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 3 of 12

Discover more Topics under IC 14 Regulations of Insurance Business

Q21.
What benefits does the Employees’ State Insurance Act, 1948, provide to employees?

a.

Compensation for loss of property

b.

Benefits in cases of sickness, maternity, and employment injury

c.

Pension for retired employees

d.

Housing facilities for employees

Discuss
Answer: (b).Benefits in cases of sickness, maternity, and employment injury Explanation:The Employees’ State Insurance Act, 1948, provides benefits to employees in cases of sickness, maternity, and employment injury.
Q22.
What is the purpose of the Employees’ State Insurance Corporation under the Employees’ State Insurance Act, 1948?

a.

To administer the pension scheme

b.

To regulate industrial areas

c.

To maintain a fund for employee benefits

d.

To provide medical treatment to employers

Discuss
Answer: (c).To maintain a fund for employee benefits Explanation:The Employees’ State Insurance Corporation under the Employees’ State Insurance Act, 1948, is set up to administer the Insurance Scheme and maintain a fund consisting of contributions from employees, employers, and the Government.
Q23.
What is the main focus of the Employees’ State Insurance Act, 1948?

a.

Providing benefits to employers

b.

Expanding industrial areas

c.

Ensuring employee welfare in cases of sickness, maternity, and employment injury

d.

Reducing the complexity of industry

Discuss
Answer: (c).Ensuring employee welfare in cases of sickness, maternity, and employment injury Explanation:The main focus of the Employees’ State Insurance Act, 1948, is to ensure employee welfare in cases of sickness, maternity, and employment injury.
Q24.
What expenses are covered by the fund maintained under the Employees’ State Insurance Act, 1948?

a.

Compensation for property loss

b.

Benefits for sickness, maternity, disablement, dependents, and medical treatment

c.

Pension for retired employees

d.

Industrial development projects

Discuss
Answer: (b).Benefits for sickness, maternity, disablement, dependents, and medical treatment Explanation:The fund under the Employees’ State Insurance Act, 1948, covers expenses such as sickness benefit, maternity benefit, disablement benefit, dependents' benefits (death), and medical treatment.
Q25.
What is the primary purpose of the Public Liability Insurance Act, 1991?

a.

To provide relief based on fault or negligence

b.

To establish hazardous substance handling guidelines

c.

To reimburse medical expenses for all accidents

d.

To provide immediate relief for accidents involving hazardous substances on principles of No Fault

Discuss
Answer: (d).To provide immediate relief for accidents involving hazardous substances on principles of No Fault Explanation:The primary purpose of the Public Liability Insurance Act, 1991, is to provide immediate relief for accidents involving hazardous substances on principles of No Fault.
Q26.
What financial relationship exists between the insured and the insurer in the context of insurance?

a.

Lender-borrower relationship

b.

Customer-service provider relationship

c.

Delicate financial relationship

d.

Collaborative partnership

Discuss
Answer: (c).Delicate financial relationship Explanation:There is a delicate financial relationship between the insured and the insurer in the context of insurance.
Q27.
What does an insurer agree to do in exchange for payments from the insured?

a.

Sell financial products

b.

Provide defined services

c.

Reimburse losses on covered events

d.

Invest in premium markets

Discuss
Answer: (c).Reimburse losses on covered events Explanation:An insurer agrees to reimburse losses of the insured on the occurrence of specific events covered in the insurance policy.
Q28.
What is premium in the context of insurance?

a.

Compensation paid by the insurer

b.

Consideration paid by the insured

c.

Financial loss of the insurer

d.

Defined amount of money provided by the insured

Discuss
Answer: (b).Consideration paid by the insured Explanation:Premium is the consideration paid by the insured to the insurer in the context of insurance.
Q29.
Who is an insured in the insurance context?

a.

A person selling insurance

b.

A company buying insurance policies

c.

A policyholder buying an insurance policy

d.

An insurer providing compensation

Discuss
Answer: (c).A policyholder buying an insurance policy Explanation:An insured (i.e., policyholder) is a person or entity buying the insurance policy.
Q30.
What is the purpose of the Insurance Regulatory and Development Authority (IRDA), as stated in the Preamble of the IRDA Act, 1999?

a.

To maximize profits of insurance companies

b.

To regulate and promote the orderly growth of the insurance industry

c.

To establish a monopoly in the insurance sector

d.

To minimize policyholders' interests

Discuss
Answer: (b).To regulate and promote the orderly growth of the insurance industry Explanation:The purpose of IRDA, as stated in the Preamble, is to regulate, promote, and ensure the orderly growth of the insurance industry.
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