INDIAN ECONOMY MOCK TEST – CHAPTER 21

Consider the following statements –

1. Life Insurance Corporation (LIC) is the first wholly Indian life insurance company.
2. Life Insurance Companies Act was passed in 1912.
3. Life insurance was nationalised in India in 1956.
4. General insurance was nationalised in India in 1972.

Which of the above is/are CORRECT ?

In the context of insurance sector in India, which of the following statements is INCORRECT ?

Consider the following terms with respect to insurance sector –

IP = Insurance Penetration

ID = Insurance Density

G = Total GDP

P = Total Population

which of the following expresses the relationship between these correctly ?

In the context of insurance penetration in India, consider the following statements –

1. It is a measure of insurance sector’s contribution to GDP.
2. Insurance penetration in life insurance has been declining consistently.
3. Insurance density in life insurance has been increasing consistently.

Which of the above statements is/are CORRECT ?

In the context of claims ratio in insurance sector, consider the following statements –

1. Claims ratio more than 100 percent indicates that insurance company is unsustainable.
2. Claims ratio of less than 50 indicates an efficient insurance company.

Which of the above is/are CORRECT ?