit-Linked Insurance Plans (ULIPs) is 5 Years.
  • Lock-in period is the time period for which the investment or the invested amount cannot be withdrawn or sold.
  • The period is commonly used for ULIPs,mutual funds, etc.

Additional Information

• Unit-Linked Insurance Plan (U.L.I.P.)
  • It ​is an insurance plan that offers the dual benefit of investment and life cover.
  • The premium paid towards a ULIP is divided into two parts.-
    • A part of it is contributed towards life cover.
    • The remaining part is invested in the fund of one's choice.
  • The investment component of ULIPs allows investors to invest money in the asset classes and funds of their choice – equity, debt, and balanced.
  • The plan also allows its investors to switch their investment from debt to equity and vice-versa.
  • In the event of the untimely and unfortunate demise of the policyholder, the nominated beneficiaries will be given the insurance and/or the fund value, whichever is higher, based on the type of unit linked insurance plan.
  • On surviving the term of the ULIP, the policyholder receives the maturity value.
• Death benefit to Policy Holders-
  • Type I ULIP
    • This pays higher of the assured sum value or the fund value to the nominee in case of the death of the policyholder.
  • Type II ULIP
    • This pays the assured sum value, plus the fund value to the nominee in case of the death of the policyholder.

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

Additional Information

The correct answer is Both A and B.

Key Points

• Insurance is a contract represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
• Insurance industry includes two sectors:
  • General Insurance
  • Life Insurance
• General Insurance covers non-life assets such as your home, vehicle, health, travel. They are generally annual contracts that need to be renewed every year.
• Life Insurance covers life.
• Life Insurance was introduced in India by Britishers by establishing Oriental Life Insurance Company at Calcutta in 1818.

 Thus, we can say that Insurance industry includes two sectors namely, General and Life Insurance.

The correct answer is ₹2 lakh.

Key Points

• The Life Insurance Corporation of India (LIC) has launched a new savings insurance policy called Dhan Rekha.
• Dhan Rekha was launched by LIC on 13th December 2021.
• The Dhan Rekha is a non-linked, non-participating, individual savings life insurance plan.
• Dhan Rekha plan details & benefits are as follows:

1. The minimum sum assured is ₹2 lakh, with no upper restriction on the maximum sum assured.
2. The minimum age to enter ranges from 90 days to 8 years.
3. The maximum age at the entrance can range from 35 to 55 years old.
4. Maturity and death benefits can be received in installments over a 5-year period.
5. Single premium or limited premium payment options of 10 years, 15 years, or 20 years are available.
6. Offers special premium rates for female lives and is also allowed for the third gender.

Additional Information

• Life Insurance Corporation of India(LIC) is headquartered in Mumbai, Maharashtra.
• MR Kumar is the Chairman of the Life Insurance Corporation of India(LIC).
• Life Insurance Corporation of India(LIC) of India was established in 1956.

The correct answer is option 2, i.e. Bharti AXA General Insurance.

• Bharti AXA General Insurance has become the first non-life insurer company of India to use Whatsapp to deliver policy and renewal documents.
• It will use Whatsapp chatbot for services like-policy documents delivery, renewal notices and claim intimation for its customers among other services.
• Bharti AXA General Insurance aims at selling private cars, two-wheelers and travel insurance through Whatsapp in the near future.
• To initiate service of  Whatsapp support, customers should give a missed call to the company on their specific number.
• The Whatsapp chatbot helps to locate the nearest cashless network of garages and hospitals when pin-code is entered.
• HQ - Mumbai
• MD and CEO - Sanjeev Srinivasan

The correct answer is 5 Years.

Key Points

• The minimum lock-in period for Unit-Linked Insurance Plans (ULIPs) is 5 Years.
  • Lock-in period is the time period for which the investment or the invested amount cannot be withdrawn or sold.
  • The period is commonly used for ULIPs,mutual funds, etc.

Additional Information

• Unit-Linked Insurance Plan (U.L.I.P.)
  • It ​is an insurance plan that offers the dual benefit of investment and life cover.
  • The premium paid towards a ULIP is divided into two parts.-
    • A part of it is contributed towards life cover.
    • The remaining part is invested in the fund of one's choice.
  • The investment component of ULIPs allows investors to invest money in the asset classes and funds of their choice – equity, debt, and balanced.
  • The plan also allows its investors to switch their investment from debt to equity and vice-versa.
  • In the event of the untimely and unfortunate demise of the policyholder, the nominated beneficiaries will be given the insurance and/or the fund value, whichever is higher, based on the type of unit linked insurance plan.
  • On surviving the term of the ULIP, the policyholder receives the maturity value.
• Death benefit to Policy Holders-
  • Type I ULIP
    • This pays higher of the assured sum value or the fund value to the nominee in case of the death of the policyholder.
  • Type II ULIP
    • This pays the assured sum value, plus the fund value to the nominee in case of the death of the policyholder.

A correct answer is an option(4) i.e 5 years.

• ULIP ( Unit Linked Insurance Plan) is the life insurance plan in which the insurer provides risk cover, as well as the investment option to the policyholder in which part of the installment goes for the investment and part of the installment, goes for the securing life of the policyholder.
• The investments made are subject to risks associated with the capital markets, the risks in the plan are bear by the policyholder.
• ULIP plans come with a lock-in period of 5 years.
• The first ULIP was launched by the Unit Trust of India in the year 2001.
• Investment in ULIPs is eligible for tax benefits up to a maximum of Rs. 1.5 lakhs under Section 80c of the Income Tax Act. 

Note - 

• Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.
• UTI is the first mutual fund company established in India.
• Life Insurance refers to a policy or cover whereby the policyholder can ensure financial freedom for his/her family members after death.

A correct answer is an option(4) i.e 5 years.

• ULIP ( Unit Linked Insurance Plan) is the life insurance plan in which the insurer provides risk cover, as well as the investment option to the policyholder in which part of the installment goes for the investment and part of the installment, goes for the securing life of the policyholder.
• The investments made are subject to risks associated with the capital markets, the risks in the plan are bear by the policyholder.
• ULIP plans come with a lock-in period of 5 years.
• The first ULIP was launched by the Unit Trust of India in the year 2001.
• Investment in ULIPs is eligible for tax benefits up to a maximum of Rs. 1.5 lakhs under Section 80c of the Income Tax Act. 

Note - 

• Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India.
• UTI is the first mutual fund company established in India.
• Life Insurance refers to a policy or cover whereby the policyholder can ensure financial freedom for his/her family members after death.