IRDAI Assistant Manager Insurance and Management (Specialist Stream) Flashcards

24 sample cards from the Insurance and Management (Specialist Stream) deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What is the regulatory solvency margin ratio insurers must maintain in India?

   Insurers must maintain a minimum Solvency Ratio of 1.5 (i.e., Available Solvency Margin must be at least 150% of the Required Solvency Margin), the regulatory control level set by IRDAI.

2. What is the IRDAI Integrated Grievance Management System (IGMS) and the Bima Bharosa portal?

   Bima Bharosa (earlier IGMS) is IRDAI's online platform for registering, tracking, and monitoring policyholder complaints across insurers, ensuring grievances are logged and resolved within prescribed turnaround times.

3. What is the role of the Insurance Ombudsman and the monetary limit on its awards?

   The Insurance Ombudsman provides a cost-free, quick, out-of-court mechanism to resolve policyholder complaints against insurers. Under the Insurance Ombudsman Rules, 2017, it can pass binding awards up to Rs 30 lakh.

4. List the main distribution channels/intermediaries for insurance in India.

   Individual and corporate agents, insurance brokers, bancassurance partners, Insurance Marketing Firms (IMFs), web aggregators, point-of-sale persons (POSP), Common Service Centres (CSC), and direct/online sales.

5. Differentiate an insurance agent from an insurance broker.

   An agent represents the insurer and can sell the products of (generally) one insurer per category, earning commission from that insurer. A broker represents the customer, can place business with multiple insurers, and advises the client on the best cover.

6. List Henri Fayol's five functions of management (POSDC).

   Planning, Organising, Staffing (Commanding/Directing), Coordinating, and Controlling. (Often summarised in modern texts as Planning, Organising, Staffing, Directing, and Controlling.)

7. What is organisational behaviour (OB)?

   The systematic study of how individuals and groups act within organisations, and the application of that knowledge to improve effectiveness. It draws on psychology, sociology, and anthropology and operates at individual, group, and organisational levels.

8. Summarise Maslow's hierarchy of needs.

   A five-level pyramid of motivating needs activated in order: physiological, safety, social (belonging), esteem, and self-actualisation. A satisfied need no longer motivates; the next higher need emerges.

9. Contrast Herzberg's hygiene factors and motivators.

   In Herzberg's two-factor theory, hygiene factors (pay, policy, working conditions, supervision) prevent dissatisfaction but do not motivate; motivators (achievement, recognition, responsibility, growth) drive genuine satisfaction and motivation.

10. What are McGregor's Theory X and Theory Y?

    Theory X assumes employees dislike work, avoid responsibility, and need control/coercion. Theory Y assumes employees are self-motivated, seek responsibility, and exercise self-direction when committed to goals.

11. Name the main leadership styles in the autocratic-democratic-laissez-faire framework.

    Autocratic (leader decides alone), Democratic/Participative (leader involves the team in decisions), and Laissez-faire (free-rein; leader delegates and minimally intervenes).

12. Define communication and list the elements of the communication process.

    Communication is the exchange of information and meaning between sender and receiver. Elements: sender, encoding, message, channel/medium, receiver, decoding, feedback, and noise (any barrier distorting the message).

13. What are the main types/directions of organisational communication?

    Formal vs informal (grapevine); and by direction: downward, upward, horizontal (lateral), and diagonal communication.

14. Define Human Resource Management (HRM) and list its core functions.

    HRM is managing people to achieve organisational goals and meet employee needs. Core functions: human resource planning, recruitment and selection, training and development, performance appraisal, compensation/benefits, and employee/industrial relations.

15. Differentiate recruitment from selection.

    Recruitment is the positive process of searching for and attracting a pool of potential candidates. Selection is the negative/screening process of choosing the most suitable candidate from that pool through tests, interviews, and verification.

16. What is the marketing mix (4 Ps), and the extended 7 Ps for services?

    4 Ps: Product, Price, Place, Promotion. The extended 7 Ps for services (including insurance) add People, Process, and Physical Evidence.

17. Differentiate marketing from selling.

    Selling focuses on the seller's need to convert products into cash, emphasising existing products and short-term volume. Marketing focuses on customer needs and satisfaction, starting from the market and aiming at long-term profitable relationships.

18. Define market segmentation and name common bases.

    Dividing a heterogeneous market into homogeneous sub-groups with similar needs to target them effectively. Common bases: geographic, demographic, psychographic, and behavioural segmentation.

19. Define corporate governance.

    The system of rules, practices, and processes by which a company is directed and controlled, balancing the interests of shareholders, management, customers, regulators, and the community, built on transparency, accountability, fairness, and responsibility.

20. What are the four pillars/principles of good corporate governance?

    Transparency, Accountability, Fairness (equity), and Responsibility (often expanded to include independence). They guide board conduct and protection of stakeholder interests.

21. Define business ethics and distinguish it from law.

    Business ethics is the application of moral principles and standards of right and wrong to business conduct. Law sets the minimum enforceable standard; ethics covers a wider domain of what one ought to do even when not legally required.

22. What is a 'whistle-blower policy' and why is it part of governance?

    A formal mechanism allowing employees to report unethical, illegal, or fraudulent conduct confidentially and without retaliation. It strengthens internal control, transparency, and accountability, key elements of corporate governance.

23. What is the principle of loss minimisation (mitigation) in insurance?

    The insured must act as a prudent uninsured person would and take all reasonable steps to minimise or prevent further loss at the time of and after a covered event; the insurer is not liable for additional loss caused by the insured's negligence to mitigate.

24. Compare life insurance and general insurance on key features.

    Life insurance: long-term contract, element of certainty (death is certain, timing uncertain), savings + protection, principle of indemnity does NOT apply (benefit policy). General insurance: usually annual contracts, covers pure risks to property/liability/health, and is governed by the principle of indemnity.

What this deck covers

Insurance and Management (Specialist Stream) flashcards FAQ