IBPS PO Prelims Full Mock Test 13

1. Read the following passage carefully and answer the questions given after it. Most people think of insurance only after a crisis. A family that loses its main earner, a shop destroyed by fire or a farmer whose crop fails discovers too late that a small annual premium could have softened the blow. In India, insurance penetration remains low compared with many other economies, particularly among informal workers. Part of the reason is trust. Many buyers have heard stories of claims rejected on technical grounds, and agents have sometimes sold policies that the buyer did not understand. Another reason is that the benefits of insurance are invisible in good years: a person who pays premiums for a decade without making a claim may feel that the money was wasted. Low-cost government-backed schemes have helped by offering simple life and accident cover for a few hundred rupees a year, with premiums deducted automatically from bank accounts. Their simplicity is their strength: there are few exclusions, and the claim process is straightforward. Insurers now hope to build on this base with products designed for specific risks, such as cover for gig workers against accidents on the road or for small shops against floods. If claims are paid quickly and fairly, word of mouth may achieve what advertising has not.

   Q1.According to the passage, when do most people think of insurance?

   • A.Only after a crisis has occurred
   • B.Only when they retire
   • C.Every year during tax filing
   • D.When they open a bank account
   • E.Before buying a house

2. Q2.Which of the following is given as a reason for low trust in insurance?

   • A.High interest rates on loans
   • B.Stories of claims rejected on technical grounds
   • C.Very low premiums
   • D.Lack of bank branches
   • E.Too many government schemes

3. Q3.Why may a person who never makes a claim feel that his premiums were wasted?

   • A.Because the benefits of insurance are invisible in good years
   • B.Because the insurer refunds nothing by law
   • C.Because premiums are very high
   • D.Because claims are always rejected
   • E.Because agents keep the money

Start the test to answer these. Correct answers and explanations are shown after you submit.