IV. Long Answer Questions<\/span><\/p>\nQuestion 1.
\nExplain the various types of Insurance
\nAnswer:
\nThe insurance covers different types of risks. All contracts of insurance can be broadly classified as follows:
\nLife Insurance:
\nLife Insurance may be defined as a contract in which the insurance company called insurer undertakes to ensure the life of a person called assured in exchange for a sum of money called a premium which may be paid in one lump sum or monthly, quarterly, half-yearly, or yearly and promises to pay a certain sum of money either on the death of the assured or on expiry of a certain period.<\/p>\n
Non – Life Insurance:
\nIt refers to insurance not related to humans but related to properties.<\/p>\n
Fire Insurance:
\nFire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by a fire during a specified period upto the amount specified in the policy. an interest in the preservation of the thing or life insured so that they will suffer financially on the happening of the event against which they are insured.<\/p>\n
Marine Insurance:
\nMarine insurance is a contract of insurance under which the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses. The insured pays the premium in consideration of the insurer\u2019s (underwriter\u2019s) guarantee to make good the losses arising from marine perils or perils of the sea.<\/p>\n
Health insurance:
\nHealth insurance policy is a contract between an insurer and an individual or group, in which the insurer agrees to provide specified health insurance at an agreed upon price (premium).Disability resulting from illness or accident may be peril to family because it not only cuts off income but also creates large medical expenses. Health insurance is taken as safeguard against rising medical costs. It provides risk coverage against unforeseen health expenditure that may result in financial hardship.<\/p>\n
Miselleaneous Insurance:
\nIt includes the insurance which are made on the following terms:
\nMotor vehicle Insurance, Burglary Insurance, Crop Insurance, Sports Insurance, Amartya Sen Siksha Yoj ana,
\nRajeswari Mahila Kalyan Bima Yojana are the miscellaneous Insurance.<\/p>\n
<\/p>\n
Question 2.
\nExplain the principles of insurance.
\nAnswer:
\n1. Utmost Good Faith:
\nAccording to this principle, both insurer and insured should enter into a contract in good faith. Insured should provide all the information that impacts the subject matter. The insurer should provide all the details regarding the insurance contract.<\/p>\n
2. Insurable Interest:
\nThe insured must have an insurable interest in the subject matter of insurance. Insurable interest means some pecuniary interest in the subject matter of the insurance contract.<\/p>\n
3. Indemnity:
\nIndemnity means security or compensation against loss or damages. In insurance, the insured would be compensated with the amount equivalent to the actual loss and not the amount exceeding the loss. This principle ensures that the insured does not make any profit out of the insurance. This principle of indemnity is applicable to property insurance alone.<\/p>\n
4. Causa Proxima:
\nThe word \u2018Causa Proxima\u2019 means \u2018nearest cause\u2019. According to this principle, when the loss is the result of two or more causes, the proximate cause, i.e. the direct. The direct, the most dominant, and most effective cause of a loss should be taken into consideration. The insurance company is not liable for the remote cause.<\/p>\n
5. Contribution:
\nThe same subject matter may be insured with more than one insurer then it is known as \u2018Double Insurance\u2019. In such a case, the insurance claim to be paid to the insured must be shared on contributed by all insurers in proportion to the sum assured by each one of them.<\/p>\n
6. Subrogation:
\nSubrogation means \u2018stepping the shoes on others\u2019. According to this principle, once the claim of the insured has been settled, the ownership right of the subject matter of insurance passes on to the insurer.<\/p>\n
7. Mitigation:
\nIn case of a mishap, the insured must take off all possible steps to reduce or mitigate the loss or damage to the subject matter of insurance.<\/p>\n
<\/p>\n
Question 3.
\nDiscuss the causes of risk.
\nAnswer:
\nBusiness risk arises due to a variety of causes which are classified as follows:
\n1. Natural Causes:
\nHuman beings have little control over natural calamities like floods, earthquakes, lightning, heavy rains, famine, etc. These result in heavy loss of life, property, and income in the business.<\/p>\n
2. Human Causes:
\nHuman causes include such unexpected events as dishonesty, carelessness or negligence of employees, stoppage of work due to power failure, strikes, riots, management inefficiency, etc.<\/p>\n
3. Economic Causes:
\nThese include uncertainties relating to demand for goods, competition, price, collection of dues from customers, change of technology or method of production, etc. Financial problems like rising interest rates for borrowing, levy of higher taxes, etc., also come under this type of causes as they result in the higher unexpected cost of operation of the business.<\/p>\n
4. Other Causes:
\nThese are unforeseen events like political disturbances, mechanical failures such as the bursting of the boiler, fluctuations in exchange rates, etc. which lead to the possibility of business risks.<\/p>\n
11th Commerce Guide Insurance Additional Important Questions and Answers<\/h3>\n
I. Choose the Correct Answer:<\/span><\/p>\nQuestion 1.
\nPresently IRDAI headquarters is in ……………..
\n(a) Hyderabad
\n(b) Chennai
\n(c) Mumbai
\n(d) Delhi
\nAnswer:
\n(a) Hyderabad<\/p>\n
Question 2.
\n………………….. is the basic principle behind every Insurance contract.
\na) Co-operation
\nb) Consolidation
\nc) Co-Current
\nd) Convenience
\nAnswer:
\nb) Consolidation<\/p>\n
<\/p>\n
Question 3.
\nWhen a ship \u00a1s insured against any type of danger it is known as ……………..
\na) Cargo Insurance
\nb) Marine Insurance
\nc) Hull Insurance
\nd) Voyage Insurance
\nAnswer:
\nc) Hull Insurance<\/p>\n
<\/p>\n
Question 4.
\nInsurance Act was established in the year…………
\na) 1938
\nb) 1966
\nc) 1983
\nd) 1984
\nAnswer:
\nd) 1984<\/p>\n
II. Very Short Answer Questions:<\/span><\/p>\nQuestion 1.
\nWhat do you mean by Cargo Insurance?
\nAnswer:
\nWhen a marine insurance policy is taken by the cargo owner to be compensated for loss caused to his cargo during the journey, it is known as cargo insurance.<\/p>\n
<\/p>\n
Question 2.
\nWhat do you mean by surrender value?
\nAnswer:
\nThe surre\u00f1der value is the cash value of the policy which is payable to the policyholder if he decides to terminate the contract.<\/p>\n
III. Short Answer Questions:<\/span><\/p>\nQuestion 1.
\nWhat are the objectives of IRDAI?
\nAnswer:<\/p>\n
\n- To promote the interest and rights of policyholders.<\/li>\n
- To promote and ensure the growth of the Insurance Industry.<\/li>\n
- To ensure speedy settlement of genuine claims and to prevent frauds and malpractices.<\/li>\n<\/ol>\n
Question 2.
\nWhat is Annuity Policy?
\nAnswer:
\nUnder this policy, the assured sum or policy money is payable in monthly or annual installments after the assured attains a certain age. The policy is useful to those who prefer a regular income after a certain age.<\/p>\n
<\/p>\n
Question 3.
\nWrite a short note on Amartya Sen Siksha Yojana:
\nAnswer:
\nThe General Insurance Company offers to secure the education of dependent children under this policy. If the assured parent\/legal guardian goes through any bodily injury resulting solely and directly from an accident due to external, violent, and visible means and if such injury shall within twelve calendar months of its occurrences be the only direct cause of his\/ her death or permanent total disablement, the insurer shall indemnify the insured student in respect of all covered expenses to be incurred from the date of occurrence of such accident till the expiry of policy or completion of the duration of covered course whichever occurs first and such indemnity shall not exceed the sum assured as stated in the policy schedule.<\/p>\n
IV. Long Answer Questions:<\/span><\/p>\nQuestion 1.
\nBriefly explain the claim settlement.
\nAnswer:
\nThere are two ways by which health insurance claims are settled:
\nCashless:
\nThe claim amount needs to be approved by the TPA and the hospital settles the amount with the TPA. (TPA or Third Party Administrator is a middleman between Insurer and the Customer)<\/p>\n
Reimbursement:
\nThe insured avails himself or herself of the treatment and settles the hospital bills directly at the hospital. The insured can claim reimbursement later on by submitting relevant bills\/documents for the claimed amount to the TPA.<\/p>\n
<\/p>\n
Question 2.
\nBriefly explain the Duties and Function of IRDAI:
\nAnswer:
\nSection 14 of IRDAI Act, 1999 lays down the duties and functions of IRDAI:<\/p>\n
\n- It issues the registration certificates to Insurance Companies and regulates them.<\/li>\n
- It provides a license of insurance to intermediaries such as agents and brokers after specifying the required qualifications and set norms\/code of conduct for them.<\/li>\n
- It promotes and regulates the professional organizations related to the insurance business to promote efficiency in the insurance sector.<\/li>\n
- It regulates and supervises the premium rates and terms of insurance covers.<\/li>\n
- It specifies the conditions and manners, according to which the insurance companies and other intermediaries have to make their financial reports.<\/li>\n
- It regulates the investment of policyholder\u2019s funds by insurance companies.<\/li>\n
- It also ensures the maintenance of solvency margin (the company\u2019s ability to pay out claims) by insurance companies.<\/li>\n<\/ul>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 15 Insurance Text Book Back Questions and Answers, Notes. Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 15 Insurance 11th Commerce Guide Insurance Text Book Back Questions and Answers EXERCISE I. Choose the Correct Answer Question 1. The basic principle of insurance is ………………………………….. …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-33409","post","type-post","status-publish","format-standard","hentry","category-class-11"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/posts\/33409"}],"collection":[{"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/comments?post=33409"}],"version-history":[{"count":1,"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/posts\/33409\/revisions"}],"predecessor-version":[{"id":41648,"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/posts\/33409\/revisions\/41648"}],"wp:attachment":[{"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/media?parent=33409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/categories?post=33409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/samacheerkalvi.guide\/wp-json\/wp\/v2\/tags?post=33409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}