Module: General Practice
Q67: Consider the following account holding patterns to determine insurance coverage limits:
Account A is held by "Mr. X and Mr. Y" (Jointly).
Account B is held by "Mr. X, Mr. Y, and Mr. Z" (Jointly).
Account C is held by "Mr. Y and Mr. X" (Jointly, names reversed).
How many separate insurance limits of Rupees 5 Lakh are applicable here?
Account B is held by "Mr. X, Mr. Y, and Mr. Z" (Jointly).
Account C is held by "Mr. Y and Mr. X" (Jointly, names reversed).
How many separate insurance limits of Rupees 5 Lakh are applicable here?
✅ Correct Answer: C
3 separate limits are applicable.
The rule of Distinct Ownership Groups applies here.
The Rule: A joint account's "capacity" is determined by the exact combination and order of names.
Account A (X and Y): This is Unique Group 1. It gets a Rupees 5 Lakh limit.
Account B (X, Y, and Z): This is Unique Group 2 (The presence of Z makes it distinct). It gets a separate Rupees 5 Lakh limit.
Account C (Y and X): This is Unique Group 3 (The order of names is different; The first holder is Y, not X). Under DICGC rules, a change in the order of names constitutes a different capacity.
It gets a separate Rupees 5 Lakh limit.
The rule of Distinct Ownership Groups applies here.
The Rule: A joint account's "capacity" is determined by the exact combination and order of names.
Account A (X and Y): This is Unique Group 1. It gets a Rupees 5 Lakh limit.
Account B (X, Y, and Z): This is Unique Group 2 (The presence of Z makes it distinct). It gets a separate Rupees 5 Lakh limit.
Account C (Y and X): This is Unique Group 3 (The order of names is different; The first holder is Y, not X). Under DICGC rules, a change in the order of names constitutes a different capacity.
It gets a separate Rupees 5 Lakh limit.