Insurance Awareness Quiz – Set 38

Insurance Awareness Quiz: We have created quiz questions on Insurance Awareness which are most important for insurance exams. These questions and answers will guide you in all insurance exams like LIC (AAO/ADO), NIACL assistant and AO, UIIC, IRDA and other Bank PO exams and all competitive exams. So attempt these multiple choice questions now based on the exam pattern syllabus.

  1. There are two types of risk burdens namely primary and secondary which an individual/entity suffers. Which among the following represents the secondary burden of risk?
    A) Maintaining reserves as a provision for meeting potential losses in the future
    B) Goods damaged cost due to fire
    C) Loss in Business cost
    D) Medical cost due to heart attack
    View answer
    Option A
    Explanation:
    The secondary burden of risk involves costs and strains that one has to bear due to the fact that one is exposed to a loss situation. Even if the said event does not occur, these burdens have still to be borne.
  2. ______ is the measures to reduce chances of occurrence of risk
    A) Risk retention
    B) Risk transfer
    C) Risk control
    D) Risk avoidance
    View answer
    Option C
    Explanation:
    Risk control is the method by which firms evaluate potential losses and take action to reduce or eliminate such threats.
  3. Risk retention in insurance indicates a situation where ___________
    A) Insurance company takes the responsibility of the risk associated with property insured
    B) An entity decides to take responsibility for a particular risk instead of transferring the risk to an insurance company
    C) There is no possibility of occurrence of loss or damage
    D) Multiple insurance companies come together to share the risk associated with property insured
    View answer
    Option B
  4. Which among the following statements best defines an insurance?
    A) Insurance protects the asset insured
    B) Insurance reduces possibilities of loss
    C) Insurance pays for loss of asset
    D) Insurance eliminates loss occurrence
    View answer
    Option C
  5. Which among the given insurance is compulsory in India?
    A) Travel Insurance
    B) Fire Insurance
    C) Property Insurance
    D) Motor Third Party Insurance
    View answer
    Option D
  6. IRDA monitors the policyholder’s complaints and their progress in real-time through IGMS. Expand it.
    A) Integrated Grievance Management System
    B) Informed Grievance Management System
    C) Interfaced Grievance Management System
    D) Insurance Grievance Management System
    View answer
    Option A
    Explanation:
    The Integrated Grievance Management System (IGMS) is an online consumer complaints registration system created by IRDA
  7. Which among the following consumer disputes redressal agency entertains the complaints, where value of the goods or services and the compensation claimed does not exceed Rs.20 lakhs.
    A) National Commission
    B) State Commission
    C) District Forum
    D) Civil Court
    View answer
    Option C
  8. The __________ entertain complaints where the value of goods/service and compensation, if any claimed exceeds Rs. 20 lakhs but does not exceed Rs. 100 lakhs.
    A) State Commission
    B) District Forum
    C) National Commission
    D) Civil Court
    View answer
    Option A
  9. The National Commission entertain complaints where the value of goods/service and compensation, if any claimed exceeds Rs ___________
    A) Rs 5 crore
    B) Rs 1 crore
    C) Rs 2 crore
    D) Rs 3 crore
    View answer
    Option B
  10. What is the time limit set for the complainant to approach an Insurance Ombudsman over the rejection of the complaint by the insurer?
    A) 3 months
    B) 6 months
    C) 1 year
    D) 1 month
    View answer
    Option D

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