New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Under the Insurance Act what is the obligation of

    insurers in relation to reinsurance with Indian re-insurers?
    A Insurers are required to re-insure with Indian re-insurers any percentage of the sum assured on each policy, as long as it is mutually agreed upon by both parties Correct Answer Incorrect Answer
    B Insurers may choose whether or not to re-insure with Indian re-insurers, depending on the nature of the insurance policy, without any specific percentage requirements Correct Answer Incorrect Answer
    C Every insurer must re-insure with Indian re-insurers a percentage of the sum assured on each policy as specified by the Authority, which requires prior approval from the Central Government Correct Answer Incorrect Answer
    D Insurers must re-insure with Indian re-insurers the entire sum assured on each policy, as determined solely by the Central Government without needing approval from the Authority Correct Answer Incorrect Answer
    E Insurers are obligated to re-insure with Indian re-insurers only for policies that exceed a certain threshold, with the percentage determined by the Central Government Correct Answer Incorrect Answer

    Solution

    Section 101A. Re-insurance with Indian re-insurers--(1) Every insurer shall re-insure with Indian re-insurers such percentage of the sum assured on each policy as may be specified by the Authority with the previous approval of the Central Government] under sub-section (2). 

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