Which of the following is a loss-making general insurance company in 2021?
This questions was previously asked in
SEBI Grade A (Ph 1 Paper 1 2022)
National Insurance Company
Incorrect AnswerOriental Insurance Company Limited
Incorrect AnswerNew India Assurance Co. Ltd
Incorrect AnswerOnly I and II
Correct AnswerOnly III
Incorrect AnswerExplanation:
- Option 1: National Insurance Company
- National Insurance Company has been facing financial challenges and reported losses in recent years, including 2021.
- Option 2: Oriental Insurance Company Limited
- Oriental Insurance Company Limited also reported significant losses in 2021, adding to its financial difficulties.
- Option 3: New India Assurance Co. Ltd
- New India Assurance Co. Ltd is typically more financially stable compared to some other state-run insurers and has been profitable, hence not a loss-making company in 2021.
- Option 4: Only I and II
- This option suggests that National Insurance and Oriental Insurance were loss-making in 2021, which aligns with the reported financial condition of these companies.
- Option 5: Only III
- Incorrect, as New India Assurance Co. Ltd was not a loss-making company in 2021.
Correct Answer: Option 4: Only I and II
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By: Parvesh Mehta