IC 02 Chap 5

Avni, Avyaan, and Alisha are planning a group adventure! What is the main characteristic of group insurance?

• A) It provides individual policies to each member.

• B) It covers only a specific category of individuals.

• C) It is issued under a master policy to a group of people.

• D) It requires medical checkups for all members.

• E) None of the above

Answer explanation

Group insurance is issued under a master policy to a group of people, not individual policies like in option A.

How does Aarav's lucky number determine the insurance cover amount in the EDLI scheme?

• A) It is based on the employee's monthly salary.

• B) It is based on the duration of the employee's service.

• C) It is based on the balance in the employee's provident fund account.

• D) It is a fixed amount for all employees.

• E) None of the above.

Answer explanation

The insurance cover amount in the EDLI scheme is determined based on the balance in the employee's provident fund account, making option C the correct choice.

Who among the following students receives a 'Certificate of Insurance' under a group insurance scheme?

• A) Tisha

• B) Kabir

• C) Aanya

• D) None of the above

Answer explanation

Employees covered under a group insurance scheme are issued a Certificate of insurance, making option C the correct choice.

How does the Social Security Scheme determine the insurance amount?

• A) It's a surprise amount for all beneficiaries!

• B) It's like a magic trick based on the occupation of the insured individual.

• C) It's a secret formula based on the duration of service.

• D) It's a math puzzle calculated based on the salary of the insured individual.

• E) None of the above

Answer explanation

The insurance amount in the Social Security Scheme is calculated based on the salary of the insured individual, making option D the correct choice.

Hey there! Can you guess what Tara needs to do to offer the "Group Insurance Scheme in lieu of EDLI" to her employees?

• A) Get a thumbs up from the insurance company.

• B) Get a high-five from the Central Provident Fund Commissioner.

• C) Wait for a certain duration of service from her employees.

• D) Make sure her employees meet a specific salary threshold.

• E) None of the above.

Answer explanation

The eligibility requirement for the employer to offer the 'Group Insurance Scheme in lieu of EDLI' is approval from the Central Provident Fund Commissioner.

Hey there! Can you help me out with this question?

What is the purpose of the Social Security Fund created by LIC?

• A) To provide insurance cover to the economically weaker sections of society

• B) To generate funds through levies and taxation

• C) To offer free medical care to the elderly

• D) To ensure social security for all citizens

• E) None of the above

Answer explanation

The purpose of the Social Security Fund created by LIC is to ensure social security for all citizens, making option D the correct choice.

Which of the following situations would exempt Riyaan, Tara, and Kiara from needing a medical checkup as part of their group insurance coverage?

• A) If they have pre-existing medical conditions

• B) If the insurance cover is up to a certain limit

• C) If they are above a certain age

• D) If they work in a hazardous environment

• E) None of the above

Answer explanation

A medical checkup is not necessary for employees covered under a group insurance scheme if they have pre-existing medical conditions, as stated in option A.

Hey there! Can you help Riyaan understand why an employer might claim exemption from the EDLI scheme?

• A) To avoid making contributions towards EDLI.

• B) To provide additional insurance coverage to employees.

• C) To manage the insurance benefits internally without involving EDLI.

• D) To reduce the burden of insurance premiums.

• E) None of the above.

Answer explanation

To manage the insurance benefits internally without involving EDLI.

Hey there! Let's play a game of insurance trivia! What sets apart a contributory insurance plan from a non-contributory plan?

• A) The amount of premium paid by the employer

• B) The coverage limit provided to the employees

• C) The requirement for medical checkups

• D) The eligibility criteria for joining the plan

• E) None of the above

Answer explanation

The difference between a contributory insurance plan and a non-contributory plan lies in the amount of premium paid by the employer and the eligibility criteria for joining the plan.

Who among Arnav, Eesha, and Vanya is known as the 'Insured members' in a group insurance policy?

• A) Arnav

• B) Eesha

• C) Vanya

• D) All of the above

• E) None of the above

Answer explanation

The individuals covered under a group insurance policy are referred to as insured members, making option B the correct choice.