Module - 5
1. What is the primary objective of microinsurance?
a) Providing low-cost loans to low-income individuals
b) Offering financial protection to low-income individuals against risks
c) Promoting savings and investment among low-income individuals
d) Facilitating access to microcredit for small businesses
2. Which of the following is a characteristic of microinsurance?
a) High premium costs
b) Limited accessibility for low-income individuals
c) Tailored to the specific needs of the target market
d) Designed only for high-income individuals
3. What is the role of risk pooling in microinsurance?
a) It increases the premium costs for policyholders.
b) It limits the coverage options for policyholders.
c) It spreads the risks among a large group of policyholders.
d) It excludes high-risk individuals from obtaining insurance.
4. How does microinsurance contribute to social welfare?
a) By providing loans to low-income individuals
b) By improving access to education for vulnerable populations
c) By enhancing the economic stability and well-being of marginalized
populations
d) By promoting luxury goods consumption among low-income individuals
5. What does microinsurance primarily offer coverage against?
a) Economic inflation
b) Natural disasters
c) Stock market fluctuations
d) Currency exchange rates
6. How does microinsurance differ from conventional insurance?
a) Microinsurance policies are more expensive.
b) Microinsurance policies have longer terms.
c) Microinsurance policies are tailored to low-income individuals.
d) Microinsurance policies cover only high-income individuals.
7. Which of the following is an objective of microinsurance?
a) Promoting excessive risk-taking among low-income individuals
b) Encouraging dependency on government assistance
c) Enhancing the economic stability of low-income individuals
d) Limiting access to financial services for low-income individuals
8. How does microinsurance contribute to poverty alleviation?
a) By increasing income inequality
b) By providing direct cash transfers to low-income individuals
c) By safeguarding the assets and income of low-income households
d) By promoting excessive debt among low-income individuals
9. What is one of the causes of risks associated with microinsurance?
a) Abundant financial resources
b) Accurate and comprehensive data
c) Limited financial resources
d) Advanced infrastructure
10. Which of the following risks are microinsurance policies exposed to?
a) Business expansion risks
b) Unpredictable weather events
c) Technological advancements
d) Political stability
11. What is the impact of policyholder fraud on microinsurance?
a) It decreases the financial losses for the insurer.
b) It increases the affordability of microinsurance premiums.
c) It leads to financial losses for the insurer.
d) It improves the credibility of microinsurance policies.
12. How does limited infrastructure affect microinsurance?
a) It facilitates policy distribution and claims processing.
b) It improves access to financial services for low-income individuals.
c) It hinders policy distribution, premium collection, and claims processing.
d) It ensures efficient communication networks for microinsurance
providers.
13. What is an insurable risk?
a) A risk that cannot be transferred to an insurance company
b) A risk that is intentionally caused by the insured
c) A risk that can be transferred to an insurance company through an
insurance policy
d) A risk that is predictable and certain to occur
14. Which principle of insurance ensures that the insured cannot profit from
the insurance policy?
a) Principle of indemnity
b) Principle of subrogation
c) Principle of contribution
15. Which of the following pension schemes is specifically designed for workers
in the unorganized sector, such as maids, drivers, gardeners, etc.?
a) NPS Swavalamban
b) Atal Pension Yojana (APY)
c) Pradhan Mantri Shram Yogi Maan-dhan (PMSYM)
d) National Pension System (NPS)
16. Under the Atal Pension Yojana (APY), what is the minimum age at which an
individual can join the scheme?
a) 18 years
b) 25 years
c) 40 years
d) 60 years
17. Which regulatory body is responsible for overseeing and regulating the
National Pension System (NPS) in India?
a) Insurance Regulatory and Development Authority of India (IRDAI)
b) Pension Fund Regulatory and Development Authority of India (PFRDA)
c) Securities and Exchange Board of India (SEBI)
d) Reserve Bank of India (RBI)
18. Under the NPS Swavalamban scheme, what is the maximum annual income
limit for subscribers to be eligible?
a) Rs. 50,000
b) Rs. 1 lakh
c) Rs. 2.5 lakhs
d) No income limit
19. Which of the following pension schemes is open to all citizens of India,
including those working in the organized sector?
a) NPS Swavalamban
b) Atal Pension Yojana (APY)
c) Pradhan Mantri Shram Yogi Maan-dhan (PMSYM)
d) National Pension System (NPS)
20. What is the primary objective of the Insurance Regulatory and
Development Authority of India (IRDAI) with respect to microinsurance?
a) Promote the sale of complex insurance products to low-income
individuals
b) Ensure maximum profitability for insurance companies offering
microinsurance
c) Provide affordable and accessible insurance products to low-income
individuals
d) Regulate the operations of microfinance institutions
21. According to the Micro Insurance Regulations, 2015, what is the maximum
sum assured limit for individual microinsurance policies?
a) Rs. 50,000
b) Rs. 1 lakh
c) Rs. 2 lakhs
d) No maximum limit
22. Which types of insurance are typically covered under microinsurance
policies?
a) Life insurance only
b) Health insurance only
c) Property insurance only
d) Life, health, and property insurance
23. What is the maximum premium that can be charged for a microinsurance
policy, as per the regulations?
a) 2% of the sum assured
b) 4% of the sum assured
c) 6% of the sum assured
d) 10% of the sum assured
24. Who can distribute microinsurance policies as per the Micro Insurance
Regulations, 2015?
a) Only licensed insurance agents
b) Only registered microfinance institutions
c) Only government agencies
d) Licensed insurance agents, intermediaries, and registered microfinance
institutions
25. Who can appoint microinsurance agents as per the regulations?
a) Insurance Regulatory and Development Authority of India (IRDAI)
b) Insurance companies offering microinsurance products
c) Registered microfinance institutions
d) Government agencies
26. What is the minimum educational qualification required to become a
microinsurance agent?
a) 10th standard pass
b) 12th standard pass
c) Graduate degree
d) No specific educational qualification required