This article is about- Insurance, Insurance Terms, Insurance Awareness, automobile insurance questions, low price insurance, insurance company, insurance rates, cheap insurance
What is Insurance?
Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, or insurance carrier. A person or entity who buys insurance is known as an insured or policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by ownership, possession, or preexisting relationship.
The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster.
Important Insurance Terms
Blanket Insurance A policy designed to provide coverage under a single limit for two or more items (e.g. building and/or contents), two or more locations, or a combination of items and/or locations
Deferment Period Period between the subscription date of an insurance–cum–pension policy and the time at which the first installment of pension is received is called as deferment period.
Annuity Certain An insurance contract that provides an annuity for a certain number of years, irrespective of whether the insured is alive or dead.
Written Premiums The premiums on all policies which a company has issued in some period of time.
Captives Insurers that are created and wholly–owned by one or more non–insurers, to provide owners with coverage. A form of self-insurance.
Commercial general liability (CGL) A broad commercial policy that covers all liability exposures of a business that are not specifically excluded. Coverage includes product liability, completed operations, premises and operations, and independent contractors.
Punitive damages Assessed when it is deemed that the defendant acted in a grossly negligent manner and deserves to have an example made of his or her behaviour so as to discourage others from acting that way. Usually imposed in addition to other damages.
Errors and Omissions Insurance (E & O insurance) Insurance that covers liability for errors and omissions, such as incorrect records or accounting.
Co–insurance Method of sharing insurance risk between several insurers. The policyholder will deal as a lead insurer who issues documents and collects premiums. The policy will detail the shares held by each company.
Uberrimae “Utmost Good Faith’. The basis of all insurance contracts – both parties to the contract are bound to exercise good faith and do so by a full disclosure of all information material to the proposed contract.
Subrogation Fidei It is defined as the transfer of rights and remedies of the insured to insurers who have indemnified the insured in respect of the loss
Fidelity Bond A form of protection which reimburses an employer for losses caused by dishonest or fraudulent, acts of employees.
Government-owned insurance companies of India
- General Insurance Corporation of India
- Life Insurance Corporation
- National Insurance Company
- New India Assurance
- The Oriental Insurance Company
- United India Insurance Company
Important Insurance Question-
The central office of the Life Insurance Corporation of India (LIC) is located at
(A) Kolkata (B) New Delhi (C) Chennai (D) Pune (E) Mumbai
Which of the following is not the name of an Insurance Scheme launched by the Government of India
(A) Janashree Bima Yojana (B) Krishi Shramik Sarnajik Suraksha Yojana (C) Shiksha Sahyog Yojana
(D) Varsha Bima Yojana (E) National Saving Scheme Programme
The Life Insurance Corporation Of India has how many Zonal offices in India ?
(A) Five (B) Eight (C) Ten (D) Fifteen (E) None of these
As per the news published in various newspapers, Life Insurance policies may become paperless in the near future. This means
1) LIC will not insure any person here after as it has already reached its peak
2) LIC will not ask for any documents from a person who wishes to purchase an Insurance policy
3) All policy related documents and policy certificates will henceforth be available in electronic form and not in their present physical
4) LIC henceforth will not entertain any claim or complaint in written form or on paper. Things should be in electronic condition.
5) None of these
The punch line of the advertisement of which of the following organization is “Jindagi ke sath bhi Jindagi ke bad bhi” ?
(A) New India Assurance (B) General Insurance Corporation (C) ICICI Prudential
(D) Life Insurance Corporation Of India (E) None of these
Which of the following insurance companies writes its punch line in the advertisements “Insurance is the subject matter of solicitation” ?
(A) CIC (B) LIC (C) ING Vysya Life InsuranceCo. (D) Tata AIG Life Insurance Co (E) None of these
If an organization wishes to venture into Insurance Business it has to obtain a licence first from which of the following ?
(A) Indian Banks Association (IBA) (B) Security and Exchange Board of India (SEBI)
(C) Tariff Advisory Committee (TAC) (D) Insurance Regulatory and Development Authority of India (IRDAI)
(E) None of these
Which of the following was the parent company of New India Assurance ?
(A) LIC (B) GIC (C) Oriental Insurance Co. Ltd. (D) United India Insurance (E) None of these
The New India Assurance Company was established in 1919 by
(A) Dorab Tata (B) G. D. Birla (C) Jamunalal BajaJ (D) Kamlapat Singhania (E) None of these
Which of the following is largest Non Life Insurance Company in India ?
(A) ICICI Lombard General Insurance Company Ltd. (B) United India Insurance Company Ltd.
(C) General Insurance Company Ltd. (D) New India Assurance Company Ltd. (E) None of these
Which of the following Insurance Companies was launched with NABARD as one of its promoter’s with 30% stake in it ?
(A) General Insurance Corporation Ltd. (B) National Insurance Cornpany Ltd.
(C) Agriculture Insurance Company Ltd, (D) SBI Life Insurance Company Ltd. (E) None of these
Which of the following words/ terms is closely associated with the insurance business
(A) Archives (B) Donation (C) Actuary (D) Quest (E) All are associated with insurance
Which of the following is the best description of what insurance is?
1) Insurance = Collective bearing of risk
2) Insurance = Paying for other’s mistake
3) Insurance = Taking from ‘A’ to pay ‘B’
4) Insurance = Paying for something which will never happen
5) All of these
Which of the following correctly describes what the ‘Bancassurance’ is
1. It is an arrangement whereby the branches of a bank sell / distribute insurance products of an insurance company.
2. It is a new product developed/ launched by the banks in which the risks of the high value customers are covered for any losses to their property and/or lives through an insurance cover.
3. It is a new product launched by some banks by which they are providing insurance cover to exporters/ importers for the losses, if any due to high fluctuations in the exchange rates of dollars and other major currencies.
(A) Only 1 (B) Only2 (C) Only 3 (D) All 1, 2 and 3 (E) None of these
In Insurance policies we always find a date which is “Date of Maturity”. What does it mean?
1) This is the date on which the policy was sold to the customer/person insured.
2) This is the date on which the policy holder will have to submit his/her claim seeking the amount of the policy. Otherwise the company will not make any payment to him/her.
3) This is the date on which the contract between the person and insurance company will come to an end.
4) The date on which the insurance company makes the final payment to the insured person which is normally fifteen days after the “payment due date”.
5) None of these