Refer to, “Similarly, IRDAI said it has been observed that advantages such as higher insurance penetration, lower prices, increased choice to customers, which would orwise accrue to policyholder by making micro-insurance products available through POS channel are being lost. “Therefore, Authority after reviewing position, hereby allows all Micro Insurance products of Life, General and Health insurance to be distributed through POS also,” circular said.”
 
Now, statement A is correct since IRDAI has accepted that choices were fewer for policyholders before since micro insurance products were not available through POS channel of distribution.

Statement B is also correct since with availability of micro insurance products through POS channel of distribution, premiums will become lower and more competitive as every insurance company will try to woo customers with lower premium.

Statement C is not correct since re is no reference in passage that insurance companies used to offer policies without any kind of customization before decision of IRDAI to allow micro insurance products to be sold through POS channel of distribution. This can be eliminated.

Statement I is correct since it is given in passage that POS channel of distribution will be used in order to provide policies which cross permissible limit of coverage applicable to such channel by IRDAI. Refer to, “On manner of dealing with cases of health/personal accident (PA) policies where sum insured crosses limit specified under POS guidelines, IRDAI said sponsoring entity is allowed to recognise such policies as being sourced by POS and pay fees to POS.”

Statement II is correct since it is true that insurance companies made representations to do away with provision of addition of prefix POS to all insurance products sold through this channel of distribution. Refer to, “Insurers made representations to change norms that made it mandatory for every policy sold through ‘Point of Sales Persons’ to be separately identified and pre-fixed by name ‘POS’.”

Statement III is not correct since re is no reference in passage that IRDAI can only use POS channel of distribution to sell insurance policies and not insurance companies. This is absurd because IRDAI is regulator and it does not sell any policy itself.

So, statements I and II are correct according to information given in passage.

Refer to, “The IRDAI (Protection of Policyholder’s Interest) Regulations, 2017, under matters to be stated in life, general and health insurance policy, makes it mandatory to give details of person involved in sales process. “By virtue of this requirement, need to have prefix ‘PoS’ becomes redundant as insurance policy itself will carry details of person selling such a policy,”
 
It is clear from above lines that IRDAI has made it mandatory now to add details regarding point of sales persons selling insurance policies in country and refore, now re is no need to add prefix in name of product.

Among given options, option A is not correct since it does not make any sense as IRDAI is authority and it will not issue guidelines for own whereas option B can be eliminated on ground that reason given in this option is not correct. Option D can also be eliminated because information given here is not correct. Only option C explains actual reason of new guidelines issued by IRDAI regarding POS channel of selling insurance policies.

Refer to, “The Insurance Regulatory and Development Authority of India (IRDAI) has created a special category of insurance policies called micro-insurance policies to promote insurance coverage among economically vulnerable sections of society. A micro-insurance policy is a general or life insurance policy with a sum assured of Rs 50,000 or less.”
 
Statement I is correct since it is mentioned that micro insurance policies are meant to be given to people from backward section of society.

Statement II is also correct since it is also true that micro insurance policies are meant to give coverage of up to Rs 50000 or less.

Statement III is not correct since it is not mentioned anywhere if banks and insurance companies are only authorized to sell micro insurance policies in country but Point of Sales persons are also eligible and that is main me of passage.

So, both Statements I and II are correct.

The given word mandatory has been used in sense that all insurance companies will now have to give details of point of sales persons working with m in distribution of insurance products. It has been made compulsory by IRDAI.

Among given options, licensed cannot be an antonym since it refers to being allowed to do something where demystified refers to unearth mystery around something. Both of se words are out of context here whereas free cannot be used here as antonym because it is not correct as antonym of given word as used in statement. option A is only option that can be considered as antonym of given word.

Refer to, “Insurance regulator IRDAI has allowed distribution of all micro-insurance products through point-of-sales (PoS), with an aim furr increase insurance penetration in country.”

It is clear that only objective of IRDAI to allow distribution of micro insurance policies through POS channel is aim of authority to increase insurance coverage in country and moreover micro insurance policies are meant for backward people only, so, it would be great to make m available through this channel of distribution.

Among given options, option A is not correct since it does not give actual reason of decision of IRDAI to allow POS channel to start distribution of micro insurance policies whereas option B is also not correct since sentence itself does not make any sense and can be eliminated easily. Option C is not correct since this is not correct as per information given in passage. Only option explains correct reason of decision taken by IRDAI regarding distribution of micro insurance policies.