Insurance Awareness Quiz – Set 58

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. Which among these is not a type of General Insurance plans?
   I. Motor Insurance
   II. Marine Insurance
   III. Health Insurance
   IV. Commercial Insurance
   A) II & IV
   B) Only IV
   C) All are General insurance plans
   D) Only II
   
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   Option C
   Explanation: Motor, Marine, Home, Health, Travel and Commercial are some of the different forms of general insurance plans
2. The premium of insurance of your two-wheeler depends on its IDV. What does IDV denotes?
   A) Insured Demand Value
   B) Insured Declared Value
   C) Insured Depreciated Value
   D) Insured Devised Value
   
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   Option B
   Explanation: The premium of insurance of your two-wheeler depends on its Insured Declared Value (IDV). The IDV depends on the ex-showroom price of your vehicle, its depreciation, its cubic capacity (in case of third-party insurance), and zone of the registration.
3. Who determines the third-party insurance premium of the two-wheelers?
   A) IRDAI
   B) Insurance Company
   C) Policy Holder
   D) Vehicle Company
   
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   Option A
   Explanation: It is the IRDAI that decides the third-party insurance premium of the two-wheelers.
4. Which among these factors are considered by the insurance companies to calculate the premium of car insurance policies?
   A) IDV
   B) Geographical location
   C) Year of manufacturing
   D) All of the above
   
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   Option D
   Explanation: Most of the insurance companies like National General Insurance use the following factors to calculate the premium: IDV, Year of manufacturing, Cubic capacity, Geographical location, No Claim Bonus (NCB)
5. The insurance company gives the __________ to the policyholders for not making any claim in the previous year.
   A) Cashless Claims Bonus
   B) Cost of Medical Underwriting
   C) Mortality amount
   D) No Claim Bonus
   
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   Option D
   Explanation: The ‘No Claim Bonus’ is also referred to as NCB. The insurance company gives the NCB to the policyholders for not making any claim in the previous year. This is a kind of reward that is given as a discount over the payable premiums and ranges from 20% to 50%.
6. The ____________is the value of sum assured provided by the vehicle insurance policy.
   A) Zero Dep value
   B) Insured Declared Value
   C) Reimbursement Claim
   D) No Claim Bonus
   
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   Option B
   Explanation: The Insured Declared Value (IDV) is the value of sum assured provided by the vehicle insurance policy.
7. The ‘Zero Dep’ insurance policies is related with
   A) Overseas Insurance
   B) Health Insurance
   C) Car Insurance
   D) Glass Insurance
   
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   Option C
   Explanation: The vehicle owners these days prefer the ‘Zero Dep’ insurance policies in India. As per ‘zero dep’ policy, the policyholder gets the complete claim without any deductions for the depreciation of replaced parts of the vehicle.
8. __________ is an insurance policy where the employer is the proposer and pays the premiums for the life insured of the employer’s key employee.
   A) Personal insurance
   B) Commercial insurance
   C) Fidelity insurance
   D) Keyman insurance
   
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   Option D
   Explanation: Keyman insurance is an insurance policy where the employer is the proposer and pays the premiums for the life insured of the employer’s key employee.
   
9. A policy to protect business from financial losses in the event of a breach of trust by an employee is known as___________
   A) Fidelity Insurance
   B) Live Stock Insurance
   C) Overseas Insurance
   D) Key Man Insurance
   
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   Option A
   Explanation: Fidelity Insurance is a policy to protect business from financial losses in the event of a breach of trust by an employee
10. _________ is a type of life insurance policy, which provides the combined benefit of insurance coverage and savings.
    A) Investment linked plan
    B) Endowment plan
    C) Whole Life plan
    D) Term plan
    
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    Option B
    Explanation: Endowment plan is a life insurance policy which provides you with a combination of both i.e.: an insurance cover, as well as an savings plan. It helps you in saving regularly over a specific period of time, so that you are able to get a lump sum amount on policy maturity, if the policyholder survives the policy term.

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