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.

61. What are the reason(s) for increase in health insurance in India?

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A) Health consciousness
B) Increased longevity
C) Increase in income
D) All of the above
✅ ANSWER: D
Health insurance provides people with a much needed financial backup at times of medical emergencies. Health risks and uncertainties are a part of life. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. Increased income, health consciousness, price liberalization and the introduction of private healthcare financing is bringing the change.

63. As per IRDA, which of the following non-traditional products are permitted to be sold?

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A) Variable insurance plans
B) Unit Linked insurance plans
C) Both A & B
D) None of the above
✅ ANSWER: C
As per IRDA, Variable insurance plans and Unit Linked insurance plans non-traditional products are permitted to be sold. Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy. Unit linked insurance plan(ULIP) is a market-linked product that aggregates the very best of investment and insurance. It is a plan which is linked to the capital market and offers flexibility to invest in equity or debt funds as per risk appetite.

66. What will happen if the insured person loses the original life insurance policy document?

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A) The insurance company will issue a duplicate policy without making any changes to the contract
B) The insurance contract will come to an end
C) The insurance company will issue a duplicate policy with renewed terms and conditions based on the current health declarations of the life insured
D) The insurance company will issue a duplicate policy without making any changes to the contract, but only after a court order
✅ ANSWER: A
If the insured person loses the original life insurance policy document the insurance company will issue a duplicate policy without making any changes to the contract. If you lose your policy bond, report it to the insurance company immediately. Get a duplicate policy by complying with the formalities. The duplicate policy confers the same rights as the original policy bond.