7 September 2026

Insurance purchasing advice

While the topic provides practical consumer advice on insurance, it relates to the regulatory role of the IRDAI and government interventions in the financial sector, serving as useful context for questions on financial literacy or regulatory oversight.

Questions

1. Explain the relationship between insurance premium pricing and policy coverage. How does the pursuit of premium discounts impact the financial security of the insured? 150 words
   Attempt this — 150 words in 8 min

   0 / 150 words 8:00 Reset
2. Financial inclusion in India is not merely about access to insurance products but also about the quality and transparency of coverage. Discuss the role of regulatory oversight in ensuring that policyholders are protected from information asymmetry in the insurance market. 250 words
   Attempt this — 250 words in 11 min

   0 / 250 words 11:00 Reset

Prelims

1. Which of the following best describes the impact of a 'No-Claim Bonus' (NCB) in motor insurance?

   1. A It is a discount on the premium for not making a claim during the policy period.
   2. B It is a fixed amount paid by the insurer to cover third-party damages.
   3. C It is a penalty charged by insurers for frequent vehicle repairs.
   4. D It is a mandatory government subsidy provided to all vehicle owners.

2. Since 2021, what has been the regulatory requirement regarding flood cover in home insurance policies in India?

   1. A It is inbuilt with a single bundled premium.
   2. B It is only available for properties located in coastal zones.
   3. C It must be purchased as a separate, optional add-on.
   4. D It is strictly prohibited due to high risk assessment.