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Insurance Interview Questions & Answers - Learning Mode

Insurance Interview Questions & Answers - Learning Mode

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An entity which provides insurance is known as an insurer, insurance company, or insurance carrier. Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as the premium.

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Subcategories for Insurance Interview Questions & Answers - Learning Mode

Following are sub categories for which Interview Questions & Answers are available under Insurance Interview Questions & Answers - Learning Mode. Please select the appropriate sub-category:-

Auto / Vehicle / Motor Insurance Interview Questions & Answers (20) Learning Mode | Exam Mode

Employee Deposit Linked Insurance Interview Questions & Answers (10) Learning Mode | Exam Mode

Endowment Plans Interview Questions & Answers (5) Learning Mode | Exam Mode

Health Insurance Interview Questions & Answers (50) Learning Mode | Exam Mode

Home Insurance Interview Questions & Answers (8) Learning Mode | Exam Mode

Money Back Policy Interview Questions & Answers (3) Learning Mode | Exam Mode

Term Life Insurance Interview Questions & Answers (29) Learning Mode | Exam Mode

Travel Insurance Interview Questions & Answers (10) Learning Mode | Exam Mode

Unit Linked Insurance Plans (ULIP) Interview Questions & Answers (5) Learning Mode | Exam Mode


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Insurance Interview Questions & Answers - Learning Mode
Try Insurance Interview Questions & Answers - Exam Mode
Question: Is it advisable to cancel my existing policy and replace it with another?

Answer: Ideally, you should not replace any existing policy with a new one as many benefits are provided only after few years of taking the policy.

Still, you may replace the existing insurance policy under following situations:-
1. If the existing insurance cost is higher than the similar product of same company or the other company in market.

2. If the replacement cost of policy is lower than the benefits earned after shifting to other arrangement then you can look forward for the a Source:
Question: What is the internal rate of return when it comes to insurance policy?

Answer: Internal Rate of Return or IRR is the barometer of checking returns offered by an insurance policy. IRR calculates the percentage return over a specific period of an investment. While calculating IRR, any investment or premium paid is entered as a negative value while any gains from the insurance policy including maturity value or inflow of any percentage of money in case of a money back policy is listed as a positive quantity. IRR can calculate returns depending on the amount invested in the in Source:
Question: How can I find out if the insurance agent is authorized to sell life insurance policy?

Answer: It is difficult to do. Typically all insurance agents are supposed to pass the exam conducted by insurance companies, get their code, and then they can sell insurance to customers.

However, many insurance agents may employ others to sell insurance on their behalf. When the policy is bought, it certainly contains the code of the genuine insurance agent. However, it is difficult to verify whether the person selling you insurance has got the code or not unless you wish to see his certificate Source:
Question: Has there been any change in service tax for insurance premium after budget?

Answer: There have been two announcements with regards to Service tax on insurance premiums in budget 2016-17. The composite rate of service tax on single premium annuity policies is reduced from 3.5% to 1.4% of the premium charged.

Service tax has also been exempted on general insurance provided under ?Niramaya Health Insurance Scheme'. However all remaining life insurance policies will continue to attract service tax for premium payment. Source:
Question: If I start a company with a new product can I get my product insured for any quality issue?

Answer: If as a business owner you develop a product and someone uses your product and faces
some problem or a medical issue, you can be legally sued for selling a wrong product. What you can do is to opt for product liability will safeguard you against any such lawsuits filed against your or your business.
Question: Will I get full refund of the premium paid, if I cancel my policy within the free lock period?

Answer: Yes, you should get your amount back if you cancel the policy within the free lock period. However, please make sure that you cancel that within the free lock period and have proof of cancelling with the same. Source:
Question: How do I make a claim of my insurance policy? How long will it take to get the final settlement?

Answer: There are two types of claim. First is when you claim the sum on maturity and the other is when you make the claim is because of death of the insured.

For claiming the sum at the maturity, you need to provide documents such as policy number, and fill up claim form. This is easy and the insurer will pay you either by cheque or directly transfer to your account.

For claiming the sum assured because of death, you have to submit death certificate, post-mortem report (if any), policy nu Source:
Question: Can I buy a family floater insurance plan for my in-laws?

Answer: Family floater plans are available only for your immediate family including your spouse and kids. You cannot include your parents or in-laws in a family protection plan in most cases.
Check with the insurance company before hand if they offer a family floater plan
for in laws. Source:
Question: Who can apply to become a TPA with an insurance company?

Answer: The insurance company selects its third party administrator or TPA as per various IRDA norms including some insurance company centric norms. As per IRDA guidelines TPA is required to maintain minimum paid-up equity share capital of Rs 4 crore with at least one director having a MBBS degree. The insurance company can change its TPA if it is under performs as per their agreement with the selected TPA. Source:
Question: What happens when I fail to make the required premium payments on the due date?

Answer: It is extremely important to make payment on time. In case the insured fails to do it on time, the company gives another 15 to 30 days to make the payment. This is called grace period. If the payment mode is monthly, the grace period is 15 days. For other mode, the grace period is 30 days.

Suppose the insurer fails to pay even in the grace period, you can still revive the policy after fulfilling few conditions. For example, you might be required to go through medical test once again, you Source:
Question: What is Incurred Claim Ratio in insurance?

Answer: An incurred claim ratio is the ratio of net claims incurred and the total premium earned by the company. An ICR of 80% means that the health insurance company is spending Rs. 80 for every Rs. 100 it charges as premium. The company is therefore earning a profit of Rs. 20. Incurred claim ratio when it exceeds 100% mark shows the company is making losses in their business. Source:
Question: What is underwriting in insurance?

Answer: Underwriting describes the process of assessing risk for life insurance companies by evaluating the risk and exposures of potential insurance clients. Every insurance company has its own set of underwriting guidelines which they use to determine to accept the risk of insurance. Source:
Question: Why do different insurance companies show different benefit illustration on their website or product brochures?

Answer: The new IRDA norms which effective from December 1, 2015 has now made sure all insurance companies are following the same benefit illustration example. Insurance companies are now made mandatory to show the benefit illustration by showing a gross return rate of both 4% and 8% instead of 6% and 10%. Also every insurance policy will now have a benefit illustration chart clearly defining what returns to expect and which of the returns will be guaranteed and which ones are indicative. Source:
Question: Is TDS now being deducted on insurance policies?

Answer: The government introduced the changes in TDS for insurance policies as per the New Finance Bill of 2014. A new section 194 DA has been introduced in the income tax Act of 1961 for this effect. As a result tax is deducted at source on payouts for all insurance policies exceeding Rs. 1 Lakhs in a financial year which are not exempted for income tax under section 10(10D). The quantum of TDS deduction is fixed at 2 % on the total sum to be paid to the policyholder with a valid and registered PAN num Source:
Question: How do I convert my existing paper insurance policy to electronic form?

Answer: To convert your existing paper insurance policy to its electronic form, you will have to open an eIA account with the approved insurance repository. Request forms are available with all insurance repositories to open a new eIA account for policy conversion to digitized format. You can also download the form from the official website of the insurance repository. Once you have the form, fill up and submit the same to the insurance company or the insurance repository along with supporting documents Source:
Question: Does CSR (Claim Settlement Ratio) of an insurance company include wrong or fraudulent claims too?

Answer: Yes, claim settlement ratio covers all the claims filed in the annual year. These may include claims that were filed in wrongly or fraudulent claims. It is for this very reason that CSR is only a yardstick to select your insurance company and should be used judiciously and by taking into
account for such fraud claims. Source:
Question: What is the difference between sum assured and sum insured?

Answer: Sum assured is a pre defined benefit that the insurance company pays to the policyholder when the insured event takes place. For example sum assured is the amount that the insurance company promises to pay the nominee in the event of death of the policyholder. On the other hand, non-life insurance policies like health and vehicle works on the principle of indemnity. Indemnity means compensation for any damage, loss or injury suffered. So these policies cover the losses on account of any damage t Source:
Question: How can I check the claim settlement ratio record of any insurance company?

Answer: Before buying any insurance product, it is always a good idea to check the claim settlement ratio of the insurance company. Instead of relying on low premiums or world of mouth popularity, the claim settlement ratio gives the exact break up of number of claims filed with the company in that financial year and number of claims approved or rejected. A company with a higher CSR record is more likely to honor claims compared to a home insurance company with lower CSR ratio. Insurance watchdog IRDA r Source:


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