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Miscellaneous·Easy

Consider the following statements about insurance sector in India: 1. 100 percent Foreign Direct Investment (FDI) via automatic route is allowed in the insurance sector in India. 2. The Insurance Regulatory and Development Authority of India is the regulator for the insurance sector in India. 3. The share of non-life insurance is more than life insurance in India in the total premium collected in India. Which of the statements given above is/are correct?

Consider the following statements about insurance sector in India:

1. 100 percent Foreign Direct Investment (FDI) via automatic route is allowed in the insurance sector in India.

2. The Insurance Regulatory and Development Authority of India is the regulator for the insurance sector in India.

3. The share of non-life insurance is more than life insurance in India in the total premium collected in India.

Which of the statements given above is/are correct?

Options

  1. a.

    2 only

    Correct answer
  2. b.

    1 and 2 only

  3. c.

    2 and 3 only

  4. d.

    1 and 3 only

Explanation

• Currently, 49% of FDI is permitted in the insurance sector in India, under the automatic route.

• Globally, the share of life insurance business in total premium was 54.32 percent. However, the share of life insurance business for India was very high at 74.73 percent, while the share of non-life insurance business was at 25.27 percent.

• The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body formed under an Act of the Parliament, viz., the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999) for overall supervision and development of the insurance sector in India.

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