IRDA Functions and Insurance Councils MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on IRDA Functions and Insurance Councils, 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 IRDA Functions and Insurance Councils 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 IRDA Functions and Insurance Councils mcq questions that explore various aspects of IRDA Functions and Insurance Councils problems. Each MCQ is crafted to challenge your understanding of IRDA Functions and Insurance Councils 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 IRDA Functions and Insurance Councils MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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IRDA Functions and Insurance Councils MCQs | Page 11 of 12

Discover more Topics under IC 14 Regulations of Insurance Business

Q101.
What is the role of IRDA in the context of insurance business in India?

a.

To provide insurance coverage to the public

b.

To promote competition among insurers

c.

To regulate and oversee the insurance industry

d.

To sell insurance policies directly to consumers

Discuss
Answer: (c).To regulate and oversee the insurance industry Explanation:IRDA is the regulator of insurance business in India, indicating its role in regulating and overseeing the insurance industry.
Q102.
What are the objectives of the Life Insurance Council's Executive Committee?

a.

To maximize profits for life insurance companies

b.

To aid, advise, and assist insurers carrying on life insurance business

c.

To solely focus on promoting the growth of the life insurance industry

d.

To control and restrict life insurance business in India

Discuss
Answer: (b).To aid, advise, and assist insurers carrying on life insurance business Explanation:The objectives of the Executive Committee of the Life Insurance Council include aiding, advising, and assisting insurers carrying on life insurance business.
Q103.
What is the main function of the Insurance Association of India?

a.

To sell insurance policies to the public

b.

To provide financial support to insurers

c.

To establish standards of conduct in the insurance industry

d.

To control and restrict the activities of insurers

Discuss
Answer: (c).To establish standards of conduct in the insurance industry Explanation:The Insurance Association of India consists of members and associate members, and its main function is to set up standards of conduct and sound practice in the insurance industry.
Q104.
How long is the duration of the Executive Committee of the General Insurance Council?

a.

Two years

b.

Three years

c.

Five years

d.

Indefinite duration

Discuss
Answer: (b).Three years Explanation:The duration of the Executive Committee of the General Insurance Council is three years from the date of its first meeting.
Q105.
What is the significance of the No Fault Liability concept?

a.

It eliminates the need for insurance coverage

b.

It restricts the compensation payable to victims

c.

It absolves the insured from proving fault in accidents

d.

It increases the burden of proof on the victim

Discuss
Answer: (c).It absolves the insured from proving fault in accidents Explanation:The concept of No Fault Liability means that the claimants are not required to plead and establish fault on the part of the owner or user of the motor vehicles to receive compensation.
Q106.
Which of the following institution’s mission is to protect the interests of holders of insurance policies?

a.

Securities and Exchange Board of India (SEBI)

b.

Insurance Regulatory and Development Authority ( IRDA )

c.

Reserve Bank of India (RBI)

d.

Association of Mutual Funds of India (AMFI)

Discuss
Answer: (b).Insurance Regulatory and Development Authority ( IRDA ) Explanation:The IRDA is established with the objective of protecting the interests of holders of insurance policies. SEBI is India’s stock market regulator. RBI is the central bank of India. AMFI is an apex body of all Asset Management Companies (AMC).
Q107.
The Insurance Association of India consists of _______

i. Members: All insurers that are incorporated or domiciled in India.
ii. Members: All insurers incorporated and domiciled outside India
iii. Associate members: all insurers incorporated and domiciled outside India
iv. Associate members: insurers that are incorporated or domiciled in India
Which of the following options is correct?

a.

Only i. and iii.

b.

Only i. and iv

c.

Only ii and iii

d.

Only ii and iv

Discuss
Answer: (a).Only i. and iii. Explanation:According to Section 64A of the Insurance Act 1938, the Insurance Association of India consists of: 1. Members: All the insurers that are incorporated or domiciled in India. 2. Associate members: All the insurers incorporated and domiciled outside India.
Q108.
Which of the following is not an objective of IRDA?

a.

To protect the interest of and secure fair treatment to policyholders.

b.

To consolidate the various laws existing at that time and amend the law relating to the business of insurance.

c.

To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard.

d.

To ensure speedy settlement of genuine claims, to prevent insurance fraud and other malpractices and put in place effective grievance redressal machinery.

Discuss
Answer: (b).To consolidate the various laws existing at that time and amend the law relating to the business of insurance. Explanation:The Preamble to the Insurance Act, 1938 mentions that the aim of the Act is to consolidate (the various laws existing at that time) and amend the law relating to the business of insurance.
Q109.
Which of the following is a duty of the IRDA?

i. Protection of the interests of the policyholders in matters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance.
ii. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents.
iii. Specifying the code of conduct for surveyors and loss assessors.

a.

Only i. and ii.

b.

Only ii. and iii.

c.

All of the above

d.

None of the above.

Discuss
Answer: (c).All of the above Explanation:All are the duties of IRDA according to Section 14 of the IRDA Act.
Q110.
Which of the following is not among the Insurance Councils mentioned in Section 64C of the Insurance Act, 1938?

i. The Life Insurance Council of India
ii. The Health Insurance Council of India
iii. The General Insurance Council of India

a.

Only i and iii

b.

Only ii

c.

All of the above

d.

None of the above

Discuss
Answer: (b).Only ii Explanation:Section 64C of the Insurance Act, 1938 provides for two Insurance Councils in India. They are: 1. The Life Insurance Council: it consists of all the members and associate members of the Association who carry on life insurance business in India. 2. The General Insurance Council: it consists of all the members and associate members of the Association who carry on general insurance business in India.
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