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 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.
Q22.
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.
Q23.
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.
Q24.
What are some of the powers and functions of IRDA as specified in Section 14 of the IRDA Act, 1999?

a.

Issuing certificates of appreciation

b.

Promoting efficiency in the conduct of insurance business

c.

Levying taxes on insurance companies

d.

Specifying the code of conduct for surveyors and loss assessors

Discuss
Answer: (d).Specifying the code of conduct for surveyors and loss assessors Explanation:Some of the powers and functions of IRDA include specifying the code of conduct for surveyors and loss assessors.
Q25.
What is one of the duties of IRDA concerning the rates, advantages, terms, and conditions offered by insurers in respect of general insurance business?

a.

Fixing maximum profits for insurers

b.

Regulating the tariffs through the Tariff Advisory Committee

c.

Determining the minimum premiums for insurance policies

d.

Advising insurers on marketing strategies

Discuss
Answer: (b).Regulating the tariffs through the Tariff Advisory Committee Explanation:One of the duties of IRDA is the control and regulation of the rates, advantages, terms, and conditions in general insurance business through the Tariff Advisory Committee.
Q26.
What does the Solatium Fund consist of?

a.

Contributions only from the General Insurance Industry

b.

Contributions only from the Central Government

c.

Contributions only from the State Government

d.

Contributions from the General Insurance Industry, Central Government, and State Government as decided by the Central Government.

Discuss
Answer: (d).Contributions from the General Insurance Industry, Central Government, and State Government as decided by the Central Government. Explanation:The Solatium Fund consists of contributions from the General Insurance Industry, the Central Government, and the State Government, as decided by the Central Government.
Q27.
When was the concept of 'payment of Compensation on structured formula basis' introduced in the Motor Vehicles Act?

a.

14.11.1992

b.

14.11.1994

c.

14.11.1996

d.

14.11.1998

Discuss
Answer: (b).14.11.1994 Explanation:The concept of 'payment of Compensation on structured formula basis' was introduced in the Motor Vehicles Act on 14.11.1994.
Q28.
What does the new Section 163A of the Motor Vehicles Act provide for?

a.

Full and final settlement of compensation for victims of fatal injuries in motor vehicle accidents.

b.

Ongoing and variable compensation for victims of fatal injuries in motor vehicle accidents.

c.

Complicated and lengthy settlement process for victims of fatal injuries in motor vehicle accidents.

d.

No compensation for victims of fatal injuries in motor vehicle accidents.

Discuss
Answer: (a).Full and final settlement of compensation for victims of fatal injuries in motor vehicle accidents. Explanation:The new Section 163A of the Motor Vehicles Act provides for fixed compensation to be paid to victims of fatal injuries in motor vehicle accidents, based on their age and income, as a full and final settlement.
Q29.
What is the primary purpose of the Marine Insurance Act, 1963?

a.

To regulate maritime trade

b.

To define responsibilities, liabilities, rights, and immunities of a ship-owner in respect of loss or damage to cargo carried

c.

To govern the practices of ship-owners

d.

To establish guidelines for marine insurance companies

Discuss
Answer: (b).To define responsibilities, liabilities, rights, and immunities of a ship-owner in respect of loss or damage to cargo carried Explanation:The primary purpose of the Marine Insurance Act, 1963, is to define responsibilities, liabilities, rights, and immunities of a ship-owner in respect of loss or damage to cargo carried.
Q30.
In addition to the Marine Insurance Act, 1963, which law defines the responsibilities, liabilities, rights, and immunities of a ship-owner in respect of loss or damage to cargo carried?

a.

Marine Insurance Act, 1963

b.

The Carriage of Goods by Sea Act, 1925

c.

U.K Marine Insurance Act, 1906

d.

Motor Vehicles Act, 1988

Discuss
Answer: (b).The Carriage of Goods by Sea Act, 1925 Explanation:In addition to the Marine Insurance Act, 1963, The Carriage of Goods by Sea Act, 1925, defines the responsibilities, liabilities, rights, and immunities of a ship-owner in respect of loss or damage to cargo carried.
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