Mixed English Questions for Mains Exam — Set 188

Directions(1-6): Read the following passage carefully and answer the questions that follow.

Insurance regulator IRDAI has allowed distribution of all micro-insurance products through point-of-sales (PoS), with an aim further increase insurance penetration in the country.

The Insurance Regulatory and Development Authority of India (IRDAI) has created a special category of insurance policies called micro-insurance policies to promote insurance coverage among economically vulnerable sections of society. A micro-insurance policy is a general or life insurance policy with a sum assured of Rs 50,000 or less.

Agreeing to the suggestions of insurance companies, IRDAI in a circular has done away with the practice of pre-fixing the word ‘PoS’ on life, general and health products sold through PoS. The regulator said it has received representations from insurance companies requesting to do away with the prefix ‘POS’ in the product name.

Insurers made representations to change the norms that made it mandatory for every policy sold through the ‘Point of Sales Persons’ to be separately identified and pre-fixed by the name ‘POS’. IRDAI said the requirement was to identify the person involved in the sales process.

The IRDAI (Protection of Policyholder’s Interest) Regulations, 2017, under the matters to be stated in life, general and health insurance policy, makes it mandatory to give the details of the person involved in the sales process. “By virtue of this requirement, the need to have the prefix ‘PoS’ becomes redundant as the insurance policy itself will carry the details of the person selling such a policy,” the regulator said. The Authority, “hereby, discontinues requirements” of using the word ‘PoS’ prefixed before the PoS product name for life, general and health products.

Similarly, IRDAI said it has been observed that advantages such as higher insurance penetration, lower prices, increased choice to customers, which would otherwise accrue to the policyholder by making micro-insurance products available through POS channel are being lost. “Therefore, the Authority after reviewing the position, hereby allows all Micro Insurance products of Life, General and Health insurance to be distributed through the POS also,” the circular said.

On the manner of dealing with cases of health/personal accident (PA) policies where sum insured crosses the limit specified under the POS guidelines, IRDAI said the sponsoring entity is allowed to recognise such policies as being sourced by the POS and pay the fees to the POS.

  1. Which among the following is /are correct regarding the Micro Insurance policies issued by insurance companies in India?

    I. Micro Insurance policies are meant to give coverage to people who belong to the underprivileged section of the society
    II. Micro Insurance policies are such that the sum assured in these policies is Rs 50000 or less than that.
    III. Micro Insurance policies are only issued by banks and insurance companies because others are not authorized by IRDAI to issue such policies

    Both I and II
    Only II
    Only III
    Both I and III
    All I, II and III
    Option A
    Refer to, “The Insurance Regulatory and Development Authority of India (IRDAI) has created a special category of insurance policies called micro-insurance policies to promote insurance coverage among economically vulnerable sections of society. A micro-insurance policy is a general or life insurance policy with a sum assured of Rs 50,000 or less.”

     

  2. Which among the following correctly explains the reason of the new guidelines of the IRDAI regarding the withdrawal of the prefix POS in the names of the insurance policies sold by POS?
    IRDAI is not authorized to sell policies online since it is the regulating body of the insurance industry in the country but it also needs to keep a tab on the authorized intermediaries.
    IRDAI made it mandatory to add the prefix of the policy nature in any policy sold by the insurance companies in India.
    The IRDAI now possesses the information regarding the point of sales persons selling the insurance policies in India and it does not make any sense to identify such policies by name.
    The IRDAI has made it mandatory that all the policies issued by the micro insurance agents will be sold through point of sales persons only.
    None of the above
    Option C
    Refer to, “The IRDAI (Protection of Policyholder’s Interest) Regulations, 2017, under the matters to be stated in life, general and health insurance policy, makes it mandatory to give the details of the person involved in the sales process. “By virtue of this requirement, the need to have the prefix ‘PoS’ becomes redundant as the insurance policy itself will carry the details of the person selling such a policy,”

     

  3. Which among the following is correct regarding the objective of IRDAI to allow the distribution of micro insurance policies through the POS delivery channel?
    POS channel is the most popular distribution network in the country and that is why most of the people are relying on this only.
    Banks and insurance companies are very much interested in ensuring that the micro insurance products sold in India are not the global ones.
    The IRDAI has understood that micro insurance policies are not popular as the normal policies and they should be done away with.
    The IRDAI is interested in extension of insurance coverage to more and more people in the country.
    Both C and D
    Option D

     

  4. Which among the following is/are correct as per the information given the passage?

    I. The POS channel can also be used to distribute policies of insurance beyond the permissible limit of coverage.
    II. The insurance companies are mainly responsible behind the decision of the IRDAI to remove the prefix ‘POS’ from the names of the insurance products.
    III. The POS channel of distribution of insurance products will be used by IRDAI only and no insurance company will be able to use it

    Both II and III
    Both I and II
    Both I and III
    Only II
    All I, II and III
    Option B
    Refer to, “On the manner of dealing with cases of health/personal accident (PA) policies where sum insured crosses the limit specified under the POS guidelines, IRDAI said the sponsoring entity is allowed to recognise such policies as being sourced by the POS and pay the fees to the POS.”

    Refer to, “Insurers made representations to change the norms that made it mandatory for every policy sold through the ‘Point of Sales Persons’ to be separately identified and pre-fixed by the name ‘POS’.”

     

  5. Which among the following is/are correct regarding the benefits that were not there before the decision of the IRDAI allowing the micro insurance products to be sold through the POS channel?
    There was fewer choices available to the policyholders to choose from the insurance products available in the market.
    The policyholders were not able to get benefitted from lower and competitive premiums offered by insurance companies.
    The insurance companies were not after the policyholders to take their policies without making any kind of customizations on the part of the insurance companies.
    Both A and B
    Both B and C
    Option D
    Refer to, “Similarly, IRDAI said it has been observed that advantages such as higher insurance penetration, lower prices, increased choice to customers, which would otherwise accrue to the policyholder by making micro-insurance products available through POS channel are being lost. “Therefore, the Authority after reviewing the position, hereby allows all Micro Insurance products of Life, General and Health insurance to be distributed through the POS also,” the circular said.”

     

  6. Which among the following is opposite in meaning to the word ”Mandatory” as used in the passage?
    Voluntary
    Free
    Licensed
    Demystified
    None of the above
    Option A

     

  7. Directions(7-10): In the given question, a part of the sentence is printed in bold. Below the sentence alternatives to the bold part are given at (A), (B), (C) and (D) which may help improve the sentence. Choose the correct alternative. In case the given sentence is correct, your answer is (E), i.e., ‘No correction required’.

  8. The Pagodas should ideally be visited early in the morning or in the evening because walking barefoot on the marble paths in the (afternoon heat will be unbearable).
    afternoon heat would be unbearable
    afternoon heat might be unbearable
    afternoon heat may unbearable
    afternoon heat will unbearable
    No correction required
    Option A

     

  9. The (slaughter of the animals have brought) hundreds of animal activists together to protest.
    slaughter of the animals has brought
    slaughter of the animals have bought
    slaughter of the animal brings
    slaughter of the animals are bringing
    No correction required
    Option A

     

  10. Another innovation has been made in the form of a bioswale rain garden (which is not only ornamental but also) collects rainwater from the pathways to recharge the groundwater.
    which is neither ornamental nor
    which is neither just ornamental but nor
    which are not just ornamental but also
    which are neither ornamental nor
    No correction required
    Option E

     

  11. The couple (disclosed it’s intentions of not getting married) before the new year since they wanted to take more time in building the relationship stronger.
    disclosed their intentions of not getting married
    disclosed its intentions of not getting married
    disclose it’s intentions of not getting married
    had disclosed their intentions of not getting married
    No correction required
    Option A

     

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