Dispute Resolution Mechanism MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Dispute Resolution Mechanism, a fundamental topic in the field of IC 14 Regulations of Insurance Business. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Dispute Resolution Mechanism MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Dispute Resolution Mechanism mcq questions that explore various aspects of Dispute Resolution Mechanism problems. Each MCQ is crafted to challenge your understanding of Dispute Resolution Mechanism principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 14 Regulations of Insurance Business tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Dispute Resolution Mechanism MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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Dispute Resolution Mechanism MCQs | Page 2 of 6

Discover more Topics under IC 14 Regulations of Insurance Business

Q11.
What is the time limit for filing an appeal before the State Commission against the order of the District Forum?

a.

15 days

b.

30 days

c.

45 days

d.

60 days

Discuss
Answer: (b).30 days Explanation:An appeal against the order of the District Forum must be filed before the State Commission within a period of 30 days.
Q12.
What is the required deposit for filing an appeal before the State Commission against the order of the District Forum?

a.

40% of the amount awarded

b.

50% of the amount awarded or Rs 25,000, whichever is less

c.

60% of the amount awarded

d.

70% of the amount awarded or Rs 30,000, whichever is less

Discuss
Answer: (b).50% of the amount awarded or Rs 25,000, whichever is less Explanation:To file an appeal before the State Commission against the order of the District Forum, a deposit of 50% of the amount awarded or Rs 25,000, whichever is less, is required.
Q13.
What is the time limit for filing an appeal before the National Commission against the order of the State Commission?

a.

15 days

b.

30 days

c.

45 days

d.

60 days

Discuss
Answer: (b).30 days Explanation:An appeal against the order of the State Commission must be filed before the National Commission within a period of 30 days.
Q14.
What is the prescribed deposit for filing an appeal before the National Commission against the order of the State Commission?

a.

40% of the amount awarded

b.

50% of the amount awarded or Rs 35,000, whichever is less

c.

60% of the amount awarded

d.

70% of the amount awarded or Rs 40,000, whichever is less

Discuss
Answer: (b).50% of the amount awarded or Rs 35,000, whichever is less Explanation:To file an appeal before the National Commission against the order of the State Commission, a deposit of 50% of the amount awarded or Rs 35,000, whichever is less, is required.
Q15.
What is the purpose of the "Redressal of Public Grievances Rules, 1998"?

a.

To regulate insurance companies

b.

To exempt insurance companies from grievance redressal

c.

To resolve complaints against insurance companies in a cost-effective, efficient, and impartial manner

d.

To provide legal immunity to insurance companies

Discuss
Answer: (c).To resolve complaints against insurance companies in a cost-effective, efficient, and impartial manner Explanation:The "Redressal of Public Grievances Rules, 1998" aim at resolving complaints relating to the settlement of disputes with insurance companies in a cost-effective, efficient, and impartial manner.
Q16.
Who appoints the ombudsman to address grievances from policyholders?

a.

Insurance companies

b.

The government

c.

Policyholders themselves

d.

The governing body

Discuss
Answer: (d).The governing body Explanation:The governing body appoints one or more persons as ombudsman to address grievances from policyholders.
Q17.
Who can approach the Ombudsman for redressal of grievances related to insurance policies?

a.

Individuals and organizations

b.

Policyholders of life insurance only

c.

Policyholders of general insurance only

d.

Individuals who have taken insurance policies on personal lines or their legal heirs

Discuss
Answer: (d).Individuals who have taken insurance policies on personal lines or their legal heirs Explanation:Any aggrieved individual who has taken an insurance policy on personal lines, or if deceased, their legal heir(s) under such policy, can approach the Ombudsman.
Q18.
What type of insurance policies are considered under personal lines?

a.

Policies taken by firms and organizations

b.

Policies taken by individuals for commercial purposes

c.

Policies taken by individuals in an individual capacity

d.

Policies taken by individuals for collective purposes

Discuss
Answer: (c).Policies taken by individuals in an individual capacity Explanation:Insurance on personal lines refers to policies taken or given in an individual capacity, such as life insurance, personal accident insurance, mediclaim insurance, and insurance of personal property of the individual.
Q19.
What is a prerequisite condition for lodging a complaint with the Insurance Ombudsman?

a.

The complaint must involve a policyholder who is a legal expert

b.

The complaint must be related to a business insurance policy

c.

The complaint must be about a personal lines insurance and within the terms of reference of the Insurance Ombudsman

d.

The complaint must be filed within 6 months of the event

Discuss
Answer: (c).The complaint must be about a personal lines insurance and within the terms of reference of the Insurance Ombudsman Explanation:The prerequisite condition for lodging a complaint with the Insurance Ombudsman is that the complaint must be about a personal lines insurance and within the terms of reference of the Insurance Ombudsman.
Q20.
How long does a representation to the insurance company need to go unanswered before lodging a complaint with the Insurance Ombudsman?

a.

At least 6 months

b.

At least 3 months

c.

At least 1 year

d.

At least 1 week

Discuss
Answer: (b).At least 3 months Explanation:A representation should have been made to the insurance company, and either an unsatisfactory reply should have been received or the representation should stand unreplied for at least 1 month before lodging a complaint with the Insurance Ombudsman.
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