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 2 of 12

Discover more Topics under IC 14 Regulations of Insurance Business

Q11.
What are the main objectives of the IRDA?

a.

Maximizing profits of insurance companies

b.

Protecting the interest of the insured and promoting orderly growth of the insurance industry

c.

Establishing a monopoly in the insurance sector

d.

Minimizing policyholders' interests

Discuss
Answer: (b).Protecting the interest of the insured and promoting orderly growth of the insurance industry Explanation:The main objectives of IRDA are protecting the interest of the insured (policyholders) and promoting orderly growth of the insurance industry.
Q12.
How is a regulator defined?

a.

A person appointed by insurance companies

b.

An entity responsible for control and supervision of a particular activity

c.

An insurance policyholder

d.

A government official overseeing insurance policies

Discuss
Answer: (b).An entity responsible for control and supervision of a particular activity Explanation:A regulator is defined as an authority responsible for control and supervision of a particular activity.
Q13.
What is the composition of the Insurance Regulatory and Development Authority (IRDA)?

a.

Only a Chairperson

b.

A Chairperson, five whole-time members, and four part-time members

c.

A Chairperson and an unlimited number of members

d.

A Chairperson and two whole-time members

Discuss
Answer: (b).A Chairperson, five whole-time members, and four part-time members Explanation:The composition of IRDA includes a Chairperson, not more than five whole-time members, and not more than four part-time members.
Q14.
How are the members of the IRDA appointed?

a.

By the insurance companies

b.

By the policyholders

c.

By the State Governments

d.

By the Central Government based on knowledge or experience in relevant disciplines

Discuss
Answer: (d).By the Central Government based on knowledge or experience in relevant disciplines Explanation:Members of the IRDA are appointed by the Central Government based on knowledge or experience in relevant disciplines.
Q15.
What are the full-time members of the IRDA?

a.

Member, Claims and Disputes

b.

Member, Risk Assessment

c.

Member, Non-life; Member, Life; Member, Actuary; Member, Finance & Investments

d.

Member, Marketing and Sales

Discuss
Answer: (c).Member, Non-life; Member, Life; Member, Actuary; Member, Finance & Investments Explanation:The full-time members of IRDA are Member, Non-life; Member, Life; Member, Actuary; Member, Finance & Investments.
Q16.
Where is IRDA situated, and what is its website address?

a.

Situated in Mumbai, website address: www.irda.in

b.

Situated in Hyderabad, website address: www.irda.gov.in

c.

Situated in Delhi, website address: www.insuranceauthority.in

d.

Situated in Chennai, website address: www.insureindia.com

Discuss
Answer: (b).Situated in Hyderabad, website address: www.irda.gov.in Explanation:IRDA is situated in Hyderabad, and its website address is www.irda.gov.in.
Q17.
What is one of the purposes of forming the IRDA,?

a.

Maximizing profits for insurance companies

b.

Protecting the interest of policyholders and ensuring their fair treatment

c.

Establishing a monopoly in the insurance sector

d.

Minimizing regulations for the insurance industry

Discuss
Answer: (b).Protecting the interest of policyholders and ensuring their fair treatment Explanation:One of the purposes of forming IRDA is to protect the interest of policyholders and ensure their fair treatment.
Q18.
What is the objective of ensuring speedy settlement of genuine claims?

a.

Maximizing profits for insurance companies

b.

Preventing insurance frauds and malpractices

c.

Delaying claim settlements to save costs

d.

Promoting self-regulation in the insurance industry

Discuss
Answer: (b).Preventing insurance frauds and malpractices Explanation:The objective of ensuring speedy settlement of genuine claims is to prevent insurance frauds and malpractices.
Q19.
What powers and functions does Section 14 of the IRDA Act, 1999 specify for IRDA?

a.

Issuing certificates of appreciation

b.

Regulating and promoting orderly growth of the insurance business

c.

Conducting financial audits of insurance companies

d.

Providing tax exemptions to insurance intermediaries

Discuss
Answer: (b).Regulating and promoting orderly growth of the insurance business Explanation:Section 14 of the IRDA Act specifies duties, powers, and functions of IRDA, including regulating and promoting orderly growth of the insurance business.
Q20.
What does IRDA have the duty to regulate, promote, and ensure, according to Section 14 of the IRDA Act, 1999?

a.

The growth of the economy

b.

Orderly conduct in financial markets

c.

Insurance business and re-insurance business

d.

The profitability of insurance companies

Discuss
Answer: (c).Insurance business and re-insurance business Explanation:According to Section 14 of the IRDA Act, IRDA has the duty to regulate, promote, and ensure orderly growth of the insurance business and re-insurance business.
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