Module-1 Introduction to Insurance

1. Insurance can be defined as

Transfer of the risk from the insured to the insurer

Transfer of risk from self to family

Transfer of risk to a later date

None of the above

2. Who is an Insurer?

The party whose risk is covered

The party bearing the risk

The party who is a mediator

None of the above

3. The basic threats which all of us may encounter to varied extent are

Illness

Accident

Disability

Death

All of the above

4. The following risks in life are certain

Death

Accident

Old age

1 & 3 only

5. Purpose of an Insurance is to protect against

Future risks

Uncertainties of life

The losses that may be incurred due to chance events

All of the above

6. Insurance helps you

Own a home

To maintain your standard of living

Cover health care costs

All of the above

7. Workmen Compensation Act 1923 provides for

Workmen getting compensatory leave for work done

Workmen getting compensatory wages for work done

Workmen getting compensation for accident while on duty

None of the above

8. Motor Vehicle Act 1988 specifies that

Third party liability insurance is compulsory

Insurance for the person driving the vehicle is compulsory

Insurance for the family of the vehicle owner is compulsory

None of the above

9. National Agriculture Insurance Scheme is called

Rashtriya Krishi Bima Yojna

Aam Aadmi Yojna

Rashtriya Swastha Bima Yojna

None of the above

10. Hut insurance scheme provides for

Compensation in case of destruction of hut

Financial benefit for construction of a hut

Rental income on construction of a house

None of the above