Question

How are premiums typically collected by insurance companies in India?

a.

In arrears

b.

At the time of claim settlement

c.

In advance at the time of admission of a member to the group

d.

Only through bank transfers

Posted under IC 14 Regulations of Insurance Business

Answer: (c).In advance at the time of admission of a member to the group Explanation:Premiums are typically collected by insurance companies in India in advance at the time of admission of a member to the group. This ensures that funds are available to settle claims of members who suffer losses, as a fund is created from the premiums collected.

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Q. How are premiums typically collected by insurance companies in India?
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