IMPORTANT QUESTIONS –  IC 34 (General Insurance)

  1. The paid up capital of an Insurance Company should not be less than ?

Rs. 100 CRORES

  1. IRDAI has registered how many insurance companies so far?

29 General Insurance Companies and 24 Life Insurance companies.


  1. Which is the first Document to be filled by the Insured while taking a Policy?

Proposal Form

  1. As per guidelines, an Insurance company has to process an Insurance proposal within how many days?

15 days.

  1. The maximum liability of an Insurer is?

Sum insured

  1. Cover notes are issued mostly for

Motor & Marine branches

  1. Validity of a Cover note is

60 days

  1. Evidence of a contract is

Policy Document

  1. Any change/alteration made in the policy comes in the form of


  1. Has IRDAI made it compulsory to issue Renewal notice to the insured.

No. Renewal Notices are issued as a matter of courtesy

  1. Intimation of a claim has to be made to the insurer


  1. The Principle of under insurance would apply if

One does not insure the property for its full value

  1. Claim Settlement is done through

Cash payment, Repair of a damaged item, Replacement of the lost or damaged item and Reinstatement

  1. The Policy where the Sum Insured is decided between the Insurer & Insured is known as

Agreed Valued /Valued Policy

  1. Subrogation means

Transferring of Rights & remedies of the insured to insurer to go against the third Party

  1. Contribution means

If same risk is insured with multiple insurers, all insurers will pay their ratable proportion at the time of a claim

  1. The Latin terms Uberrima Fides means

Utmost Good Faith

  1. Utmost Good Faith means

The proposer has the legal duty to disclose all material information about subject matter of insurance to insurers who do not have any information

  1. Material information means

That information which enables the insurer to decide whether they will accept the risk or no & if so, on what terms & conditions

  1. Duty of disclosure in non-life arises at

All stages – while taking a policy, during the currency of the policy and at the time of a claim

  1. If material facts are misrepresented the Policy becomes


  1. The interest that  the insured has in his house or his money is termed as

Insurable interest

  1. Proximate cause means

The cause having the most significant impact in bringing about the loss.

  1. Risk means

Cause of loss

  1. Pure Risk means

Situation where there is a chance of either loss or no loss 

  1. Speculative Risk means

Either there will be a loss or there will be a gain

  1. Insurance is concerned only with

Pure Risks

  1. Peril means

Cause of loss

  1. If the insured has installed Fire extinguishers, he will get a __________ from the insurer.


  1. No Claim made in the previous year is a discount for ?

Safe driving

  1. Deductible is known as

Excess amount applied by the Insurer to be borne by the Insured.

  1. Broad Classification of Non-life insurance is

Fire, Marine & Miscellaneous

  1. Miscellaneous branch consists of

Motor, Health, Personal accident, Liability, Engineering, Rural, Burglary etc.

  1. Obligation laid down by IRDAI for non-life Insurers for Rural Sector is

2% in the first year for new insurers, 3% in the second year and 5% in the coming years

  1. The Prime purpose of Insurance Regulations is

Protect the interest of Policyholders

  1. Subrogation & Contribution do not apply to

Personal Accident policies.

  1. Personal Accident policy covers

Death, Permanent Total Disability (PTD), Permanent Partial Disability (PPD) and Total Temporary Disability (TTD)

  1. The add-on cover means

Extra benefit provided by the insurer on payment of additional premium

  1. Special features of P.A. are

It is valid worldwide and one can travel in a standard aircraft

  1. Weekly compensation means

Payment of a fixed sum per week to a maximum number of weeks for which the compensation would be payable

  1. P.A. policy attracts a cumulative bonus of

5% of increase in sum insured of every claim-free period

  1. Medical check-ups are not required

For fresh as well as renewable P.A. policies

  1. “On Duty” Cover under P.A. the premium chargeable is

75% of nominal premium

  1. “Off Duty” Cover premium chargeable is

50% of nominal premium.

  1. Health policies can be issued from age

3 months to 80 years

  1. Role of a TPA is only to

Process the papers when a claim arises

  1. The TPA’s duty does not involve

Collection of Premium

  1. For a claim under a Health Policy

24 hours hospitalization is required.

  1. Are artificial limbs covered under a health policy?

Yes, they are covered automatically.

  1. There is a waiting Period of how many years in a fresh Policy for certain diseases (cataract etc.).

2 years

  1. Portability means

The insured can transfer his Policy to a new insurer and the 2 years exemption with the previous insurer will continue, meaning that his policy will already be in the third year with the new insurer.

  1. The insured is entitled for a free health check- up

Once in every four claim free years

  1. The grace period for renewal for a health insurance policy is

30 days

  1. Cumulative Bonus means

5% increase on sum insured till he reaches 50% of the original sum insured

  1. The Act for Motor Insurance is

Motor Vehicles Act 1988

  1. MV Act 1988 covers

Third party bodily injury/Death, grievous injury & third party Property damage

  1. As per MV Act, third party property damage is covered upto

Rs. 6000

  1. Third Party Motor claims are settled by

Motor Accident Claims Tribunal (MACT)

  1. Rates for Motor Act premium are fixed by


  1. Package Policy covers

Own Damage and Third Party

  1. The discount for Automobile Association is

2 % or max. Rs. 200, whichever is less.

  1. Charges for CNG & Stereo etc. other than included in invoice is


  1. The insured is required to pay

Rs. 60 in third party insurance for CNG.

  1. Owner-cum- Driver P.A. for  Private as well as Commercial vehicles is

Rs. 2 lac for 4 wheelers & Rs. 1 lac for two wheelers

  1. NCB Slab is

20%, 25%, 35%, 45% & 50%

  1. Towing charges are between

Rs.300 to 1500

  1. Depreciation for Rubber, fiber & glass parts is

50%, 30% & nil respectively

  1. Rating factor in Motor depends on

Zone, Age, C.C. ,  IDV of the Vehicle

  1. Hazard means

A physical or moral feature that increases the risk

  1. The procedures like Dialysis, chemotherapy etc. which require less than 24 hours hospitalization will come under

Day care treatment

  1. A surveyor is appointed when the claim amount is Rs. _________or more.

Rs, 20,000

  1. Ombudsman powers are restricted to contracts of value not exceeding ?

20 lacs

  1. Ombudsman has to give his award within how many days?

3 months

  1. A customer having complaint can approach IRDAI through

Integrated Grievance Management System (IGMS)

  1. The jurisdiction of the District Forum is to entertain matters upto what amount?

20 lacs