SGVU – BCOM 5TH SEM -IMP QUESTION

INSURANCE

S.NO. QUESTION – ANSWER
1 A claim is rejected in marine insurance if – The loss occurred due to a breach of warranty
2 A life insurance agent must comply with the following while selling a policy – Disclose all policy details and limitations
3 GIC became a reinsurance company in which year? – 2000
4 The policy that pays a sum of money to the insured if they survive a certain period is called – Endowment Policy
5 Which term refers to the voluntary sacrifice of part of a ship or cargo to save the rest? – General Average
6 The primary purpose of underwriting is to – Determine the premium amount
7 Which type of insurance contract pays out a lump sum in the event of death or after a certain period? – Life insurance
8 Which of the following is NOT covered under marine insurance? – Natural wear and tear of the ship
9 Which life insurance policy provides lifelong coverage and pays a death benefit upon the policyholders death? – Whole Life Policy
10 Which principle ensures the insured is restored to the same financial position before the loss? – Principle of Indemnity
11 Which type of marine insurance policy is best suited for regular shippers? – Floating policy
12 Under the principle of Contribution if two insurers cover the same loss the – Insurers share the loss proportionately
13 What is the primary role of the General Insurance Corporation of India? – To serve as a reinsurer for general insurance companies
14 Life insurance is primarily concerned with – Covering risks associated with life and death
15 What does reinsurance mean in the context of GIC? – Insuring the risks of insurance companies
16 What does the principle of Insurable Interest mean? – The insured must be directly affected by the loss or damage
17 Group insurance contracts are typically used to cover – Multiple individuals under a single policy
18 Which type of loss refers to the complete loss of a ship or cargo in marine insurance? – Total Loss
19 Which type of life insurance policy pays out a lump sum on death or after a specific term? – Endowment Policy
20 GIC is primarily involved in – Reinsuring risks underwritten by general insurance companies
21 Health insurance typically covers – Medical expenses and treatment costs
22 Which of the following is an example of general insurance? – Health insurance
23 Which of the following factors is typically considered in life insurance underwriting? – All of the above
24 General insurance policies are typically valid for – One year renewable annually
25 Which type of insurance contract is generally for a short-term period – Marine insurance
26 Which type of insurance contract provides benefits upon death or maturity? – Life insurance Marine insurance
27 Which of the following is NOT a benefit of life insurance? – Covers legal liabilities
28 Which type of life insurance policy provides coverage for a specific period and no maturity benefits? – Term Life Policy
29 Underwriting in life insurance refers to – Assessing the risk of insuring a person
30 When was the General Insurance Corporation of India (GIC) established? – 1972
31 Which clause in marine insurance ensures that the insurer pays the cost of recovery of the cargo in case of total loss? – Sue and Labour clause
32 What is the term used for the amount of risk or liability covered by general insurance? – Coverage limit
33 Which government body regulates GIC? – IRDAI
34 The insurers right to recover the amount paid from the third party responsible for the loss is called – Subrogation
35 Which of the following is a feature of marine insurance? – Covers both goods and liabilities
36 Life insurance is an example of which type of contract? – Non-indemnity contract
37 The principle of Proximate Cause refers to – The closest cause of the damage or loss
38 Which of the following is NOT a principle of insurance contracts? – Profitability
39 Annuities are generally designed to – Provide a steady income stream during retirement
40 Life Insurance Corporation of India (LIC) was established in – 1956
41 The first life insurance company in India was – Oriental Life Insurance Company
42 Which type of general insurance provides coverage for losses due to theft accidents or natural calamities? – Fire insurance
43 Which type of insurance contract primarily deals with liability risks? – Liability insurance
44 Which of the following is a challenge faced by life insurance agents during selling? – All of the above
45 Which of the following life insurance products combines life insurance with investment opportunities? – Unit Linked Insurance Plan (ULIP)
46 Fire insurance falls under which category of insurance contracts? – Indemnity contract
47 In which of the following contracts is the principle of indemnity NOT applied? – Life insurance
48 Which type of general insurance covers loss or damage to ships and cargo? – Marine insurance
49 A policy that covers a specific voyage only is called a – Voyage policy

Q. DISCUSS THE DIFFERENT TYPES OF INSURANCE CONTRACTS.

Ans.

Insurance contracts are agreements between an insurer (the insurance company) and the insured (the policyholder), where the insurer agrees to compensate the insured for specific losses, damages, or liabilities in exchange for premiums paid by the insured. Various types of insurance contracts exist to cater to different types of risks and needs.

Different types of insurance contracts: 

• Whole life insurance-A flexible life insurance package that allows you to choose the sum assured and policy tenure. 
• Term life insurance-A simple type of life insurance that pays out if the policyholder dies during the term of the policy, which is usually between one and 30 years. 
• Home insurance-Covers damage to your home from natural disasters, man-made disasters, and other threats. 
• Endowment policy-A life insurance policy that pays a lump sum amount on maturity or death. 
• Money-back policy-A life insurance policy that pays back a percentage of the sum assured at regular intervals during the policy tenure. 
• Unit-linked insurance plan-A life insurance product that offers both investment and life insurance benefits. 
• Auto insurance-A contract that protects you from financial loss in the case of a vehicle accident, theft, or damage. 
• Marine insurance-Typically divided into two types: facultative and open cover. 
• Child plan-A life insurance policy that offers a lump-sum payment on the death of the policyholder. 

Q. EXPLAIN THE ROLE AND SIGNIFICANCE OF THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (IRDAI) IN REGULATING HE INSURANCE SECTOR IN INDIA.

Ans.

The Insurance Regulatory and Development Authority of India (IRDA) is a statutory body that regulates the insurance industry in India. The IRDA’s role includes: 

• Protecting policyholders: The IRDA protects the interests of policyholders. 
• Regulating insurance companies: The IRDA registers and regulates insurance companies. 
• Licensing intermediaries: The IRDA licenses and sets norms for insurance intermediaries. 
• Regulating premium rates: The IRDA regulates and oversees premium rates and terms for non-life insurance. 
• Ensuring solvency: The IRDA ensures that insurance companies maintain their solvency margin. 
• Promoting insurance: The IRDA promotes insurance and professional organizations in the insurance sector. 
• Ensuring insurance coverage: The IRDA ensures that insurance coverage is available in rural areas and for vulnerable sections of society. 
• Promoting competition: The IRDA promotes competition to increase consumer choice and lower premiums. 
• Ensuring financial security: The IRDA ensures the financial security of the insurance market. 
• Issuing notices: The IRDA issues notices to insurance companies when there are changes in rules and regulations. 
• Leading efficiency: The IRDA leads insurance companies to be more efficient and control insurance-related charges. 

Q. DESCRIBE THE MAIN OBJECTIVES AND PROVISIONS OF THE INSURANCE ACT 1938.

Ans.

The Insurance Act of 1938 regulates the insurance industry in India and has several objectives and provisions, including: 

• Establishing the Insurance Regulatory and Development Authority (IRDA): The IRDA is the primary regulatory body for the insurance sector. 
• Policyholder protection: The act includes provisions for policyholder protection, such as creating separate funds for policyholders’ benefits and ensuring timely claims settlement. 
• Registration requirements: The act outlines the requirements for obtaining a certificate of registration for insurance companies. 
• Investment requirements: The act includes provisions for investments, such as the compulsory investment of life funds in government approved securities. 
• Solvency margins: The act specifies provisions related to solvency margins. 
• Professionalism: The act includes provisions to promote professionalism in the insurance business, such as prohibiting rebating and restricting the payment of commission. 
• Financial viability: The act includes provisions to assess the financial viability of insurance companies, such as periodical valuation. 
• Policy formats: The act includes provisions for standardizing policy formats. 
• Premium tables: The act includes provisions for certifying premium tables by an actuary. 

INDUSTRIAL LAW – BCOM -5TH

QUESTION – ANSWER
What is job security in the context of industrial law? – Protection against unjust dismissal or layoff
What does the term compensation generally refer to in industrial law? – Payment for lost wages or benefits
The Employee Retirement Income Security Act (ERISA) primarily deals with: – Employee pensions and benefits
Which body usually resolves industrial disputes in many jurisdictions? – The Industrial Tribunal or Labour Court
Under which act are workers generally entitled to unpaid family leave? – The Family and Medical Leave Act
In which scenario would the Industrial Disputes Act typically be invoked? – During a trade union strike
Which deductions are permissible under The Payment of Wages Act 1936 – All of the above
Which law is designed to ensure equal pay for equal work? – The Equal Pay Act
Which body usually resolves industrial disputes in many jurisdictions? – The Industrial Tribunal or Labour Court
The Minimum Wages Act 1948 applies to – All industries and establishments
What is trade union recognition? – Official acknowledgment of a trade union’s role in representing workers
As per The Minimum Wages Act 1948 how often should the wages be reviewed and revised – Once every five years
Which law protects employees from discrimination based on race, colour, religion, sex, national origin in the workplace? – The Civil Rights Act of 1964
Which act governs the protection of employee rights during layoffs or terminations? – The Worker Adjustment and Retraining Notification (WARN) Act
As per The Payment of Wages Act 1936 how often should wages be paid to the employee – Monthly
What is the purpose of a labour market survey? – To assess the availability and condition of labour in a given area
What is the primary function of a trade union? – To negotiate on behalf of workers for better terms and conditions
Which concept refers to the unfair treatment of employees based on their union membership? – Discrimination
Which law requires employers to provide a safe working environment? – The Occupational Safety and Health Act
Which act regulates the employment of children and young persons? – The Child Labor Act
The Employee Retirement Income Security Act (ERISA) primarily deals with: – Employee pensions and benefits
Which act regulates the minimum wages for workers in many countries? – The Minimum Wage Act
Which factors are considered while fixing or revising the minimum rates of wages under the Act? – The cost of living and the skill required
Which act provides for workers compensation in many jurisdictions? – The Workers’ Compensation Act
What does industrial action typically refer to? – Actions taken by employees such as strikes or work-to-rule, to protest conditions
What is an employment contract? – A formal agreement detailing the terms of employment between an employer and employee
What is a collective bargaining agreement? – A negotiation between employees and employers on working conditions
What does workplace harassment include? – Discriminatory behavior or unwanted advances in the workplace
In which scenario would the Industrial Disputes Act typically be invoked? – During a trade union strike
Which of the following is a fundamental right under most labour laws? – Right to a minimum wage
What is the maximum amount of deduction for fines that can be imposed under The Payment of Wages Act, 1936? – 10% of the wages
Which organization often represents employers in disputes with employees? – The Chamber of Commerce
What is the purpose of a grievance procedure? – To address employee complaints and disputes
Which law protects employees from discrimination based on race, colour, religion, sex, or national origin in the workplace? – The Civil Rights Act of 1964
Which concept involves reducing staff numbers due to financial difficulties? – Downsizing
What is the primary objective of The Minimum Wages Act 1948 – Fixing minimum rates of wages for different categories of employment
What is the primary purpose of industrial law? – To protect the rights of employees and employers
Which act regulates working time and rest periods for employees? – The Working Time Regulations
What is the main function of a labour union steward? – To represent and support union members in workplace issues
Which body typically monitors compliance with labor laws in a country? – The Labor Department or Ministry of Labor
Which act regulates the minimum wages for workers in many countries? – The Minimum Wage Act
What does OSHA stand for? – Occupational Safety and Health Administration
Under The Minimum Wages Act 1948 who has the authority to fix and revise the wage rates – State Governments
What is a collective bargaining agreement? – A negotiation between employees and employers on working conditions
What is unfair dismissal? – Termination of employment without just cause or due process
Which act provides regulations regarding workers health and safety? – The Health and Safety at Work Act
What is the primary focus of the Family and Medical Leave Act (FMLA)? – Providing job-protected leave for medical and family reasons
What is the primary purpose of industrial law? – To protect the rights of employees and employers
What does dispute resolution in industrial law refer to? – The process of settling disagreements between employers and employees