Free Life and Health Insurance Exam Questions That Helps Candidates Pass

The Ombudsman’s award is binding on insurers if accepted by the complainant, but the complainant may reject it and pursue legal remedies. IC-38 clarifies that this ensures fairness, giving consumers flexibility while obligating insurers to comply once accepted.

Speculative risks, involving profit or loss possibilities (e.g., stock investments), are not insurable. IC-38 clarifies that only pure risks—loss or no loss outcomes—are insurable. Insurance protects against uncertainty, not speculation.

The Insurance Ombudsman deals specifically with policyholder grievances such as claim delays, unfair policy terms, or service deficiencies. IC-38 highlights that criminal cases or investment disputes fall outside its scope. This system provides policyholders an affordable and accessible way to resolve insurance-specific complaints without prolonged litigation.

Hospital cash plans provide a daily allowance during hospitalization, irrespective of actual expenses. IC-38 clarifies they are supplemental policies that cover incidental costs like food or lost income.

Policy documents include coverage, exclusions, and premium details. The insurer’s investment portfolio is irrelevant and excluded. IC-38 emphasizes that the policy document is a legal contract defining the insurer-insured relationship, not a financial disclosure by the company.