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    Question

    Which of the following statements about life insurance in India is/are incorrect?

    1) The Life Insurance Corporation of India (LIC) was established in 1956 and is the only public sector life insurance company in India.

    2) The maximum coverage under a life insurance policy in India is unlimited.

    3) General Insurance Corporation of India (GIC) is a privatized insurance company.

    A 1 and 2 only Correct Answer Incorrect Answer
    B 1 and 3 only Correct Answer Incorrect Answer
    C 2 and 3 only Correct Answer Incorrect Answer
    D 1, 2 and 3 Correct Answer Incorrect Answer
    E 3 only Correct Answer Incorrect Answer

    Solution

    The Life Insurance Corporation of India (LIC) was established in 1956 as a public sector life insurance company in India. However, LIC is not the only public sector life insurance company in India. There are also other public sector life insurance companies such as the General Insurance Corporation of India (GIC) and its subsidiaries. The maximum coverage under a life insurance policy in India is not unlimited. The coverage is subject to the underwriting policies of the insurance company, which take into account various factors such as the age, health, and income of the policyholder. Typically, the coverage amount is determined based on the sum assured, which is the guaranteed amount that the insurance company will pay to the policyholder or the nominee in the event of the policyholder's death.                                                                                                            

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