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NISM Series X-B · Chapter 1: Basics of Insurance

बीमा की मूल बातें · NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination

~11 of 150 marks 90 MCQs + 6 case studies · 150 marks · 3 hours · 60% to pass · −25% of a question's marks per wrong answer 40 practice questions in our bank + 2 case studies

What this chapter covers

Why insurance exists and how it works: pooling of risk, the requirements of an insurable risk, utmost good faith and insurable interest, concepts such as indemnity, contribution, co-pay, deductibles, beneficial nominees, Section 45 and the health moratorium, the steps in insurance planning, and the regulations on health insurance, ULIPs and insurance intermediaries.

बीमा की मूल बातें — जोखिम का पूलिंग, बीमा योग्य जोखिम, परम सद्भाव व बीमा योग्य हित, को-पे, डिडक्टिबल और IRDAI नियम।

What to master before the exam

Exam tip: Module 7 (Chapters 1–3) carries 25 marks. Expect claim arithmetic — deductible, co-pay and contribution — and principle questions on insurable interest, Section 45 and the beneficial nominee. The IRDAI intermediary limits and ULIP rules are quick one-mark facts.

Sample questions from this chapter

Five of the 40 questions in our free bank. Open the answer to see the explanation — every question in the mock test has one, in English and Hindi.

Question 1
Which of the following characteristics are required for a risk to be insurable?
किसी जोखिम के बीमा-योग्य होने के लिए निम्नलिखित में से कौन-सी विशेषताएँ आवश्यक हैं?
  1. The risk does not involve any prospect of gainजोखिम में लाभ की कोई संभावना नहीं होती
  2. The loss incurred should be definite and quantifiableहुई हानि निश्चित और मापने योग्य होनी चाहिए
  3. The loss must be accidental and uncertainहानि आकस्मिक और अनिश्चित होनी चाहिए
  4. All the options givenदिए गए सभी विकल्प
Show answer & explanation
Answer: D — All the options given
The workbook lists the requirements of an insurable risk: a large number of exposure units, insurable interest, accidental and unintentional loss, determinable and measurable loss, no prospect of gain or profit (pure risk), calculable chance of loss and an economically feasible premium. All three statements are therefore required.
workbook बीमा-योग्य जोखिम की आवश्यकताएँ बताता है: बड़ी संख्या में exposure units, बीमा-योग्य हित (insurable interest), आकस्मिक और अनचाही हानि, निर्धारित और मापने योग्य हानि, लाभ की कोई संभावना नहीं (शुद्ध जोखिम), हानि की संभावना की गणना संभव, और आर्थिक रूप से व्यवहार्य प्रीमियम। इसलिए तीनों कथन आवश्यक हैं।
Question 2
In a/an ________ insurance plan, the exact losses incurred by an insured are not ascertainable or are difficult to ascertain.
________ बीमा योजना में बीमित व्यक्ति को हुई वास्तविक हानि का पता नहीं लगाया जा सकता या उसका पता लगाना कठिन होता है।
  1. Indemnityक्षतिपूर्ति (Indemnity)
  2. Defined benefitनिर्धारित लाभ (Defined benefit)
  3. Reimbursement (Mediclaim)प्रतिपूर्ति (Mediclaim)
  4. Propertyसंपत्ति (Property)
Show answer & explanation
Answer: B — Defined benefit
A defined benefit plan pays a fixed sum, based on a pre-estimated loss, where it is difficult to ascertain the exact actual loss (e.g. life insurance, critical illness) or where the loss is too small to be worth ascertaining (daily hospital cash). Indemnity policies such as Mediclaim, property and car insurance require determination of the actual loss.
Defined benefit योजना पूर्व-अनुमानित हानि के आधार पर एक निश्चित राशि देती है, जहाँ वास्तविक हानि का सटीक पता लगाना कठिन हो (जैसे जीवन बीमा, critical illness) या हानि इतनी छोटी हो कि उसका निर्धारण करना सार्थक न हो (daily hospital cash)। Mediclaim, संपत्ति और कार बीमा जैसी indemnity पॉलिसियों में वास्तविक हानि का निर्धारण आवश्यक होता है।
Question 3
When a bank becomes the corporate agent of an insurance company it is referred to as a ________.
जब कोई बैंक किसी बीमा कंपनी का corporate agent बन जाता है, तो इसे ________ कहा जाता है।
  1. Direct Insurance BrokerDirect Insurance Broker (प्रत्यक्ष बीमा ब्रोकर)
  2. Re-insurance BrokerRe-insurance Broker (पुनर्बीमा ब्रोकर)
  3. Bancassurance arrangementBancassurance व्यवस्था
  4. Insurance Web AggregatorInsurance Web Aggregator (बीमा वेब एग्रीगेटर)
Show answer & explanation
Answer: C — Bancassurance arrangement
The workbook states that when a bank becomes the corporate agent of an insurance company it is referred to as a bancassurance arrangement or partnership.
workbook के अनुसार जब कोई बैंक किसी बीमा कंपनी का corporate agent बनता है तो इसे bancassurance व्यवस्था या साझेदारी कहा जाता है।
Question 4
The lock-in period for a unit-linked insurance policy (ULIP) is ________ to reflect the long-term, protection function of the policy.
पॉलिसी के दीर्घकालिक, सुरक्षा कार्य को दर्शाने के लिए unit-linked insurance policy (ULIP) की lock-in अवधि ________ है।
  1. 3 years3 वर्ष
  2. 5 years5 वर्ष
  3. 7 years7 वर्ष
  4. 10 years10 वर्ष
Show answer & explanation
Answer: B — 5 years
Under the ULIP regulations summarised in the workbook, the lock-in period is 5 years to reflect the long-term, protection function of the policy; no surrender charges apply after 5 policy years.
workbook में दिए ULIP नियमों के अनुसार, पॉलिसी के दीर्घकालिक, सुरक्षा कार्य को दर्शाने के लिए lock-in अवधि 5 वर्ष है; 5 पॉलिसी वर्षों के बाद कोई surrender charge नहीं लगता।
Question 5
In the workbook’s merchant-ship example, 100 merchants each send a ship, 2 ships are lost on average every month and the loss per ship is Rs. 10,00,000. If only 40 merchants agree to pay into the insurance pool, the premium per participating merchant rises to:
workbook के व्यापारी-जहाज़ उदाहरण में 100 व्यापारी एक-एक जहाज़ भेजते हैं, औसतन हर महीने 2 जहाज़ खो जाते हैं और प्रति जहाज़ हानि रु. 10,00,000 है। यदि केवल 40 व्यापारी बीमा पूल में भुगतान करने को सहमत हों, तो प्रत्येक भाग लेने वाले व्यापारी का प्रीमियम बढ़कर कितना हो जाएगा?
  1. Rs. 20,000रु. 20,000
  2. Rs. 25,000रु. 25,000
  3. Rs. 40,000रु. 40,000
  4. Rs. 50,000रु. 50,000
Show answer & explanation
Answer: D — Rs. 50,000
Expected loss = 2 × Rs. 10,00,000 = Rs. 20,00,000. Shared by 40 merchants: 20,00,000 / 40 = Rs. 50,000, against Rs. 20,000 if all 100 participate. This illustrates the requirement of a large number of exposure units.
अपेक्षित हानि = 2 × रु. 10,00,000 = रु. 20,00,000। 40 व्यापारियों में बाँटने पर: 20,00,000 / 40 = रु. 50,000, जबकि सभी 100 के भाग लेने पर यह रु. 20,000 होता। यह बड़ी संख्या में exposure units की आवश्यकता को दर्शाता है।
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All X-B chapters

1. Basics of Insurance · 11 marks2. Life Insurance Products · 9 marks3. Non-Life Insurance Products · 5 marks4. Retirement Planning Basics · 5 marks5. Retirement Products · 19 marks6. Miscellaneous Aspects of Retirement Planning · 6 marks7. Concepts in Taxation · 4 marks8. Capital Gains · 2 marks9. Income from Other Sources · 1 marks10. Taxation of Debt Products · 2 marks11. Taxation of Equity Products · 4 marks12. Taxation of Other Products · 4 marks13. Tax Provisions for Special Cases · 3 marks14. Basics of Estate Planning · 5 marks15. Tools for Estate Planning · 15 marks16. Basics of Behavioural Finance · 7 marks17. Behavioural Finance in Practice · 3 marks18. Risk Profiling for Investors · 12 marks19. Comparison of Products across Categories · 20 marks20. Case Studies · 13 marks
Chapter 2: Life Insurance Products →

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