Insurance exercise class 10

 

Unit-8 Lesson-8

Insurance

A.  Very Short Answer Questions.

1.  What do you mean by insurance?

Ans:- Insurance is a method of ensuring protection and compensation of the loss or damage.

2.  What is life insurance?

Ans:- Life insurance is a protection against financial loss that would result from the premature death of an insured.

3.  What is non-Life insurance?

Ans:- The insurance other than the life insurance in which insurance companies provide compensation of the economic loss and provide protection against physical damage is non-Life insurance.

 

B.  Short Answer Questions.

1.  What are the advantages of insurance?

Ans:- The advantages of insurance are as follows:-

i)  Compulsory saving in order to pay premium on time.

ii)  Compensation against loss or damages.

iii)  Safe future.

iv)  Bonus is obtained.

v)  With a sum of money obtained after the completion of the insurance term, investment can be made on productive field.

vi)  Loan can be borrowed when needed.

 

2.  Discuss the things to remember while getting insured.

Ans:- The things to be remembered while getting insured are given below:

i)  Select the suitable insurance policy.

ii)  Be clear about the objective of insurance.

iii)  Mention clearly about the beneficiary.

iv)  Supply correct information in the application.

v)  Be clear about the amount of premium and its payment intervals.

vi)  Be informed about the proposal of insurance.

vii)  Go directly to the insurance company or through the licensed insurance agent.

viii)  Receive a receipt of the payment made.

ix)  Inform to the family members about the insurance that you made.

x)  Remember the due date and pay premium installment on time.

xi)  Keep receipts and documents related to insurance safe.

 

3.  Have you or your family taken any life insurance policy? Clarify your views towards life insurance.

Ans:- Insurance refers to an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium. It helps to minimize the risks of our lives, so my parents have also takes an insurance policy. In my view, insurance is one of the important tasks that an individual has to do in his / her life. Everyone should have an insurance policy because of the given reasons:

i)  It provides cash collectivity after the completion of premium installment.

ii)  The relatives of the insured’s get total sum of premium amount at his / her sudden death.

iii)  Death benefits are generally income tax free to the beneficiary.

iv)  It helps to maintain standard of living and encourage savings.

Therefore, I suggest everyone to do insurance and so do I.

 

4.  Suppose you are the agent of insurance, now present any four advantages of animal and agriculture insurance to inspire your neighbor farmer.

Ans:- I am an insurance agent of XYZ Insurance company. My duty is to inspire the farmers to ensure their agricultural product and animals. Nepal is an agricultural country, so there is importance of non-Life Insurance. Being an insurance agent, I can inspire the neighboring to do non-life insurance in the following ways:

i)  They can get up to 90% compensation at the death of livestock.

ii)  They can feel secured after taking an insurance policy for livestock.

iii)  Farmers can take crop Insurance to protect their crops from unforeseen setbacks. It helps in fighting poverty too.

iv)  They have to pay only 25% of the premium and the remaining 75% is paid by the government which makes the farmers able to repay their loans given during the time of crop failure.

 

C.  Long Answer Questions.

1.  Why is non-Life Insurance necessary? Mention its importance in the context of an agricultural country Nepal.

Ans:- Non Life Insurance is necessary to protect the huge investment done in trade, agriculture, housing, cattle rearing, industry, vehicle, shop, etc. Non-Life Insurance is very important in the context of an agricultural country in Nepal. The importances are given below:-

i)  Farmers get the compensation up to 90% if the crops are damaged.

ii)  They can get the compensation even against the death of their livestock from security deposit.

iii)  To get compensation if the crops are damaged by wind/storm.

iv)  They get compensation if the crops are damaged by insects.

v)  To get compensation on the crops ready for harvestation but damaged by rain and hailstone.

vi)  To get compensation on the crops lost due to drought.