Skip to content

NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Non-Life Insurance Products

Caselet: Ms. Rao has a family floater health policy with sum insured Rs 10 lakh and a Rs 2 lakh voluntary deductible (applied per claim). Her hospital bill, all admissible, is Rs 7.5 lakh. She also has a super top-up of Rs 20 lakh with a threshold of Rs 10 lakh, which is not triggered by this claim. Assuming no sub-limits or co-payment, what does the base policy pay?

The base policy pays Rs 5.5 lakh. The insured bears the Rs 2 lakh voluntary deductible out of the Rs 7.5 lakh admissible bill, and the remainder is within the Rs 10 lakh sum insured. The super top-up is not triggered.

  1. ARs 7.5 lakh
  2. BRs 5.5 lakhCorrect
  3. CRs 9.5 lakh
  4. DRs 2 lakh

Explanation

Deductible is borne by the insured: 7.5 - 2 = Rs 5.5 lakh, within the Rs 10 lakh sum insured. Rs 7.5 lakh ignores the deductible. Rs 9.5 lakh adds it wrongly. Rs 2 lakh is just the deductible. The super top-up does not respond as the threshold is not crossed.

Did you get it right without looking?

One question tells you little. A timed set on Non-Life Insurance Products shows your real accuracy, how long you take and where you lose marks.

Practise Non-Life Insurance ProductsFree diagnostic mock

More Non-Life Insurance Products questions