4 Most VSAQ’s of Insurance Services Chapter in Inter 2nd Year Commerce (TS/AP)
2 Marks
VSAQ-1 : Endowment policy. (OR) Define Endowment Policy. (OR) Write about the endowment policy. (OR) What is Endowment policy?
An endowment policy is a type of life insurance policy that has a limited duration, typically running for a specified period or until a certain age. If the policyholder survives until the end of the specified period, the policy matures, and the policyholder receives the policy’s maturity amount. However, if the policyholder passes away before the specified period ends, the death benefit is paid to the beneficiary. Endowment policies require premium payments to be made until the maturity date, making them a combination of an investment for future financial security and protection for the policyholder’s family in case of premature death.
VSAQ-2 : Surrender Value. (OR) What is Surrender Value?
Surrender value, in the context of an insurance policy, is the amount that the insurance company pays to the policyholder when the policy is voluntarily terminated or surrendered before its maturity date. This amount is provided to the policyholder after deducting any applicable surrender charges or fees. Essentially, it represents the value of the policy at the time of surrender and is typically less than the total premiums paid by the policyholder.
VSAQ-3 : What is the IRDA?
The Insurance Regulatory and Development Authority (IRDA) is a regulatory body in India responsible for overseeing and regulating the insurance industry. It was established based on the recommendations of the R.N. Malhotra Committee and operates under the Insurance Regulatory and Development Authority (IRDA) Act, 1999. The main objective of IRDA is to regulate and promote the insurance business while also safeguarding the interests of policyholders. The IRDA is headquartered in Hyderabad and has the authority to regulate both life and non-life insurance sectors in India.
VSAQ-4 : Time policy. (OR) What is Time policy?
Time policy insurance is a type of insurance provided by a company for a specific duration or time period. This policy typically covers damages that occur to the insured property, such as hull damage. In some cases, it may also extend to cover goods and other movable assets when they are present in small quantities. Time policy insurance provides coverage for a limited time frame and is often used for assets that are not in constant use or transit.