Insurance

Insurance MCQs with Answers and Explanations | Life, Health & General Insurance Objective Questions

Enhance your understanding of Insurance and Risk Management with our comprehensive collection of MCQs with answers and detailed explanations. Topics include principles of insurance, life insurance, health insurance, fire insurance, marine insurance, reinsurance, risk management, premium calculation, claims settlement, insurance laws, and regulatory framework. These objective questions are ideal for students, teachers, and candidates preparing for competitive and professional exams (CA, ACCA, ICMA, MBA, BBA, CSS, PMS, NTS, FPSC, PPSC, UPSC, insurance licensing exams, etc.). Each MCQ is followed by a clear explanation to strengthen concepts, improve problem-solving skills, and boost exam performance. Perfect for practice, revision, and self-assessment in the field of Insurance.

12. Which is not the product of general insurance?

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A) Motor insurance
B) Personal accident insurance
C) Medical and health insurance
D) Life insurance
✅ ANSWER: D
Life insurance is not the product of general insurance. General Insurance is a contract of indemnity which promises to make good your losses. In Life Insurance, the sum assured along with benefits is paid either on the event of death of the policy holder or on maturity of the policy.

13. _________ as a profession refers to the act of inducing a commercial transaction through inducing the purchase of a product or service. Such act is carried out with the intent of earning remuneration.

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A) Marketing
B) Selling
C) Advertising
D) Promotion
✅ ANSWER: B
Selling as a profession refers to the act of inducing a commercial transaction through inducing the purchase of a product or service. Such act is carried out with the intent of earning remuneration.

17. Who markets personal pension products?

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A) Employers
B) IRDA
C) General Insurers
D) Life Insurers
✅ ANSWER: D
Life Insurers markets personal pension products. Personal pensions (also known as “private pensions”) are long-term savings products that individuals contribute to on a voluntary basis, complementing state and workplace pensions. They have a role to play in linking long-term savers with long-term investment opportunities.

19. Which is not an example of social security schemes of the Government?

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A) Rajeev Gandhi Equity Scheme
B) Janata Personal Accident
C) Jan Arogya Scheme
D) Employees State Insurance Corporation
✅ ANSWER: A
Rajeev Gandhi Equity Scheme is not an example of social security schemes of the Government. The scheme is aimed at encouraging the flow of savings of small investors in the domestic capital market, and presents investors with tax benefits provisioned as a new section, 80CCG, in the Income Tax act.

20. Who is an inpatient seeking medical attention for his medical problem?

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A) He is a patient who receives medical attention without admission in a hospital
B) He is after admission in a hospital receiving medical attention and treatment while being there
C) He is a day care patient for treatment
D) He is a patient in a house receiving care of doctors
✅ ANSWER: B
An inpatient seeking medical attention for his medical problem after admission in a hospital receiving medical attention and treatment while being there.