Sample Questions

IC 11 Practice of General Insurance Mock Tests — 5 random MCQs with answers & explanations

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These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 Which committee, led by a former RBI Governor, provided the roadmap for liberalising the Indian insurance market?

  • A. Dr. Manmohan Singh Committee
  • B. Bimal Jalan Committee
  • C. R. N. Malhotra Committee Correct Answer
  • D. C Rangarajan Committee
Explanation:
The R. N. Malhotra Committee recommendations in the late 1990s were the foundation for opening the insurance sector to private and foreign competition.

Marks: 1

Q2 In insurance accounting, what does the term "Reserves" specifically represent?

  • A. Extra profit for shareholders
  • B. Funds set aside for future expansions
  • C. Estimates kept aside to pay for future liabilities and claims Correct Answer
  • D. Money invested in the stock market
Explanation:
Since claims are unpredictable, insurers must keep money ready to meet those future costs.

Marks: 1

Q3 Which of the following is generally excluded and cannot be covered under a Cyber Liability policy?

  • A. Hacking losses
  • B. Viruses spread by the insured to others
  • C. Intentionally spreading malicious lies about third parties Correct Answer
  • D. System access failures
Explanation:
Insurance does not cover deliberate or intentional wrongdoings like spreading lies.

Marks: 1

Q4 Which of these is technically not a "peril" but is still covered under the Institute Cargo Clauses (ICC-C)?

  • A. Grounding Correct Answer
  • B. Capsizing
  • C. Explosion
  • D. Sinking
Explanation:
Under the ICC-C marine rules, "grounding" (the ship hitting the seafloor) is specifically included for coverage, even though it is often defined differently from other perils.

Marks: 1

Q5 During the 1972 nationalisation process, how many separate insurance companies were merged to form the four Public Sector Undertakings (PSUs)?

  • A. 107 Correct Answer
  • B. 57
  • C. 145
  • D. 70
Explanation:
To streamline the industry, 107 different Indian and foreign insurance companies were combined into four major government-owned entities.

Marks: 1

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