Insurance - Study Mode

[#426] Insurance benefits replace
Correct Answer

(D) The monetary losses, but only to some extent

Explanation

Solution: Insurance benefits replace the monetary losses, but only to some extent.

[#427] What are the reason(s) for increase in health insurance in India?
Correct Answer

(D) All of the above

Explanation

Solution: Health insurance provides people with a much needed financial backup at times of medical emergencies. Health risks and uncertainties are a part of life. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly. Increased income, health consciousness, price liberalization and the introduction of private healthcare financing is bringing the change.

[#428] Which of the following statements is not correct?
Correct Answer

(D) Tax planning is illegal in India

Explanation

Solution: Tax planning is not illegal in India. When tax planning is done inside the frameworks defined by the respective authorities, it is fully legal and in fact a smart decision. However, using shady techniques to avoid tax payments is illegal.

[#429] Insurability of women is governed by
Correct Answer

(C) Both A & B

Explanation

Solution: Insurability of women is governed by need for insurance and capacity to pay premiums. Thus, insurance companies may decide to grant full insurance only to those who have earned income of their own and may impose limits on other categories of women. Similarly, some conditions may be levied on pregnant women.

[#430] Which of the following is not correct with regards to insurable interest?
Correct Answer

(C) Friends taking out insurance on one another

Explanation

Solution: Friends taking out insurance on one another is not correct with regards to insurable interest.