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JAIIB IE&IFS Unit 26 — Insurance Companies: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 26 — Insurance Companies (Module C — Indian Financial Architecture). The Mock Centre holds 96 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module C96 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. History: Oriental Life 1818 (first); Triton 1850 (first general); Indian Mercantile 1907 (all classes); 1912 first life statute; 1928 statistics Act; 1938 Insurance Act (Controller; amendments 1950/68/88/99); 1950 abolished principal agencies; 1968 TAC.
  2. LIC: ordinance 19-1-1956, formed 1-9-1956; 245 = 154 Indian + 16 foreign + 75 provident; GoI capital ₹5 crore; Sec 37 guarantee (not ULIPs); monopoly ended 1999; IPO May 2022.
  3. GIBNA 1972 (effective 1-1-1973, Art 39(c)): 107 insurers → 4 companies (National-Calcutta, New India-Bombay, Oriental-Delhi, United India-Madras); GIC (inc. 1971/72, ₹75 crore) holding till GIBNA Amendment 2002 (21-3-2003) → GIC Re national reinsurer.
Law update, September 2026. Current law: IRDAI cut the obligatory cession to GIC Re to 4% from FY 2022-23 and has kept it there since. 'Per the textbook' → 5%; 'currently' → 4%.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
The party providing cover is the:
Why (b): The party providing cover is the INSURER — it takes the risk; the insured is the one whose risk is covered.
Question 2 of 5
The document with all terms and conditions is the:
Why (b): The document containing all terms and conditions is THE POLICY — the contract itself.
Question 3 of 5
Insurance FDI's initial (2000) limit:
Why (a): Insurance FDI's initial limit at the 2000 market opening: 26% — the cautious first step.
Question 4 of 5
The two main intermediary types:
Why (a): The two main intermediary types: AGENT AND BROKER — the seller for the insurer, the shopper for the customer.
Question 5 of 5
Repository services cost policyholders:
Why (c): Repository services cost policyholders NOTHING — free electronic holding, insurer-funded.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Oriental Life 1818Triton 1850First life vs first general
245 (LIC)107 (GIBNA)Life vs general absorptions
Practise all 96 questions on Unit 26. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 25: Non-Banking Financial Companies (NBFCs) · Unit 27: Indian Financial System — Regulators and Their Roles → · All IE&IFS units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.