UPSC Prelims 2006 · General Studies
Question 105: Economy and Social Development
Consider the following statements:
- 1.Life Insurance Corporation of India is the oldest insurance company in India.
- 2.National Insurance Company Limited was nationalized in the year 1972 and made a subsidiary of General Insurance Corporation of India.
- 3.Headquarters of United India Insurance Company Limited are located at Chennai.
Which of the statements given above are correct?
AnswerThe answer is (c).
LIC was formed in 1956 by taking over private life insurers, so it is not the oldest insurer in India; Oriental Life (1818) and, among current insurers, National Insurance (1906) are older. General insurance was nationalised in 1972, and National Insurance became a subsidiary of the General Insurance Corporation of India. United India Insurance has its head office at Chennai. So statements 2 and 3 are correct.
- 1. LIC dates from 1956; older insurers existed.
- 2. General insurance was nationalised in 1972 and National Insurance became a GIC subsidiary.
- 3. United India Insurance is headquartered at Chennai.
Why each option is right or wrong
- (a) Statement 1 is wrong: LIC is not the oldest.
- (b) Statement 1 is wrong, and it omits statement 3.
- (c) Correct: statements 2 and 3 hold.
- (d) Statement 1 is wrong, and it omits statement 2.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2006, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.