Question Bank

2 questions

• Economy & Banking16 May 2026

  Which of the following best explains how the BMI Pool reduces India's forex outflow?

  1. A.By retaining marine reinsurance premiums domestically that would otherwise flow to London and other foreign re/insurance markets
  2. B.By directly buying foreign currency from the RBI's reserves at concessional rates
  3. C.By imposing capital controls on Indian shipowners' foreign payments
  4. D.By replacing all FDI in India's shipping sector
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  Answer: A. By retaining marine reinsurance premiums domestically that would otherwise flow to London and other foreign re/insurance markets

  The Pool **retains domestically** a larger share of marine reinsurance premiums and claims flows that would otherwise be ceded to **London and other foreign re/insurance hubs**, reducing **forex outflow**. The other options describe instruments — capital controls, RBI FX sales, FDI — that are not how a reinsurance pool functions.

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• Economy & Banking16 May 2026

  The Bharat Maritime Insurance Pool (BMI Pool) is administered as Pool Administrator by which entity?

  1. A.General Insurance Corporation of India (GIC Re), the country's state-owned reinsurer
  2. B.Life Insurance Corporation of India (LIC), the largest Indian life-insurance company
  3. C.Reserve Bank of India (RBI), the central banking authority of the Government of India
  4. D.Shipping Corporation of India (SCI), a navratna shipping company under the central government
  Show solution

  Answer: A. General Insurance Corporation of India (GIC Re), the country's state-owned reinsurer

  The **Pool Administrator** of the BMI Pool is **GIC Re**, India's state-owned national reinsurer. **LIC** is a life insurer, **RBI** is the central bank, and **SCI** is a shipping operator — none of them administer the Pool.

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