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 3 of 6

Discover more Topics under IC 14 Regulations of Insurance Business

Q21.
What is the maximum relief sought allowed when lodging a complaint with the Insurance Ombudsman?

a.

Rs. 50 lakhs

b.

Rs. 30 lakhs

c.

Rs. 20 lakhs

d.

Rs. 10 lakhs

Discuss
Answer: (c).Rs. 20 lakhs Explanation:The total relief sought must be within an amount of Rs. 20 lakhs when lodging a complaint with the Insurance Ombudsman.
Q22.
If both parties agree for mediation, within what timeframe will the Ombudsman give its Recommendations?

a.

Within 1 month

b.

Within 3 months

c.

Within 6 months

d.

Within 12 months

Discuss
Answer: (a).Within 1 month Explanation:If both parties agree for mediation, the Ombudsman shall give its Recommendations within 1 month.
Q23.
What is the perceived issue with the existing system of the Ombudsman under the Redressal of Public Grievances Rules, 1998?

a.

It is considered too effective by policyholders

b.

It lacks the jurisdiction to handle disputes between the insured and the insurer

c.

It is perceived as not effective enough to deal with complaints of policyholders

d.

It has jurisdiction over all types of insurance disputes

Discuss
Answer: (c).It is perceived as not effective enough to deal with complaints of policyholders Explanation:The existing system of the Ombudsman under the Redressal of Public Grievances Rules, 1998, is perceived by policyholders as not effective enough to deal with their complaints.
Q24.
What is one of the suggested amendments by the Law Commission regarding the Grievance Redressal Mechanism?

a.

Establishing a separate tribunal for disputes between insured and intermediaries

b.

Establishing a tribunal for disputes between insurers and insured

c.

Establishing a grievance redressal mechanism for disputes between insurers and intermediaries

d.

Establishing an appellate tribunal to hear appeals from orders passed by IRDA

Discuss
Answer: (d).Establishing an appellate tribunal to hear appeals from orders passed by IRDA Explanation:One of the suggested amendments by the Law Commission is to establish an Insurance Appellate Tribunal (IAT) to hear appeals from orders passed by IRDA.
Q25.
What is a requirement for every person seeking to file a claim before the Grievance Redressal Authority (GRA)?

a.

They must first approach the Insurance Appellate Tribunal (IAT)

b.

They must first approach the Insurance Ombudsman

c.

They must first approach the in-house grievance redressal mechanism of the insurance company

d.

They must first approach the Consumer Forum

Discuss
Answer: (c).They must first approach the in-house grievance redressal mechanism of the insurance company Explanation:Every person seeking to file a claim before the Grievance Redressal Authority (GRA) must first approach the in-house grievance redressal mechanism of the insurance company.
Q26.
What is the recourse available to a claimant if the decision of the in-house mechanism is not satisfactory or if no decision is given within 60 days?

a.

They can appeal directly to the Supreme Court

b.

They can file a complaint with the Consumer Forum

c.

They can approach the Grievance Redressal Authority (GRA) within 60 days from the date of receipt of the decision or the expiry of 60 days after making the claim, whichever is later

d.

They must accept the decision of the in-house mechanism

Discuss
Answer: (c).They can approach the Grievance Redressal Authority (GRA) within 60 days from the date of receipt of the decision or the expiry of 60 days after making the claim, whichever is later Explanation:If the decision of the in-house mechanism is not satisfactory or if no decision is given within 60 days, the claimant can approach the Grievance Redressal Authority (GRA) within 60 days from the date of receipt of the decision or the expiry of 60 days after making the claim, whichever is later.
Q27.
What role will the Grievance Redressal Authority (GRA) play in relation to the levy of fines and penalties under the Act?

a.

It will have the authority to levy fines and penalties

b.

It will not have any authority to levy fines and penalties

c.

It will have limited authority to levy fines and penalties

d.

It will delegate the authority to levy fines and penalties to the Ombudsmen

Discuss
Answer: (b).It will not have any authority to levy fines and penalties Explanation:The Grievance Redressal Authority (GRA) will not have any jurisdiction in relation to the levy of fines and penalties in relation to the offenses under the Act.
Q28.
Which of the following disputes falls within the jurisdiction of the Grievance Redressal Authority (GRA)?

a.

Disputes between the insurer and the government

b.

Disputes between the insurer and the shareholders

c.

Disputes between the insured and the insurer regarding premium payments

d.

Disputes between the insured and the medical professionals

Discuss
Answer: (c).Disputes between the insured and the insurer regarding premium payments Explanation:Disputes between the insured and the insurer regarding premium paid or payable in terms of the policy fall within the jurisdiction of the Grievance Redressal Authority (GRA).
Q29.
What is the proposed geographical spread for the Grievance Redressal Authorities (GRAs)?

a.

They should be concentrated only in major cities

b.

They should be dispersed as widely as geographically possible, with the possibility of having more than one GRA in a State

c.

They should only be established in State capitals

d.

They should be limited to specific regions based on insurance density

Discuss
Answer: (b).They should be dispersed as widely as geographically possible, with the possibility of having more than one GRA in a State Explanation:The proposed geographical spread for the Grievance Redressal Authorities (GRAs) is to disperse them as widely as geographically possible, with the possibility of having more than one GRA in a State, depending on the number of cases in that State.
Q30.
What would be the powers and jurisdiction of the Grievance Redressal Authorities (GRAs)?

a.

Limited to administrative tasks

b.

Includes all the powers and functions of the civil court, involving adjudication of issues of fact and law

c.

Advisory in nature, without any legal authority

d.

Only applicable to cases of minor disputes

Discuss
Answer: (b).Includes all the powers and functions of the civil court, involving adjudication of issues of fact and law Explanation:The powers and jurisdiction of the Grievance Redressal Authorities (GRAs) would include all the powers and functions of the civil court, involving adjudication of issues of fact and law.
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