Benefits of the Insurance Company and the IRDA’s Role

The video tutorial introduces the concept of insurance, likening it to a safety net that provides financial security and risk mitigation for individuals and businesses. It highlights the role of insurance in promoting economic growth and social welfare. The Insurance Regulatory and Development Authority (IRDA) is introduced as the regulatory body overseeing the insurance sector in India, ensuring fair practices and protecting policyholders' rights. The video details IRDA's functions, including licensing, policyholder protection, rule formulation, consumer education, and complaint redressing, emphasizing its role in maintaining trust and integrity in the insurance industry.

What is the primary role of insurance companies?

• To manage government funds

• To regulate the stock market

• To offer financial protection against uncertainties

• To provide loans to individuals

How does insurance contribute to economic growth?

• By limiting business expansions

• By reducing taxes

• By encouraging businesses to take risks and invest

• By increasing government spending

What is the main purpose of the IRDA?

• To manage public transportation

• To regulate and develop the insurance sector

• To oversee the stock market

• To regulate the banking sector

Which function of IRDA ensures that only reliable companies provide insurance?

• Consumer education

• Licensing and regulation

• Complaint redressal

• Policyholder protection

What does IRDA do to protect policyholders' interests?

• It provides loans to policyholders

• It establishes guidelines for equitable practices

• It invests in the stock market

• It offers discounts on premiums

How does IRDA assist consumers in making informed decisions?

• By managing their investments

• By providing financial advice

• By educating them about insurance and their rights

• By offering free insurance policies

What action does IRDA take if an insurance company denies a legitimate claim?

• It cancels the policyholder's insurance

• It ignores the complaint

• It fines the policyholder

• It investigates and takes necessary action against the company