Terms of the Policy

Can I cancel the Policy purchased through distance mode if it does not meet my requirements? 

In case of disagreement with the terms of the policy under all life contracts and covers tied to credit/debit/other cards, and for all personal accident and health insurance policy contracts with a term of 3 years or more, you have the right to cancel the insurance policy offered by insurers over distance mode within 30 days of receipt of the policy, provided no claim has already been made on the policy.

Am I entitled to get the details of the conversation based on which the policy is issued without signing formal proposal? 

In all instances where a policy is issued without obtaining a proposal in physical form, insurers shall forward a verbal transcript of the voice/electronic record of the queries raised and answers thereto on the basis of which the policy has been underwritten, along with the policy bond.

Tele callers

 Who are these tele-callers and what are they supposed to do? 

Tele callers are persons engaged by a Tele-marketer for the purpose of interacting with clients through distance mode. The “Tele-marketer” is an entity registered with Telecom Regulatory Authority of India under Chapter III of The Telecom Commercial Communications Customer Preference Regulations. Authorized Verifiers employed by telemarketer/insurance broker shall have to undergo statutory training and pass the examination as required by IRDA. The tele-marketer shall have to comply with any other terms and conditions as may be prescribed by IRDA and shall also comply with various circulars/guidelines and any other direction issued by Telecom Regulatory Authority of India in the matter. For details visit www.irda.gov.in and www.trai.gov.in

What should the tele-caller do while making calls? 

First of all, the name of the caller should be disclosed and the language options available must be indicated. The subsequent communication should continue only in the language chosen by the client. Tele-caller has to clearly mention the name of the insurer and highlight that the purpose of approach is lead generation or solicitation of insurance. The tele-caller should ascertain if the client is interested in continuing with the subject. Only after receiving the consent in explicit terms, the telecaller should proceed with the process of solicitation.

What kind of policy to purchase?

If you are an earning member of your family, and there are people who are financially dependent on you, you need life insurance. 

But you should know or should ask the insurer or agent to get the most efficient and correct policy that suits your needs and willingness to take risk for greater return. 

Accordingly, you can choose a term plan without maturity benefit, an endowment plan with maturity benefit, a Unit Linked Insurance Plan with returns based on the performance of the funds chosen by the policyholder or an annuity plan for periodic payments. 

Every advertisement has a tag line “Insurance is the subject matter of solicitation”. 

What is solicitation? 

“Solicitation” in insurance means approaching a client by an insurer or an intermediary with a view to convince the client to purchase an insurance policy.

Insurance means protection

1.Why buy Insurance? 

Life is full of uncertainties. We face various risks in our day to day life including risks to our life, health, property and so on. Insurance is responsibility, security, peace of mind and the simplest way of telling yourself that you care for your loved ones.

2.What is insurance? 

Insurance is a financial tool specially designed to reduce the financial impact of unforeseen events and create financial security. Insurance works on the law of large numbers where contributions by many in the form of premium paid will take care of the losses of a few. By paying a small premium for covering a certain type of loss, you will be protected for a certain sum of money that you will receive if you face that loss.

3.What insurance to buy? 

Insurance is available for unpredictable events such as death, accident, sickness, loss or damage to motor vehicle, property etc. These are some of the risks against which you should protect yourself from and accordingly buy life insurance, personal accident insurance, health insurance, motor insurance, property insurance etc. While life insurance, critical illness, personal accident and health insurance are offered by life insurance companies; property insurance, motor insurance, householder’s insurance, health and personal accident insurance are offered by non-life insurance companies (also known as general insurance companies).

Insurance Awareness

Insurance Regulatory and Development Authority (IRDA) engaged the National Council of Applied Economic Research (NCAER) to carry out a pan-India survey to assess the levels of insurance awareness in the country. The survey was undertaken in 29 states/union territories.

The survey has brought out various findings from the information it gathered relating to the socio-economic profiles of the insured and the uninsured in both rural and urban areas and correlating it to various life and general insurance parameters. The survey shows that most of the insured are salaried, regular wage earners or self-employed.  Insured households possess a high level of education as opposed to uninsured households which are mostly illiterate.

• Geographic Analysis: The report contains a geographical analysis of the parameters and it is interesting to study the patterns in various states. (this requires more info from the survey or we can drop it in this position)
• Purpose of insurance: A higher percentage of insured households, as compared to uninsured households, are aware that the purpose of insurance is to compensate for losses due to unforeseen events.
• Source of Information: The major source of any information for both the insured and uninsured is television. But when it comes to insurance the major source is insurance agents.
• Of the insured households 97% feel that insurance is relevant for them. Even among the uninsured, 57% feel that insurance is relevant for them.
• Relevance of Insurance: The fear of accidents and untimely death makes them think of insurance.  Among those who did not think that insurance is relevant, the attitude is that they would rather enjoy the present than think of securing the future. There is a general feeling that insurance simply takes away hard-earned money.
• Perceptions of Insurance: More than half of the insured households think that insurance is both a savings and a protection tool.
• Decision to take insurance: The decision is majorly influenced by agents, friends and relatives. There are certain regional variations as to whose influence predominates and this is brought out in the report.
• Life and Non-life Insurance: For purposes of identifying the universe of insured, the survey considered those who held life insurance. Among them, it was noted that only 31% had motor insurance and 6% health insurance.

General Insurance Quiz

1.The main feature of the National Agricultural Insurance Scheme is to insure which of the following?

Life of the farmer Crop of the farmer Animals who are used in agricultural activities Land of the farmer

2.Anmol Jeevan is a _____ of the LIC.

Basic Life Insurance Plan Term Insurance Plan Children’s Plan Pension Plan

3.Which insurance company recently declared to invest 1.5 lakh crore rupees for various railway projects in next five years?

NICL NIACL LIC HDFC

4.In context of heath insurance, under which policy the insurer pays the total or partial amount of the insured person’s hospital bills?

Hospitalization policy Hospital Daily Cash Benefit policy Critical Illness benefit policy All of the above

5.In which year, the General Insurance Corporation of India (GIC) was incorporated as a company?

1971 1972 1973 1974

IMPORTANT INSURANCE AWARENESS QUESTIONS

1.A contract that pledges payment of an agreed upon amount to the person (or his/her nominee) on the happening of an event covered against" is technically known as?

Death coverage Life insurance Savings for future Provident fund

2.The insurance companies collect a fixed amount from its customers at a fixed interval of time. What is it called?

Instalment Contribution Premium EMI

3.Expand the term IFRS.

Indian Financial Reporting Standards Indian Financial Reporting Systems International Financial Reporting Standards International Financial Reporting Systems

4.Which amongst the following is not an insurance company functioning in India?

ICICI prudential ING Vysya National Securities Depository Limited New India Assurance company

5.Which of the following public sector companies/organizations provides insurance cover to exporters?

ECGC NABARD SIDBI IRDA

GK Insurance quiz

1.According Insurance Bill. GOI expecting:

25000Cr 30000Cr 35000Cr 40000Cr

2.Which of the following is the regulator of insurance sector in India?

RBI AMFI IRDA SEBI

3.With which of the following did the State Bank of India enter into a joint venture agreement for undertaking general insurance business?

New India Assurance Ltd. Insurance Australia Group Lehman Brothers Holdings Inc. Allianz

4.What does the term FSDC, used in financial sectors stand for?

Financial Security and Development Council Financial Stability and Development Council Fiscal Security and Development Convention Fiscal Stability and Development Council

5.Which of the following terms is NOT related to the insurance sector?

Indemnity Coverage Misuse Alert Annuity

Insurance Awareness

1.Recently LIC has also launched _______– a participating, non-linked,Savings-cum-protection Single premium plan where in the risk cover is a multiple of single premium.

Jeevan Samridhi Jeevan Sampad Jeevan Sangram Jeevan Sangam

2."Registering the nomination or cancellation or change of nomination shall be regarded as important policy holder services.”as observed by IRDA. Recently it has taken steps regarding this registration that:

No charge for change of nomination No charge for change of address. No charge for late payment of premium. No charge for reimburstment.

3.Insurance Bill was submitted in Rajya Sabha on:

12th March 2014 12th March 2015 13th March 2014 13th March 2015

4.Insurance Sector contributes to our country's GDP growth at approx:

4.5% 5.5% 5.3% 4.1%

5.According Union Budget 2015, Health Insurance limit for Senior Citizen:

25000 30000 35000 40000

Quiz

1.In Insurance Sector,Freelook Period stand for:

The time you may cancel your policy be returning it to the Insurance company.

The time you may stop paying premium as it is overpaid 

The time in which you can draw back death penalty. 

None

2.Insurance Repository system was launched by IRDA on:

16th Sept.2013 16th Oct.2013 16th Nov.2013 None

3.First Indian Insurer is:

Delhi Mutual Funds IRDA GIC Bombay Mutual Life Assurance Society

4.Which of this term is associated with Insurance sector

Blower Racer Rider Serial

5.LIC garnered new premium of approx ____ crore during the first three quarters of 2014-15

57000 CR 54000 CR 52000 CR 66000 CR

General Insurance Quiz

1.IRDA was renamed on:

29th Dec 2014 31st Dec 2014 26th Dec 2014 30th Dec 2014

2.Oldest operating General Insurance company in India

NICL NIACL LIC OICL

3.The Geneva Association identifies fundamental trends and strategic issues where insurance plays a substantial role or which influence the insurance sector,Who was the Secretary General of Geneva Association during 2012-2014:

Prof. Orio Giarini, Mr Patrick M. Liedtke, Mr John H. Fitzpatrick Dr Garen.D.Patrick

4.IIS's last Annual seminar on Insurance held in 2014,Its Venue was:

Geneva Basel London New York

5.Which General Insurance company completed its 50years in 1997:

GIC UIICL NICL OICL

Sterling Insurance Quiz

1.According to 1956 Index,LIC absorbed how many Non-Indian Insurers:

15 16 75 76

2.Which is a part of Indian Insurance Repository:

Muthoot group IIFL NSDL None

3.The establishment of Insurance Repository system in India was mainly directed by:

Man Mohan Singh Arun Jaitley P.Chidambaram S.Subhramaniam

4.The first life insurance policies were taken out in the early 18th century. The first company to offer life insurance was:

Amicable Society for a Perpetual Assurance Office Society for Equitable Assurances on Lives. Lloyd's Coffee House None of these

5.Who was the founder of Oriental Life Insurance Company(1818-1834):

Anita Kochar Anita Bhavsar Anita Kapur. None

GK Insurance

1.Hindusthan Insurance Society was founded by:

Rabindranath Tagore. 

Surrendranath Tagore 

Debendranath Tagore 

Sharmila Tagore

2.LIC started its journey in 1956.Which of the Financial Institution also started its journey in the same year:

International Financial Corporation(IFC) 

Organization for Economic Cooperation & Development(OECD) 

World Trade Organization.(WTO) 

None

3.GIBNA was passed in the year:

1971

1972 

1973 

1974

4.Which is NOT an Indian Development bank:

NABARD 

EXIM BANK 

IBRD 

none of these

5.Which of these is NOT a Principle of Insurance:

Principle of Insurable Interest 

Principle of Indemnity 

Principle of Last Resource

None of these

GK Insurance quiz

1.National Insurance Academy is situated in:

Delhi Pune Salem Telengana

2.IRDA's previous Headquater was in:

Delhi Mumbai Chennai Kolkata

3.The Chairman of General Insurers' (Public Sector) Association of India?

G.Srinivasan T.Vijayan M.Kharrat None

4.NICL's Director is

AVG KUmar SK Roy A.K.Saxena K.P.Brahma

5.Which company celebrated its platinum Jubliee in 2012:

UIICL NICL GIC LIC

Insurance Quiz

1.Which of the following is not the principal of insurance

Utmost Good Faith 

Principle of Contribution 

Maximization of Profit 

Causa Proxima

2."Stepping into shoes of other" related with

Principle of CAUSA PROXIMA 

Principle of Subrogation 

Principle of Contribution 

Principle of Indemnity

3.A person must be benefited by that thing which he wants to be insured is called

Interest 

Insurable Interest 

Causa Proxima 

Contribution of That person

4.Supervision and Development of Insurance in India is in the hands of

SEBI 

Insurance Regulatory Development Authority 

Life Insurance Corporation of India 

Central Government

5. IRDA was constituted by which of the following committee's recommendations

Kumarmangalam Committee 

Malhotra Committee 

Singh Committee

Sahota Committee

General Insurance Quiz

1.A person who is in the business of providing personalised advice on life insurance to individuals in New Zealand must be
A Licensed Financial Adviser 
A Registered Financial Adviser 
An Approved Financial Adviser 
An Authorised Financial Adviser

2.If an insured person dies, the person entitled to receive the life insurance benefit is
The next of kin of the insured person 
The executor of the insured person’s will, regardless of who the policy owner is. 
The policy owner, but only if the policy owner is related to the life insured 
The policy owner, regardless of who that person is

3.If you miss a premium on your life insurance policy
Your policy is automatically cancelled on the day after the premium is due 
Your policy is automatically cancelled if it remains unpaid for 14 days 
Your policy can only be cancelled after one month and only if the insurer notifies you 
Your policy can never be cancelled by the insurer for non-payment of premiums.

4.If you first suffer a medical condition after your life insurance policy is issued
You must notify the insurance company in order to be covered for that condition 
You have no obligation to notify the insurance company - you are already covered 
You need only notify the insurance company if the condition is life-threatening 
Notifying the insurance company is optional, but is recommended for claim purposes

5. Largest Life Insurance Company in India is
The New India Assurance Company Limited 
Life Insurance Corporation of India (LIC) 
United India Insurance Company Limited 
National Insurance Company Limited

Sterling Insurance Quiz

1.In order to determine the rates they charge, insurance companies look at
Family health history Potential dangerous hobbies Smoking/drinking history All of the above

2.You surrender your life insurance policy, if you:
Decrease the amount of life insurance that you need Cancel a life insurance policy before the maturity date Donate the value of the policy to a first degree Donate the cash surrender value of the policy

3.The main purpose of life insurance is to
Make up for loss of earnings if an insured person is unable to ever work again Pay for urgent medical expenses to save the life of an insured person if that is needed Meet an insured person’s debts and other financial commitments in the event of death Provide a lump sum if an insured person is diagnosed with a life-threatening illness

4.The best time to apply for life insurance is
Today, because you don’t know what might happen to you tomorrow Tomorrow, because you shouldn’t do now what you can put off until then As soon as you have any dependants, whenever in the future that might be As soon as you develop a serious medical condition, so you can be covered for it.

5.Today, medical examinations and tests are
Never required for a life insurance application Sometimes required for a life insurance application Usually required for a life insurance application Always required for a life insurance application.

Life Insurance Quiz

1.This insurance provides coverage for a specific period of time, usually from one to 30 years:
Universal Life Insurance Whole Life Insurance None of the above Term Life Insurance

2.The cash surrender value of a permanent life insurance is
Also called the death benefit. The amount available in cash upon the policy owner's termination before it becomes payable by death. The payment to the insurance company for insurance coverage. A refund of excess premium paid to the owner of an individual participating life insurance policy.

3.Which of the following policies is not a permanent life insurance?
Universal Life Insurance Variable Life Insurance Whole Life Insurance Term Life Insurance

4.Which life insurance insures two individuals in one insurance plan?
Whole Life Insurance Universal Life Insurance Survivorship Life Insurance Term Life Insurance

5.What is the rule of thumb on how much life insurance coverage you need?
Three times your current assets Five to seven times your annual gross income Five times your assets Twice the value of your house

Banking Awareness

1.Which Insurance policy gives holder the benefits of both Insurance and Investment?
Term Insurance Policies Money-back Policies Unit-linked Investment Policies Pension Policies

2.Which among the following is the correct full form of ESIC?
Employee’s State Insurance Corporation Employer’s State Insurance Corporation External State Insurance Corporation Exact State Insurance Corporation

3.Under ESIC, Employer contribution rate and Employee contribution rate respectively is
4.75% & 1.75% 1.75 % & 4.75% 12% & 12% none

4.The process of identifying and classifying the degree of risk represented by a proposed insured. As per insurance sector, what does the term stands for?
Underwriting Collateralized Mortgage Obligation Actuary Annuity

5.A person who identifies, examines and classifies the degree of risk represented by a proposed insured in order to determine whether or not coverage should be provided and, if so, at what rate. In terms of insurance, what does a person stands for?
Merchant Banker Forex dealers Underwriter Registrars

Insurance Sector in India

1.What are the main functions performed by the IRDA?
Protect the rights of policy holders Adjudication on insurance related matters Promoting insurance business All of these

2.If an insurance policy holder is not satisfied with the award of the insurance ombudsman, he / she can approach to__?
Courts of law Consumer forums Either a or b The award of insurance ombudsman can not be challenged

3.Which one of the following is the example of Insurance depositories?
Central Insurance Repository Limited (CIRL) Karvy Insurance repository Limited NSDL Database Management Limited All of these

4.Which of the following is correct full form of IGMS with reference to insurance sector?
Integrated Grievance Management System Internal Grievance Management System Important Grievance Management System Integral Grievance Management System

5.Up to what extent, FDI in Insurance sector is allowed by the Government of India (GOI)?
26% 49% 51% 100%

Long-Term Care Insurance

Long-term care (LTC) is defined as a need for assistance with some of the activities of daily living (often called ADLs). ADLs include functions that most of us perform each day, like eating, bathing, using the bathroom, dressing, transferring and maintaining continence. The need for assistance may be due to physical inability or mental impairment, such as memory loss, Alzheimer's or dementia. 

The reason to buy long term care insurance is to protect your assets in case you need to pay for assisted living, home care or a nursing home stay. Long-term care insurance helps you pay for these services, which can be very expensive and, over time, can be financially devastating. A policy also ensures that you can make your own choices about what long-term care services you receive and where you receive them in advance.

Within the long-term care insurance contract, there are two broad levels of care outlined in the policy, including:

• Skilled Nursing Care: This is usually for someone with an acute condition that requires intensive medical attention for a period of less than 100 days. The two objectives of skilled care are to help the person with comfort and assistance if the situation is terminal or to assist the person during a recovery period.
  
  
• Hospice Care: This is the term used for the care provided to individuals facing a terminal condition, or who have less than six months to live. This care can be provided in a home or a facility.
  
  
• Non-Skilled Nursing Care/Custodial Care: This is for a person with a chronic condition from which he or she will not recover. This type of care is usually received at home or in assisted living facilities. This type of care lasts beyond 100 days, and even up to several years.

There are many settings in which long-term care can be administered or provided. The type of LTC policy determines where you can receive your services. 

• Home Care: Pays for care in your home. According to "Long-Term Care Planning" (2007) by Allen Hamm, as of 2007, more than 10 million people received care at home and home care is projected to increase 178% by 2030.
  
  
• Facility Care: Pays for care in a facility, such as an assisted living community, adult day center, continuing care retirement community or nursing home.
  
  
• Respite Care: Pays for services that enable some relief (rest or vacation period) to family members providing care giving. This can be provided either in the home or at a facility.