Are you preparing for the Banking and Insurance exams like SBI, PNB, LIC, NICAL, etc? If yes, you have come to the right place to get more information about the LIC-related questions and their answers. Because these types of questions are asked as similar chairman of the LIC, the LIC Establishment Year, the LIC Tag Lines and the LIC head office, etc.
We have come up with the most expected GK Quiz based on the LIC organisation. Each question is very important for the Banking and Insurance exam. We have tried to collect the LIC-related History and current running facts in this article.
LIC GK Quiz and MCQs
Every question is based on the MCQ models and practice more and more to score the number in the insurance exam. Below, we have added all the questions and answers in the objective with the answers to each question.
We suggest that each aspirant spend more time on the following questions and learn by heart to get a higher score in the banking and insurance exam.
LIC GK Quiz
Question 1: In which year was LIC (Life Insurance Corporation of India) established?
A) 1947
B) 1956
C) 1962
D) 1972
Answer: B) 1956
Question 2: What is the headquarters location of LIC?
A) Delhi
B) Chennai
C) Mumbai
D) Kolkata
Answer: C) Mumbai
Question 3: LIC is a?
A) Private insurance company
B) Public sector insurance company
C) Cooperative insurance company
D) Foreign insurance company
Answer: B) Public sector insurance company
Question 4: Who is the chairman of LIC as of 2025?
A) Devesh Srivastava
B) Neerja Kapur
C) Siddhartha Mohanty (Interim)
D) Rajiv Kumar
Answer: C) Siddhartha Mohanty (Interim)
Question 5: What type of benefit does a Unit-Linked Insurance Plan (ULIP) provide?
A) Only insurance cover
B) Investment with insurance cover
C) Only investment benefit
D) Only maturity amount
Answer: B) Investment with insurance cover
Question 6: What does IRDAI stand for?
A) Insurance Regulatory and Development Authority of India
B) Indian Regulation and Development Agency of Insurance
C) Insurance Research and Data Authority of India
D) Insurance Regulatory Development Agency of India
Answer: A) Insurance Regulatory and Development Authority of India
Question 7: Which of the following insurers is NOT classified as a Domestic Systemically Important Insurer (D-SII) by IRDA?
A) LIC
B) General Insurance Corporation of India (GIC)
C) New India Assurance Company Limited
D) Oriental Insurance Company Ltd.
Answer: D) Oriental Insurance Company Ltd.
Question 8: What is the minimum lock-in period for a ULIP policy?
A) 3 years
B) 4 years
C) 5 years
D) 6 years
Answer: C) 5 years
Question 9: The premium paid towards a ULIP is divided into which two components?
A) Loan and interest
B) Maturity and Bonus
C) Life cover and investment fund
D) Dividend and maturity
Answer: C) Life cover and investment fund
Question 10: What is bancassurance?
A) Insurance sold through banks
B) Insurance selling by agents
C) Insurance by government only
D) Online insurance selling
Answer: A) Insurance sold through banks
Question 11: What does LIC IPO stand for?
A) Insurance Public Offering
B) Initial Public Offering
C) Investment Public Offering
D) Interest Payment Offering
Answer: B) Initial Public Offering
Question 12: LIC IPO in 2022 sold what percentage of government stake?
A) 2.5%
B) 3.5%
C) 5%
D) 7.5%
Answer: B) 3.5%
Question 13: What is the maximum number of years for which a life insurance policy can be taken under LIC?
A) 60 years
B) 70 years
C) 80 years
D) 100 years
Answer: D) 100 years
Question 14: LIC offers which type of insurance plans?
A) Term insurance only
B) Endowment plans only
C) A variety including term, endowment, money-back, and ULIPs
D) Health insurance only
Answer: C) A variety including term, endowment, money-back, and ULIPs
Question 15: Who was the first chairman of LIC?
A) D.V. Kapur
B) T.T. Krishnamachari
C) K.C. Mirza
D) B.S. Mehta
Answer: A) D.V. Kapur
Question 16: What is the death benefit in a Type I ULIP?
A) Fund value only
B) Assured sum only
C) Higher of assured sum or fund value
D) Sum assured plus bonus
Answer: C) Higher of assured sum or fund value
Question 17: Which Act nationalized Life Insurance in India leading to the formation of LIC?
A) Insurance Act 1938
B) Life Insurance Corporation Act 1956
C) General Insurance Business (Nationalisation) Act 1972
D) Banking Regulation Act 1949
Answer: B) Life Insurance Corporation Act 1956
Question 18: What does the term ‘sum assured’ mean in an LIC policy?
A) Total premiums paid
B) Minimum amount guaranteed to be paid on death or maturity
C) Investment amount in shares
D) Bonus amount only
Answer: B) Minimum amount guaranteed to be paid on death or maturity
Question 19: LIC is regulated by which authority?
A) SEBI
B) RBI
C) IRDAI
D) TRAI
Answer: C) IRDAI
Question 20: How many countries operate LIC directly?
A) 1 (India only)
B) 2
C) 5
D) More than 10
Answer: A) 1 (India only)
Question 21: Which of the following is NOT a benefit of LIC policies?
A) Tax benefits under section 80C
B) Guaranteed returns
C) Free medical check-up for policyholders
D) Loan facilities against policy
Answer: C) Free medical check-up for policyholders
Question 22: The largest public issue in India till date was by?
A) Reliance Industries
B) LIC
C) TCS
D) HDFC Bank
Answer: B) LIC
Question 23: Under LIC policies, the nominee receives the claim amount in case of?
A) Policy maturity only
B) Policy lapse
C) Death of the policyholder
D) Policy surrender
Answer: C) Death of the policyholder
Question 24: LIC’s maximum assured sum for any policy is usually?
A) Rs 1 Crore
B) Rs 50 Lakhs
C) No fixed maximum limit
D) Rs 10 Lakhs
Answer: C) No fixed maximum limit
Question 25: What is the meaning of ‘premium’ in LIC policies?
A) The amount paid to buy the policy
B) Interest earned on policy amount
C) Fee charged by government on policy
D) Bonus given by LIC
Answer: A) The amount paid to buy the policy