UPSC Prelims Practice Questions — PSU insurers dodge questions on underuse of own TPA

Q1. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Under the RTI Act, 2005, even information whose disclosure would prejudicially affect the security of the State may be disclosed by a public authority if the public interest in disclosure outweighs the harm to the protected interests.
  2. The public-interest override in Section 8(2) of the RTI Act applies only to those exemptions in Section 8(1) that do not already contain a public-interest proviso of their own.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q2. A citizen asks a general insurer, in which the Union Government holds a majority of the shares, for the share of its health claims that it routes to its captive third-party administrator. The Central Public Information Officer refuses, citing commercial confidence, and the First Appellate Authority upholds the refusal. In this context, consider the following statements: Which of the statements given above is/are correct?

  1. Because the insurer is a company incorporated under company law and not a government department, it lies outside the RTI Act altogether.
  2. The citizen may file a second appeal before the Central Information Commission, which has the power to order the information to be furnished.
  3. The second appeal lies before the State Information Commission of the State in which the insurer's registered office is situated.
  • A. 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1 and 3 only

Q3. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. An RTI applicant may approach the Central Information Commission in second appeal even if the First Appellate Authority has passed no order on the first appeal within the time allowed.
  2. The Central Information Commission's jurisdiction extends to public authorities that are substantially financed, directly or indirectly, by funds provided by the Central Government.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q4. With reference to the audit and parliamentary scrutiny of government companies such as the public-sector general insurers, consider the following statements: Which of the statements given above is/are correct?

  1. The statutory auditor of a government company is chosen by the company's own board, and the CAG's role is confined to commenting on the accounts so audited.
  2. Audit observations on the accounts of government companies fall within the purview of the Committee on Public Undertakings rather than the Public Accounts Committee.
  3. A government company's commercial autonomy under company law does not place its accounts outside the audit mandate of the CAG.
  • A. 1, 2 and 3
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 2 and 3 only

Q5. Consider the following statements regarding government shareholding in the public-sector general insurers: Which of the statements given above is/are correct?

  1. Following the 2021 amendment to the General Insurance Business (Nationalisation) Act, 1972, the Central Government's shareholding in a specified insurer can fall below 51 per cent without any further amendment of that Act.
  2. If the Central Government alone held 45 per cent of such an insurer's paid-up share capital, with no State Government holding any and the remaining shares held by private investors, the insurer would not be a 'government company' even if the Central Government remained its largest shareholder.
  • A. 1 only
  • B. 2 only
  • C. Both 1 and 2
  • D. Neither 1 nor 2

Q6. With reference to the public-sector insurers that promoted Health Insurance TPA of India Ltd., consider the following statements: Which of the statements given above is/are correct?

  1. The health-insurance claims these promoters service through the administrator arise from general (non-life) insurance business, not life insurance business.
  2. The 2021 removal of the minimum 51 per cent government holding in the specified insurers applies equally to the Life Insurance Corporation of India.
  3. State ownership of these insurers traces back to an Act of Parliament that nationalised private companies carrying on general insurance business.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 1 and 3 only
  • D. 1 and 2 only