New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    Which of the following is true regarding the General Insurance Business (Nationalization) Act, 1972?

    A The act nationalized all general insurance companies operating in India. Correct Answer Incorrect Answer
    B The act led to the creation of the Insurance Regulatory and Development Authority of India (IRDAI). Correct Answer Incorrect Answer
    C The act allowed for the entry of private players into the general insurance sector in India. Correct Answer Incorrect Answer
    D The act abolished the concept of third-party insurance in India. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The General Insurance Business (Nationalization) Act, 1972 was passed by the Indian Parliament to nationalize all general insurance companies operating in India. The act led to the creation of four public sector general insurance companies: National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company Limited. The act did not allow for the entry of private players into the general insurance sector in India. The concept of third-party insurance was not abolished by the act. Hence, option A is correct.

    Practice Next