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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Explain the difference between Lfie Insurance and General Insurance. |
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Answer» Difference between Life Insurance and General Insurance Whereas, General Insurance is a contract of indemnity which promises to make good your losses. In Life Insurance, the sum assured along with benefits is paid either on the event of death of the policy holder or on maturity of the policy. |
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| 2. |
What is e-banking? What are the advantages of e-banking? |
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Answer» E-banking refers to electronic banking. It’s like e-business in the banking industry. Electronic banking is also known as “Virtual Banking” or “Online Banking”. Electronic banking is based on banking based on information technology. Under this I.T system, banking services are delivered through a computer-controlled system. This system involves a direct interface with customers. Customers do not have to visit the bank’s facilities. The main advantages of electronic banking are: – 1.)The cost of operation per unit of services is lower for banks. 2.)Offers convenience to customers since they are not required to go to the bank’s facilities. 3.)There is a very low incidence of errors. 4.)The customer can obtain funds at any time from ATMs. 5.)Credit cards and debit cards allow customers to get discounts at points of sale. 6.)The customer can easily transfer the funds from one place to another place electronically. |
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| 3. |
DTH services are provided by _______A. Transport companiesB. BanksC. Cellular companiesD. none of these |
| Answer» Correct Answer - c.) Cellular companies | |
| 4. |
Explain different type of Posta services. |
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Answer» Priority Mail Express: Anything mailable, letters, merchandise. Priority Mail:Anything mailable, bills, invoices, personal correspondence, merchandise. First-Class Mail: Anything mailable, bills, invoices, personal correspondence, merchandise. Periodicals: Newsletters, magazines; (formal authorization needed). USPS Marketing Mail: Advertisements, circulars, newsletters, small parcels, merchandise. Package Services and USPS Retail Ground: Merchandise, catalogs, printed material, computer media |
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| 5. |
Write a detailed note on verious facilities offered by Indian postal department. |
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Answer» The Indian Post and Telegraph Department provides various postal services across India. For providing these services, the whole country has been divided into 22 postal circles. These circles manage the day-to-day functioning of the various head post offices, sub-post offices and branch post offices. Through their regional and divisional level arrangements, the various facilities provided by the postal department are broadly categorised into : 1.Financial facilities : These facilities are provided through the post office’s savings schemes like Public Provident Fund (PPF), Kisan Vikas Patra and National Saving Certificates in addition to normal retail banking functions of monthly income schemes, recurring deposits, savings account, time deposits and money order facility. 2.Mail facilities : Mail services consist of parcel facilities i.e. transmission of articles from one place to another, registration facility to provide security of the transmitted articles and insurance facility to provide insurance cover for all risks in the course of transmission by post. 3.Allied Postal Services: The postal department also offers the following allied facilities : (i)Media Post: Business enterprises can advertise their brands through postcards, envelops, etc. (ii)Greeting Post : Greeting cards can be sent through post offices to people on different occasions. (iii)Speed Post: It facilitates speedy transmission of articles to over 1,000 destinations in India and 97 major countries across the globe. (iv)Direct Post : Direct advertising can be done through addressed and unaddressed direct post. (v)E-Bill Post: Post offices collect bill payments on behalf of BSNL, Airtel and other organisations. (vi)Passport Facilities: The Postal department has entered into partnership with the Ministry of external affairs. As a result, post offices provide passport application forms and also accept filled up forms. (vii)International Money Transfer : The Postal department has collaborated with Western Union financial services, USA, for remittance of money from 185 countries to India. |
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| 6. |
Describe verious types of insurance and examine the nature of risks protectec by each type of insurance. |
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Answer» Various types of insurance exist by virtue of practice of insurance companies and the influence of legal enactments controlling the insurance business. Broadly speaking, insurance may be classified as follows: 1.Life insurance : Life insurance may be defined as a contract in which the insurer in consideration of a certain premium, either in a lump-sum or by other periodical payments, agrees to pay to the assured, or to the person for whose benefit the policy is taken, the assured sum of money on the happening of a specified event contingent on the human life or at the expiry of a certain period. The risk may be of an event which is certain that is death. The other risk may be living too long in which an individual may become too old to earn, i.e. retirement. In this case also, the earnings will decline or end. Under such circumstances, individuals seek protection against these risks and life insurance companies offer protection against such risks. 2.Fire insurance : Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period up to the amount specified in the policy. Usually, the fire insurance policy is for a period of one year after which it is to be renewed from time to time. The premium may be paid either in lump-sum or instalments. The risk covered by a fire insurance contract is the loss resulting from fire or some other cause and which is the proximate cause of the loss. If overheating without ignition causes damage, it will not be regarded as a fire insurance and the loss will not be recoverable from the insurer. 3.Marine insurance : A marine insurance contract is an agreement whereby the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses. Marine insurance provides protection against loss by marine perils or perils of the sea. |
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| 7. |
Write a note on verious telecom services available for enhancing business. |
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Answer» There are various type of telecom services which facilitate business. These are (i) Cellular Mobile Services These include all types of mobile telecom services including voice and non-voice messages, data services and PCO (Public Cell Operator) services utilising any type of network equipment within their services area. (ii) Radio Paging Services It is a means of transmitting information to persons even when they have mobile. It is an affordable one way information broadcasting solution which includes tone only, numeric only and alpha/numeric paging. (iii) Fixed Line Services These include all types of fixed services including voice and non-voice messages and data services used to establish linkages for long distance traffic utilising any type of network equipment connected through fibre optic cables. (iv) Cable Services These include linkages and switched services within a licensed area of operation to operate media services which are essentially one way entertainment related services. (v) VSAT (Very Small Aperture Terminal) Services They are satellite-based communications services which are highly flexible, uninterrupted and reliable communication solution for applications such as online newspapers and tele-education in both urban and rural areas. (vi) DTH (Direct to Home) Services They are satellite based media service provided by cellular companies. One can receive media services directly through a satellite with the help of a small dish antenna and a set-top box. |
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| 8. |
It is a type of saving bank account in which excess of a particular limit gets automatically transferred to fixed deposit account.A. Current deposits accountB. Recurring depositsC. Multiple option deposit accountD. None of these |
| Answer» Correct Answer - C | |
| 9. |
Define service sector. |
| Answer» The service sector is the third of the three economic sectors of the three-sector theory. The others are the secondary sector, and the primary sector. The service sector consists of the production of services instead of end products. Services include attention, advice, access, experience, and affective labor. | |
| 10. |
Overdraft facility is available only onA. Current account depositsB. Saving account depositsC. Recurrring depositsD. Fixed deposits |
| Answer» Correct Answer - A | |
| 11. |
The bank does not pay any interest on saving account deposit. True/False ? Give reasons. |
| Answer» Correct Answer - False : The bank pays interest on savings account deposits at a nominal rate, say 4% p.a. The bank does not pay interest on current account deposits. | |
| 12. |
Who can get an overdraft from a bank ? |
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Answer» Account holder An overdraft is an extension of credit from a lending institution that is granted when an account reaches zero. The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal. |
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| 13. |
Given one point of difference between private sector banks and public sector banks. |
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Answer» Given below are the points that explain the differences between public sector and private sector banks: Public Sector Banks are those financial institutions where maximum shares are held by the government. On the other hand, Private Sector Banks are the ones where the majority stake is with private shareholders. |
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| 14. |
Mini amount for RTGS is :A. 25000B. 2,00,000C. 50000D. 1,00,000 |
| Answer» The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 lakh. The maximum limit is Rs 10 lakh per day. | |
| 15. |
A husband took the life insurance policy of his wife. After one year the couple got divorced and later on after two years the wife died. Will husband get compensation from the insurance company ? |
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Answer» The husband will get compensation from the insurance company because in case of life insurance policy the insurable interset must be present at the time of taking policy. If husband is making regular payment of premium even after divorce, then he will get the compensation for the death of his wife even after divorce. |
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| 16. |
"It is binding on both the parties of insurance to disclose all material facts about the subject matter of purposed insurance. "Which principle of insurance is associated with this? |
| Answer» Principle of good faith. | |
| 17. |
"The isured must have an Interest in the subject matter of insurance. "Which priciple of insurance is related to this statement ? |
| Answer» Principle of Insurable Interest. | |
| 18. |
A transport company took an accident insurance policy for all its vehicles. A truck of that company carrying oranges met with an accident. Due to that accident three was no damager to oranges but oranges were unloading from that truck and reloaded to another . Due to time wastage in unloading and reloading, the oranges got spoiled. Will the company get compensation for loss of oranges from the insurance company or not ? Which principle is related with this case ? Explain that principle of insurance. |
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Answer» The company will not get compensation because oranges were not spoiled in accident. The oranges got spoiled due to delay in unloading an loading. This case is related to the Principle of Cause Proxima. (Explain the principle of Causa Proxima, Refer to Page No. 156 point 6.) |
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| 19. |
"The insured must take care of his goods and other, for which insurance is being taken as he was taking insurance policy. "To which principle of insurance is the related ? |
| Answer» Principle of mitigation of loss | |
| 20. |
Ashish took a marine policy to cover the goods exported by him. Under the policy goods have been insured against damage likely to be cause by sea-water. During the voyage a hole was caused in the bottom of the ship. Through this hole sea water entered into the ship which damaged the goods insured. Can Ashish claim compensation for the loss ? |
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Answer» Yes, Ashish can claim compensation for the loss from the insurance company. Reason : In this case there are two causes of the mishap, which has occurred. Firt, the hole caused in the bottom of the ship and second, seepage of sea water into the ship. The nearest cause of the damage caused to the goods is the seepage of the water, the hole in the bottom of the ship is the remote cause. Therefore, Ashish must be compensated for the loss caused by the damage to the goods covered by the policy. |
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| 21. |
Shubham has taken a loan from Saurabh against the security of his factory. Can Saurabh take a fire insurance policy of that factory ? |
| Answer» Yes, Saurabh ( the lender) can take a fire insurance policy of the factory though he is not its owner, because he has financial interest in the factory premises. (Principle of insurable interest) | |
| 22. |
Rishabh insured his factory for ₹ 5 lakh against fire. Due to fire, he suffered a loss of ₹ 2 lakh. How much amount he can recover from the insurance company ? Why ? |
| Answer» Rishabh can recover ₹ 2 lakh from the insurance company (not the policy amount, that is, ₹ 5 lakh) since he has suffered a loss of ₹ 2 lakh only. The purpose of insurance is to compensate for loss and not to earn profit. (Principle of indemnity) | |
| 23. |
In fire and marine insurance, the insured event may or may not happen. True/False |
| Answer» Correct Answer - True : The events like destructions by fire or loss at sea may not happen and there may be no claim. There is an element of uncertainly. | |
| 24. |
Aditya gets his house insured against fire of ₹ 10 lakh with insurer A and for ₹ 5 lakh with insurer B. A loss of ₹ 3 lakh occurred. How much compensation can he claim from A and B ? Why ? |
| Answer» Aditya can claim compensation for loss by fire (₹ 3 lakh) from the insurers A and B in the ratio of `2:1` (10 lakh `:` 5lakh), i.e., ₹ 2 lakh from insurer A and ₹ 1 lakh from the insurer B. This is because of the principle of contribution. According to the principle of contribution, if a person has taken more than one insurance policy for the same risk, then all the insurers will contribute the amount of loss in proportion to the amount assured by each of them and compensate him for the actual amount of loss. Separately, the insured cannot clain total loss from each insurer because he has no right to recover more than the full amount of his actual loss. | |
| 25. |
Ragini has insured her house for ₹ 5,00, 000 against the fire. There is a fire and Ragini suffers a loss of ₹ 1,00,000. How much amount she can recover from the insurer ? |
| Answer» Correct Answer - `₹` 1,00,000 | |