Development of Insurance Legislation in India and Insurance Act 1938 MCQs

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Development of Insurance Legislation in India and Insurance Act 1938 MCQs | Page 4 of 5

Discover more Topics under IC 14 Regulations of Insurance Business

Q31.
What empowers the Central Legislature to regulate the insurance industry in India?

a.

State Governments

b.

Central Government

c.

Local Authorities

d.

Autonomous Bodies

Discuss
Answer: (b).Central Government Explanation:The Central Legislature is empowered to regulate the insurance industry in India, ensuring uniformity of laws throughout the territories of India.
Q32.
Which company, established in Calcutta in 1818, was the first to start life insurance operations in India?

a.

Bombay Life Assurance Company

b.

Madras Equitable Life Insurance Society

c.

Oriental Life Insurance Company

d.

Indian Mercantile Insurance Company Ltd.

Discuss
Answer: (c).Oriental Life Insurance Company Explanation:The Oriental Life Insurance Company, established in Calcutta in 1818, was the first to start life insurance operations in India.
Q33.
In which year was the first statutory measure introduced in India to regulate the life insurance business?

a.

1907

b.

1912

c.

1956

d.

1972

Discuss
Answer: (b).1912 Explanation:The first statutory measure to regulate the life insurance business in India was the Indian Life Assurance Companies Act, 1912, passed in 1912.
Q34.
What was the name of the first general insurance company established by an Indian in Bombay in 1907?

a.

Indian Mercantile Insurance Company Ltd.

b.

Bombay General Insurance Company

c.

Oriental General Insurance Company

d.

National General Insurance Company

Discuss
Answer: (a).Indian Mercantile Insurance Company Ltd. Explanation:The first general insurance company established by an Indian was Indian Mercantile Insurance Company Ltd. in Bombay in 1907.
Q35.
In which year was the life insurance business nationalized, leading to the formation of the Life Insurance Corporation (LIC) of India?

a.

1912

b.

1956

c.

1972

d.

1818

Discuss
Answer: (b).1956 Explanation:In 1956, the life insurance business was nationalized, and the operations of companies were merged to form the Life Insurance Corporation (LIC) of India.
Q36.
What significant event occurred with the introduction of the General Insurance Business (Nationalisation) Act, 1972?

a.

Introduction of private insurance companies

b.

Globalization of the insurance industry

c.

Nationalization of the general insurance business

d.

Formation of the insurance regulatory authority

Discuss
Answer: (c).Nationalization of the general insurance business Explanation:The general insurance business was nationalized in 1972 with the introduction of the General Insurance Business (Nationalisation) Act.
Q37.
When was the General Insurance Corporation (GIC) formed, and what role was it initially assigned?

a.

Formed in 2000, tasked with liberalizing the insurance sector

b.

Formed in 1972, assigned as a holding company for 4 PSU general insurance companies

c.

Formed in 1990, designed to regulate private sector insurance

d.

Formed in 1985, responsible for merging insurance operations into 4 companies

Discuss
Answer: (b).Formed in 1972, assigned as a holding company for 4 PSU general insurance companies Explanation:GIC was formed in 1972 and initially served as the holding company for 4 PSU general insurance companies, merging their operations.
Q38.
In which year were reforms initiated by the Government, leading to the formation of the Insurance Regulatory and Development Authority (IRDA) and the liberalization of the insurance sector?

a.

1972

b.

1985

c.

1990

d.

2000

Discuss
Answer: (d).2000 Explanation:Reforms were initiated in the year 2000, leading to the formation of IRDA and the liberalization of the insurance sector.
Q39.
What is the maximum Foreign Direct Investment (FDI) allowed in the insurance sector according to current rules?

a.

50%

b.

26%

c.

75%

d.

100%

Discuss
Answer: (b).26% Explanation:As per current rules, FDI up to 26% is allowed in the insurance sector.
Q40.
How many councils does the Insurance Association of India (IAI) have, and what are their names?

a.

One - Insurance Council

b.

Two - Financial Council and Insurance Council

c.

Two - Life Insurance Council and General Insurance Council

d.

Three - Insurance Council, Regulation Council, and Investment Council

Discuss
Answer: (c).Two - Life Insurance Council and General Insurance Council Explanation:The Insurance Association of India (IAI) has two councils: Life Insurance Council and General Insurance Council.
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