Questions focus on: Types identification (40%), Coverage details (30%), Premium calculation (20%), Legal requirements (10%). Most questions are direct factual or scenario-based.
Shortcut Trick - MHFMT Memory:
Motor-Health-Fire-Marine-Travel covers 90% of general insurance questions. Remember this sequence for quick elimination in MCQs.
Worked Example 1:**
A car worth Rs. 8,00,000 is 2 years old. Depreciation rate is 15% per year.
Calculate IDV.
Step 1: Total depreciation = 15% × 2 years = 30%
Step 2: IDV = 8,00,000 - (8,00,000 × 30%)
Step 3: IDV = 8,00,000 - 2,40,000 = Rs. 5,60,000
Worked Example 2:
Health insurance premium is Rs. 3 per thousand. Sum Insured is Rs. 5,00,000. Calculate premium.
Step 1: Rate calculation = 5,00,000 ÷ 1000 = 500 units
Step 2: Premium = 500 × 3 = Rs. 1,500
Exam Shortcut:
For motor insurance questions, remember: Third Party is MANDATORY, Comprehensive is OPTIONAL. This eliminates 50% wrong options immediately.
Premium Calculation Trick:
Higher Sum Insured = Higher Premium (direct relation)
Higher Age of asset = Lower Premium (inverse relation)
This logic applies to all general insurance types.
#1 Common Mistake:
Students confuse 'Sum Insured' with 'Sum Assured'.
Sum Insured is used in general insurance (maximum liability), while Sum Assured is for life insurance (guaranteed amount). In general insurance, you cannot get more than actual loss even if Sum Insured is higher.
Key Exam Focus Areas:
Motor Insurance dominates questions (30% weightage). Health insurance follows (25%). Fire and Marine get 15% each.
Travel insurance appears in 10% questions. Miscellaneous types cover remaining 5%.