The General Awareness section of SBI PO trips up thousands of aspirants every year — not because they ignore banking, but because they underestimate insurance. According to the SBI PO 2023 official notification, GA carries 40 marks, and insurance-related questions consistently appear in the mains exam.
This article covers exactly what you need to know: the types of insurance and the regulatory framework that governs them — nothing more, nothing less.
- India's insurance sector is regulated by IRDAI (Insurance Regulatory and Development Authority of India), established under the IRDAI Act, 1999
- Two main categories: Life Insurance and Non-Life (General) Insurance
- LIC holds the largest market share in life insurance (~61% as of FY2023, per IRDAI Annual Report)
- Foreign Direct Investment (FDI) in insurance is capped at 74% (amended in 2021)
- SBI PO exams frequently test IRDAI functions, insurance types, and recent policy changes
Source: IRDAI Annual Report 2022–23, irdai.gov.in
📋 Types of Insurance in India
India's insurance market is divided into two broad categories that every SBI PO aspirant must know cold.
Life Insurance
covers risk to human life. It includes term plans, endowment policies, ULIPs (Unit Linked Insurance Plans), and pension plans. LIC dominates this space, but 23 private players also operate here.
General (Non-Life) Insurance
covers everything else:
- Health Insurance – covers hospitalisation and medical expenses
- Motor Insurance – mandatory under the Motor Vehicles Act for third-party liability
- Fire Insurance – protects property against fire damage
- Marine Insurance – covers goods in transit (sea, air, road)
- Crop Insurance – covered under PM Fasal Bima Yojana (PMFBY)
- Travel Insurance – covers trip cancellations, medical emergencies abroad
💡 A third niche category — Reinsurance — involves insurers transferring risk to another insurer. GIC Re (General Insurance Corporation of India) is India's sole national reinsurer.
🏛️ IRDAI: The Regulatory Backbone
The Insurance Regulatory and Development Authority of India (IRDAI) is the apex body governing all insurance entities. Headquartered in Hyderabad, it was constituted under the IRDAI Act, 1999 and became operational in 2000.
Key IRDAI functions tested in SBI PO:
- Issuing licenses to insurance companies
- Protecting policyholder interests
- Setting solvency margins for insurers
- Regulating investment norms for insurance funds
- Approving premium rates for certain products
Solvency ratio is a critical concept — IRDAI mandates insurers maintain a minimum solvency ratio of 1.5 to ensure they can meet claims.
🔄 Recent Regulatory Changes You Should Know
Priya from Nagpur, who cleared SBI PO Mains 2023, credited her GA score to tracking recent IRDAI updates — a tip most aspirants miss.
Key updates relevant for 2024–25 exams:
- Bima Sugam — a digital insurance marketplace proposed by IRDAI (2023) to simplify policy purchase and claims
- Bima Vistaar — a composite rural insurance product combining life, health, and property cover
- FDI limit raised to 74% from 49% (Insurance Amendment Act, 2021)
- IRDAI removed the age cap of 65 years for health insurance entry (2022 circular)
🔍 People Also Search For
How many types of SBI insurance are there?
SBI offers insurance services mainly through its subsidiaries in life insurance and general insurance segments. These include products related to life cover, health protection, motor insurance, travel insurance, and property coverage. Candidates should understand the basic categories for banking awareness preparation. Regular revision of financial awareness topics helps in scoring better.
What are the 4 main types of insurance?
The four major types of insurance include life insurance, health insurance, motor insurance, and property or general insurance. Each type provides financial protection against different risks such as death, illness, accidents, or asset damage. Understanding these categories is important for banking and financial awareness sections. Practising awareness questions improves exam readiness.
What is the regulation of the insurance sector in India?
The insurance sector in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI). It ensures fair practices, protects policyholder interests, and monitors insurance company operations. Candidates should know key regulatory roles for banking exams. Staying updated with financial news helps strengthen awareness.
What are the 7 principles of life insurance?
Key principles include utmost good faith, insurable interest, indemnity, contribution, subrogation, proximate cause, and mitigation of loss. These principles guide insurance contracts and claim settlements. Understanding them helps candidates answer financial awareness questions correctly. Regular revision improves retention.
Why is insurance awareness important for SBI PO exam?
Insurance awareness is part of banking and financial knowledge tested in mains and interview stages. Candidates must understand basic concepts, regulations, and current developments in the sector. This knowledge helps in objective questions and descriptive discussions. Consistent preparation improves overall exam performance.
🎯 Conclusion: Your Next Step
The SBI PO insurance questions aren't random — they follow a pattern: IRDAI's role, types of insurance, FDI limits, solvency norms, and flagship government schemes. Master these five areas and you've covered 90% of what the exam throws at you.
Don't just memorise — understand why regulations exist. That depth is what separates 30-mark GA scorers from 18-mark ones.
Ready to strengthen your SBI PO General Awareness? Explore PrepGrind's SBI PO GA module — structured by exam toppers and updated with every IRDAI circular that matters.