Question

Rajnish is a retired colonel in the madras regiment. He suffered from a bullet injury on his left thigh, in the India-Pakistan war in 1971, causing a nerve damage and leaving him partially paralysed. Rajnish had bought a plan from a company, to support himself in case of grievous injury and paid a premium of Rs. 500 a month. When he got injured, he was paid for his expenses entirely, for hospitalisation and recovery. Such an arrangement is called __________.

• A. provident fund
• B. pension
• C. medical insurance
• D. gratuity

Answer 1

The correct option is C medical insurance

Rajnish was paid by the insurance company for his medical expenses that he incurred, to help him recover from his injury. The payment to Rajnish by the insurance company was in return for the Rs. 500 premium that was paid by him every month. This arrangement is called medical insurance.

There are different types of insurance like life insurance, medical insurance, home insurance, etc. In all types of insurance, a payment is made at regular intervals to the insurance company. In return, a one-time payment is made by the insurance company, to the person, in case of damage to the insured property