Page 27 - IC38 GENERAL INSURANCE

Answers to Test Yourself

Answer 1
The correct option is II.
Insurance Regulatory and Development Authority of India is the regulator for the
insurance industry in India.
Answer 2
The correct option is III.
The need for setting aside reserves as a provision for potential losses in the
future is a secondary burden of risk.
Answer 3
The correct option is II.
Insurance is a method of risk transfer.
Answer 4
The correct option is I.
The bread winner of a family might die untimely leaving the entire family to
fend for itself, such a scenario warrants purchasing of life insurance.
Answer 5
The correct option is III.
The Jan Arogya insurance scheme is run by an insurer and not sponsored by the
Government.

Self-Examination Questions

Question 1
Risk transfer through risk pooling is called ________.
I. Savings
II. Investments
III. Insurance
IV. Risk mitigation

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