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Per the IRDA brochure, an insurance product is primarily a tool for:
A{'text': 'Tax saving', 'letter': 'A'}
B{'text': 'Risk protection', 'letter': 'B'}
C{'text': 'Investment growth', 'letter': 'C'}
D{'text': 'Liquidity', 'letter': 'D'}
Answer & Solution
Correct answer: B. {'text': 'Risk protection', 'letter': 'B'}
1. The brochure differentiates insurance from savings and investment products.
2. It emphasises the principal purpose of an insurance contract.
3. Insurance is primarily for risk protection — explicitly stated in the IRDA brochure.
_Source: IRDA Brochure (irdai.gov.in — official IRDAI publication) — "AN INSURANCE PRODUCT IS DIFFERENT FROM A SAVING OR AN INVESTMENT PRODUCT. INSURANCE IS PRIMARILY FOR RISK PROTECTION."_