M.Com Insurance Management Exam Paper
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Purushotham SkM.Com Insurance Management Exam Paper
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Purushotham SkCommon questions
Powered by AIMoral hazards refer to the risk of an insured's behavior changing due to having insurance, leading to increased likelihood of claiming, while legal hazards involve regulatory and legal aspects that may increase risk. These hazards necessitate careful scrutiny in underwriting to mitigate potential fraudulent and costly claims .
In life insurance, upon death, the claim is filed with necessary documents like the death certificate. The insurer verifies the policy details and the cause of death before settling the claim. For maturity claims, upon policy term completion, the policyholder files a claim providing identity proof and the policy document to receive their due survival benefits .
The principles of insurance include utmost good faith, insurable interest, indemnity, subrogation, contribution, and proximate cause. They ensure that insurance contracts are based on trust, require a legitimate interest, provide coverage against actual losses, allow insurers to recover costs, distribute risk, and ensure claims are settled based on the direct cause of loss .
Travel insurance covers risks such as trip cancellation or interruption, medical emergencies, lost luggage, flight delays, and accidental death or injury during travel. It provides policyholders financial protection and assistance services, helping manage unforeseen expenses and offering peace of mind during travel .
Different types of life insurance policies include term insurance, providing coverage for a specific period; whole life insurance, offering lifelong coverage with a savings component; endowment plans, combining savings with insurance; money-back policies, providing periodic returns; unit-linked plans, with investment flexibility; and child plans, focusing on children's future needs. Each type offers distinct benefits such as financial protection, savings, investment growth, or financial planning for specific life stages .
The 7P's of marketing strategies for life insurance include product, price, place, promotion, people, process, and physical evidence. These strategies are used to tailor offerings to customer needs, determine competitive pricing, optimize distribution channels, execute effective promotional campaigns, train personnel properly, ensure efficient service delivery, and present tangible cues of reliability .
The IRDAI (Insurance Regulatory and Development Authority of India) performs functions such as ensuring the financial stability of the insurance sector, protecting policyholders' interests, promoting efficiency in the conduct of insurance business, and regulating the insurance industry to safeguard public interest .
Bancassurance offers the advantage of a larger customer base due to the bank's existing clients and enhances cost-efficiency by utilizing the bank's established distribution channels .
Reinsurance involves an insurance company transferring a portion of its risks to another insurer to mitigate potential losses. This can spread risk and increase the insurer's capacity to underwrite more policies. For instance, a company might reinsure a significant portion of its catastrophic risk, minimizing loss exposure from events like natural disasters .
The growth and development of the insurance sector in India have been driven by factors such as regulatory reforms by the IRDAI, increased awareness and demand for insurance products, technological advancements, and the entry of private players which have diversified the market and increased competition .