1. In the insurance context 'risk' means
a) possibility of loss or damage
b) loss producing event
c) property covered by insurance
d) All the above
2. Which of the following statements is true
a) Insurance protects the asset
b) Insurance prevents its loss
c) Insurance reduces possibilities of loss
d) Insurance pays when there is loss of asset
3. Out of 400 houses, each valued at Rs.20,000, 4 houses
get
burnt every year on an average resulting in a loss of
Rs.80,000.
What should be the annual contribution of each house
owner
to make good this loss.
a) Rs. 100/-
b) Rs.200/-
c), Rs.80/-
d) Rs.400/-
4. Which of the following statements is true.
I . Insurance is a method of sharing the losses
of a'few' by
the 'many'.
2. Insurance is a method of transferring the risk
of an
individual to a group of individuals
a) Only Statement 1
b) Only Statement 2
c) Both Statements
d) I Neither of the Statements
5. Which of the following statements is true.
1. Insurance prevents the losses from happening
2. Insurance spreads the losses amongst the insureds
a) Only Statement l
b) Only Statement 2
c) Both Statements
d) Neither of the Statements
6. To which of the following does the Employees State
Insurance Act, 1948 apply?
a) Employees of Central Government
b) Employees of State Government
c) Employees of Public Sector manufacturing companies
d) Industrial employees as notified by the Government
7. Which of the following provide(s) Social Security?
a) Crop insurance Scheme (RKBY)
b) Janta Personal Accident
c) Jan Arogya
d) All above
8. Which of the following statements is true?
1. Insurance provides direct benefits to individuals
2. Insurance provides indirect benefits to the community
a) Only Statement 1
b) Only Statement 2
c) Both Statements
d) Neither of the Statements
9. Which of the following statements is true?
a) Insurance facilitates free investment of capital in
business
b) Insurance encourages commercial and industrial development
c) Insurance contributes to national productivity
d) All above
CHAPTER 2
1. Which of the, following is/are requisites of a valid
insurance contract.
a) Consideration
b) Parties of same mind
c) Parties competent to contract
d) All the three|D|2|
2. Which of the following statements is correct according
to law.
a) The parties to a commercial contract have to
observe good faith
b) The parties to an insurance contract have to observe
utmost good faith
c) Both these
d) Neither of these|C|2|
3. Which of the following is not the correct reason
for Insurer requiring matedal information?
a) to decide about acceptance
b) to fix the rate of premium
c) to fix the sum insured
d) to fix terms and conditions of cover|C|2|
4. Which of the following is/are material fact(s)?
a) The fact that previous insurers had
rejected the proposal
b) The fact that previous insurers charged
extra premium
c) The fact that previous insurers had
refused to renew the policy
d) All the three|D|2|
5. The role of disclosure of material facts
a) ceases when the policy is issued
b) arises again at the time of renewal of the policy
c) Both these
d) Neither of these|C|2|
6. Which of the following makes the contract unenforceable
in a Court of Law?
a) the proposer has committed non-disclosure
b) The proposer has committed mis-representation
c) The proposer has given wrong address of property due
to a clerical error
d) The policy is not stamped as per Indian Stamp Act|D|2|
7. Which of the following statements is correct?
a) A void contract has no legal validity
b) A voidable contract remains a contract until the insurer
exercises his option to void the contract
c) Both above
d) Neither of above|C|2|
8. The duty of disclosure of material information
a) applies to insured
b) applies to the agent
c) applies to the insurer
d) all three|D|2|
9. If there is no insurable interest the in becomes -
a) unenforceable in a Court of Law
b) illegal
c) void
d) voidable|C|2|
10. Insurable Interest is not always required at the time
of taking the policy of:
a) fire insurance
b) marine hull insurance
c) marine cargo insurance
d) burglary insurance|C|2|
11. Consent of insurers is not required for the assignment
of :
a) marine hull policies
b) marine cargo policies
c) fire policies
d) burglary policies|B|2|
12. The object of the principle of indemnity is to
:
a) pay the full cost of repairs
b) pay the full cost of replacement
c) pay the cost of reinstatement
d) prevent the insured from making any profit
out of his loss|D|2|
13. Agreed Value policies are issued for :
a) marine cargo
b) marine hull
c) marine cargo and hull
d) fire insurance on high valued machinery|C|2|
14. Sum insured under an insurance policy means
:
a) it is the agreed value of subject matter insured
b) the amount payable when there is a loss
c) the amount on which the premium is calculated
d) the maximum limit of liability under the policy|D|2|
15. Which of the following can be granted valued policies
in fire insurances?
a) Curios
b) Works of art
c) Obsolete machinery
d) All these|D|2|
16. Which of the following ensure that the amount of claim
payable is less than the actual amount of loss?
a) pro-rata average
b) 'excess' limit
c) salvage
d) All these|D|2|
17. Which of these statements is correct?
a) Subrogation under common law is implied in
contracts of indemnity.
b) Subrogation under common law arises only after payment
of loss
c) Both are correct
d) Both are incorrect|C|2|
18. Subrogation condition does not appear
in :
a) Fire policy
b) marine cargo policy
c) Burglary policy
d) Baggage policy|B|2|
19. Which of the following statements is correct?
a) Subrogation does not arise in personal accident
insurance
b) Contribution does not arise in personal accident
insurance
c) Both are correct
d) Neither is correct|C|2|
20. Proximate cause has to be selected :
a) when two or more causes operate simultaneously
b) when two or more causes operate one after another
c) when insured peril and excluded peril operate together
d) all three|D|2|
21. Which of the following does not affect the amount
of loss payable under the policy.
a) Breach of utmost good faith
b) Salvage
c) Pro-rata average
d) 'Excess' clause|A|2|
22. Insurance contracts are not gambling transactions
because :
a) they are based on insurable interest
b) the policy is stamped
c) full premium is paid
a) all material facts are disclosed|A|2|
23. if an insurance poiicy is not stamped as per Indian
Stamp Act, the contract becomes
a) illegal
b) void
c) voidable
d) unenforceable in a Court of Law|D|2|
24. When there is fraudulent breach of utmost good faith,
the insurance contract becomes :
a) unenforceable in a Court of Law
b) illegal
c) void
d) voidable|C|2|
25. The contractual duty of utmost good faith applies
a) to motor insurance only
b) to marine cargo insurance only
c) to fire insurance only
d) all insurances where proposal form with a declration
clause is used|D|2|
26. Which of the following documents have to be stamped
as per Indian Stamp Act?
a) Endorsement on a fire policy increasing the sum insured.
b) Marine open cover for export shipments
c) Both these
d) Neither of these|D|2|
27. Which of the following statements is true?
a) No claim can be paid under an illegal policy
b) Claim can be paid, at the option of the insurer
under a void policy
c) Both are true
d) Both are false|A|2|
28. If there is a non-disclosure of a material fact due
to oversight, the insurance contract becomes :
a) void
b) voidable
c) illegal
d) invalid|B|2|
29. The principle of utmost good faith requires the proposer
to disclose material facts :
a) which he knows
b) which he ought to know
c) which he knows and ought to know
d) none of the above|C|2|
30. Which of the following statements is true?
a) The proposer need not disclose facts which he considers
as not material.
b) Facts which are of common knowledge need not be
disclosed.
c) Both are true
d) Both are false|B|
31. Which of the following is an evidence of insurance
contract :
a) Payment of premium
b) Acceptance of proposal
c) Insurers' Prospectus
d) Insurance Policy|D|2|
32. Which of the following statements is true?
a) In fire insurance insurable interest is required both
at the time of taking the policy and at the time of
loss.
b) In marine hull insurance insurable interest is required
both at the time of taking the policy and at the time
of loss.
c) Both are true
d) Both are false|C|2|
33. Transfer of rights and liabilities of an insured to
another person who has insurable interest is known
as :
a) Consideration
b) Subrogation
c) Assignment
d) Endorsement|C|2|
34. Which of the following principles prevents an insured
from making a profit out of his loss?
a) Proximate cause
b) Pro-rata average
c) Indemnity
d) Insurable interest|C|2|
35. The legal right to insure means :
a) consideration as per Indian Contract Act
b) competence as per Indian Contract Act
c) assignment
d) insurable interest|D|2|
36. In which of the following insurances the principle
of indemnity is modified?
a) Public Liability
b) Fidelity Guarantee
c) Marine Cargo
d) Baggage Insurance|C|2|
37. An insured cannot recover more than his actual loss
because of :
a) under-insurance
b) excess clause
c) principle of indemnity
d) franchise clause|C|2|
38. In which of the following policies, the principle
of indemnity is modified?
a) Fire Declaration policy
b) Fire Floating policy
c) Fire Reinstatement policy
d) Fire loss of profits policy|C|2|
39. Which of the following is not a contract of indemnity
in the strict sense?
a) Mediclaim insurance
b) Personal accident insurance
c) Fidelity guarantee
d) Burglary insurance|B|2|
40. The principle of indemnity arises under the :
a) Insurance Act 1938 (as amended)
b) IRDA Act
c) Indian Contract Act
d) Common Law|D|2|
41. Which of the following statements is true?
a) Marine Cargo policies are valued policies
b) Marine Hull policies are valued policies
c) Both are false
d) Both are true|D|2|
42. The principle of indemnity is applied through deduction
:
a) for under insurance
b) for depreciation
c) under franchise clause
d) under excess clause|B|2|
43. Under which of the following clauses, the insured
has to bear a part of the loss?
a) Pro-rata average
b) Franchise clause
c) Excess clause
d) All the above clauses|D|2|
44. The principle of Subrogation applies under
:
a) products liability policy
b) fidelity guarantee policy
c) fire policy
d) All the above|D|2|
45. When there are several po1icies on the same subject
matter, each insurer pays only a proportion of the
loss. This is known as :
a) pro-rata average
b) franchise
c) contribution
d) subrogation|C|2|
46. Which of the following statements is true?
a) Contribution applies only to contracts of indemnity
b) Contribution does not apply to personal accident
insurance
c) Both are true
d) Both are false|C|2|
47. How much is the amount of claim payable, if sum insured
is Rs 2 lakhs, the 'excess' limit is Rs20,000 and
the loss is Rs25,000/-.
a) Rs20,000
b) Rs25,000
c) Rs15,000
d) Rs5000|D|2|
48. What is the amount of claim payable if the loss is
Rs8,000 under a policy with a sum insured of Rs 1 lakh and excess limit
is Rs10,000/-?
a) Nil
b) Rs10,000
c) Rs.8,000
d) Rs.2,000|A|2|
49. A Policy with a sum insured of Rs 1 lakh is subject
to a 'franchise' limit of Rs.10,000/.. What is the amount payable if the
loss is Rs15,000/- ?
a) Rs15,000/
b) Rs5,000/-
c) Rs25,000/-
d) Nil|A|2|
50. A policy with a sum insured of Rs 1 lakh is subject
to a 'franchise' limit of Rs 10,000/-. What is the amount of claim payable
if the loss is Rs5,000/- ?
a) Rs10,000
b) Rs15,000
c) Rs5,000
d) Nil|D|2|
CHAPTER 3
1. As per the IRDA Regulations in which of the following
insurance, written proposal is not necessary.
a) Fire insurance on Cargo industrial risks
b) Marine cargo insurance
c) Compulsory public liability
d) Fidelity Guarantees|B|3|
2. Which of the following questions is common to all forms.
a) Proposer's previous insurance
b) Proposer's Present insurance
c) Past losses
d) All thee|D|3|
3. The Purpose of the Proposal form is to Provide for
a) material information
b) declaration that the answers are true and accurate
c) agreement of the insured that the form shall be the
basis of the insurance contract.
d) All these|D|3|
4. In which of the following clauses of the 'Scheduled'
form of Policy, the parties to the contract are mentioned?
a) Signature clause
b) Operative clause
c) Recital clause
d) Warranties clause|C|3|
5. In which of the following clauses of the 'Scheduled'form
of Policy reference is made to the sum insured or
limit of liability?
a) recital clause
b) Operative clause
c) signature clause
d) Warranties clause|B|3|
6. If a warranty is breached the Policy becomes:-
a) void
b) voidable
c) invalid
d) unenforceable in a Court of Law|B|3|
7. Certificates of insurance are issued in:
a) marine hull insurance
b) marine cargo insurance
c) engineering insurance
d) workmen's compensation insurance|B|3|
8. In motor insurance, Certificates of insurance are issued
because:
a) Make of vehicle is not known
b) Year of manufacture is not known
c) Seating capacity is not known
d) It is required by the Motor Vehicles Act
9. Which of the following statements is true?
a) Endorsements are issued at the time of issuing the
policy as part of the policy
b) Endorsements are issued after the policy to record
alterations
c) Both are true
d) Both are false|C|3|
10. Renewal notice is issued because:
a) it is required under the Insurance Act
b) of IRDA Regulations
c) it is a healthy business practice
d) it is provided by policy conditions|C|3|
CHAPTER 4
1. Which of the following is paid out of pure premium?
a) Lossses
b) Agency Commission
c) Expenses of management
d) Unexpected heavy losses|A|4|
2. Rate of premium is based on
a) degree of hazard
b) variations in degree of hazard
c) past loss experience
d) All the above|D|4|
3. To arrive at final rate by loading the pure rate, which
of the following is not taken into account.
a) past losses
b) Unexpected heavy losses in the future
c) margin for expenses of management
d) margin for profits|A|4|
4. Final rate of premium is arrived at by loading the
pure rate of premium to provide for
a) commission to intermediaries
b) expenses of management
c) margin for profit
d) All these|D|4|
5. After withdrawal of Tariffs w.e.f. 01 January, 2007,
insurers cannot charge their own rates for which of the following classes
of insurance.
a) fire insurance
b) engineering insurance
c) motor third party insurance
d) workmen's compensation insurance|C|4|
6. Which of the following statements is true for for motor
third party policies?
a) Insurers charge premium fixed by IRDA.
b) Insurers can charge higher rates based on their own
past loss experience.
c) Both are true
d) Both are false|A|4|
7. Under IRDA guidelines, which of the following policies
does not fall under Internal Tariff rated products?
a) Burglary insurance
b) Fidelity insurance
c) Personal accident insurance
d) Group health insurance|D|4|
8- Under IRDA guidelines which Of the following policies
fall under Package or Customised Products?
a) Homeowner's Comprehensive
b) Shopkeeper,s Comprehensive
c) Bankers Blanket
d) All above|D|4|
9- Under IRDA guidelines which of the following
Policies fall under Individual and Experience rated
Products?
a) Group Personal Accident
b) Group Health
c) Motor Fleets
d) All the above|D|4|
10. Under IRDA guidelines which of the following
Policies fall under Exposure Rated Products?
a) Earthquake risk
b) Policies with a sum insured of
Rs2500 crores or more at one location for material
damage
c) Policies with a sum insured of Rs.2500 crores or More
at one location for combined material damage or business interruption
d) Liability insurance (Rs 100 crores or more per event)|A|4|
CHAPTER 5
As per the Insurance Act, 1938 (as amended) an insurer
has to obtain a report from a licensed surveyor if the loss equals or
exceeds:
a) Rs15,000
b) Rs20,000
c) Rs25,000
d) Rs50,000|B|5|
2. Which of the following is true?
No insurer shall assume any risk unless and until:
a) the premium is received in advance
b) the premium is guaranteed to be paid.
c) A deposit is made in advance
d) Any of these|D|5|
3. Which of the following is/are the function(s) of IRDA?
a) To regulate the rates of premium offered by insurers.
b) T0 regulate investment of funds by insurance companies.
c) Both these
d) Neither of these|C|5|
4. As per IRDA regulations, maximum brokerage or commission
that can be paid by insurers in rrespect of policy through agents or brokers
is:
a) 10%
b) 15%
c) 20%
d) 30%|D|5|
5. Which of the following is/are the function(s) of IRDA?
To protect the interests of policyholders in matters of :
a). settlement Of claims
b) fair and equitable rates of premium
c) terms and conditions of insurance
d) All these|D|5|
6. As per General Insurance (Nationalisation) Amendment
Act 2002, General Insurance Corporation of India shall carry on:
a) Reinsurance business only
b) Overseas reinsurance business only
c) Aviation insurance business only
d) Administration of motor third party insurance
pool only|A|5|
7. Which of the following statements is true under Code
of conduct for Agents?
a) The Agent must show his licence to the prospect on
demand
b) The Agent must disclose the scales of commission under
policies offered for sale, if asked by the prospect.
c) Both are true
d) Both are false|C|5|
8. As per the Code of Conduct, the agent must inform
promptly the prospect about:
a) the acceptance of the proposal by the insurer
b) the rejection of the proposal by the insurer
c) Both are true
d) Both are false|C|5|
9. As per Code of Conduct, what is the ceiling % of the
total premium, a corporate agent can procure in his portfolio, of
insurance business from one organization?
a) 20%
b) 30%
c) 40%
d) 50%|D|5|
10. An insurance agent licence has been cancelled by the
designated person. When can he apply again for fresh licence?
a) After 3 years
b) After 4 years
c) After 5 years
d) After 6 years|C|5|
11. Under IRDA guidelines which of the following is eligible
to become a Corporate agent?
a) a banking company
b) a cooperative society
c) a non-government organisation
d) All these|D|5|
12. Who among the following is eligible to be nominated
'Corporate Insurance Executive' by a corporate agent?
a) a partner (in the case of a firm)
b) a director (in the case of a company)
c) one or more of its officers
d) All the above|D|5|
13. Which of the following statements is true?
a) Code of Conduct applies to corporate insurance executives
b) Code of Conduct applies to 'specified persons' of
corporate agents
c) Both are true
d) Neither is true|C|5|
14. Which of the following statements is true?
a) Corporate insurance executive has to undergo training
and pass the licensing examination
b) 'Specified persons' have to undergo training and pass
the licensing examination
c) Both are true
d) Neither is true|C|5|
15. 'Specified persons' nominated for soliciting insurance
business by a corporate agent can be
a) one or more of its partners
b) one or more of its directors
c) one or more of its employees
d) All these|D|5|
16. IRDA Advertisement Regulations apply to :
a) insurance companies
b) insurance brokers
c) insurance agents
d) All these|D|5|
17. Which of the following is not a function of a direct
broker as per IRDA Regulations?
a) advise clients on appropriate cover and terms
b) submit insurers premium quotation to client
c) pay premium to insurers on behalf of client
d) assist in negotiation of claims|C|5|
18. Which of the following is/are functions of direct
broker as per IRDA Regulations?
a) to provide advice to client on appropriate covers
b) to provide underwriting information to insurers
c) to provide insurance consultancy service
d) All these|D|5|
19. Which of the following statements is true?
a) Code of Conduct does not apply to insurance brokers
b) Code of Conduct does not apply to surveyers and loss
assessors
c) Both are true
d) Both are false|D|5|
20. As per IRDA Regulations which of the following is
not a function of Third Party Administrators?
a) collection of premium
b) collection of claims documents
c) claims scrutiny and processing
a) claims payment|A|5|
21. Third Party Administrator's 'cashless services' mean
:
a) admission to a specified hospital without admission
fees payment
b) admission to a specified hospital without deposits
c) discharge from specified hospital without payment
of covered expenses of treatment
d) all these|D|5|
22. Under IRDA Regulations it is the duty of an insurer
to furnish to the insured free of charge a copy of the Proposal form, within
how many days of the acceptance of a proposal?
a) 7 days
b) 15 days
c) 30 days
d) 45 days|C|5|
23. As per IRDA Regulations, after receipt of claim intimation
from the insured a Surveyor has to be appointed within :
a) 24 hours
b) 72 hours
c) 7 days
d) 15 days|B|5|
24. As per IRDA Regulations Surveyor shall submit,the
survey report to the insurer within :
a) 15 days of his appointment
b) 30 days of his appointment
c) 45 days of his appointment
d) 60 days of his appointment|B|5|
25. After receipt of survey report, Insurer shall
offer a settlement of claim to the insured within a period of :
a) 15 days
b) 30 days
c) 45 days
d) 60 days|B|5|
26. After receipt of the survey
report, rejection of claim by the insurer shall be communicated to the
insured within a period of :
a) 15 days
b) 30 days
c) 45 days
d) 60 days|B|5|
27- On acceptance of offer of settlement by the insured,
insurer shall make the payment within :
a) 7 days
b) 10 days
c) 15 days
d) 30 days|A|5|
28. In matters of servicing under the policy, after receipt
of communication from policyholders, an insurer shall
respond within :
a) 3 days
b) 7 days
c) 10 days
d) 15 days|C|5|
29- Micro-insurance product under IRDA Regulations means
:
a) a health insurance contract
b) a personal accident contract
c) a livestock insurance contract
d) All these|D|5|
30. Micro-insurance agent under the IRDA regulations means
:
a) a non-government organization
b) a self help group
c) a micro-finance group
d) All these|D|5|
31. Which of the following statements is true?
a) A life insurer may offer life micro-insurance product
as well as general micro-insurance products
b) A general insurer may offer general micro-insurance
product as also life micro-insurance products.
c) Both are true
d) Both are false|C|5|
32. Which of the following statements is true?
a) A micro-agent shall not distribute any product other
than a micro-insurance product.
b) A micro-agent shall not work for more than one life
insurer and one general insurer.
c) Both are true
d) Both are false|C|5|
33. Which of the following are allowed, under the regulations,
to distribute micro-insurance products?
a) individual agents
b) corporate agents
c) brokers
d) all these|D|5|
34. Which of the following statements is true?
a) Code of conduct regulations apply to micro-insurance
agents
b) Advertisement regulations apply to micro-insurance
agents
c) Both are true
d) Both are false|C|5|
35. As per IRDA Regulations, the remuneration to the miccoinsurance
agent for non-life insurance business shall not exceed :
a) 5% of premium
b) 10% of premium
c) 15% of premium
d) 20% of premium|C|5|
36. Consumer Protection Act applies to :
a) private sector
b) public sector
c) cooperative sector
d) All these|D|5|
37. A District Forum under the Consumer Protection Act
can entertain a complaint where the compensation claimed
is less than :
a) 10 lakhs
b) 20 lakhs
c) 30 lakhs
d) 50 lakhs|B|5|
38. The National Commission under Consumer Protection
Act can entertain a complaint where the compensation
claimed exceeds :
a) Rs 25 lakhs
b) Rs 50 lakhs
c) Rs 75 lakhs
d) Rs 1 crore|D|5|
39. Which of the following statements is true?
a) State Commission can entertain appeals against the
order of the District Forum.
b) National Commission can entertain appeals against
the order of the State Commission.
c) Both are true
d) Both are false|C|5|
40. After the date of order, an appeal against the order
of the National Commission can be made within a period of :
a) 30 days
b) 45 days
c) 60 days
d) 90 days|A|5|
41. Which of the following statements is true?
a) Redressal of Public Grievances Rules apply to life
and general insurance.
b) These Rules apply to personal lines insurance only.
c) Both are true,
d) Both are false|C|5|
42. Which of the following complaints cannot be made to
the Ombudsman?
a) Total repudiation of claim by insurer
b) Partial repudiation of claim by insurer
c) Delay in settlement of claims
d) Premium rates are high|D|5|
43. No complaints to the Ombudsman shall be valid :
a) if the complaint is made later than one year after
the insurer had rejected the representation
b) if the complaint is pending in any Consumer Forum
c) if the complaint is subject of arbitration
d) All the above|D|5|
44. Which of the following are grounds for filing a complaint
to the Ombudsman?
a) insurer had rejected the complaint
b) complainant had not received any reply to his written
representation to the insurer within one month after receipt of complaint
c) the complainant is not satisfied with the insurer's
repl
d) All these|D|5|
45. Which of the following is true as per the Redressal
of Public Grievances Rules?
a) The Award should not be more than Rs.20 Iakh
b) The Award should be made within three months from
the date of complaint
c) Both are true
d) Both are false|C|5|
CHAPTER 6
1. Which of the following is not insured under Standard
Fire & Special perils policy?
a) Goods in factories
b) Goods in open
c) Goods in transit by rail / road
d) Goods in godowns|C|6|
2. The term 'Fire 'under the fire policy means:
a) natural heating
b) burning by order of public authority
c) spontaneous combustion
d) accidental ignition|D|6|
3. Which of the following are covered in fire insurance?
a) raw materials
b) semi-finished goods
c) packing materials
d) All these|D|6|
4 Which of the following statements is true?
a) Explosion is covered under Standard Fire and Special
Perils policy.
b) Implosion is covered under Standard Fire and Special
Perils policy.
c) Both these
d) Neither of these|C|6|
5. Which of the following meanings of Aircraft damage
is not correct?
a) damage by aircraft
b) damage by other aerial devices
c) damage by pressure waves
d) damage by other space devices|C|6|
6. Which of the following statornents is true?
a) Terrorism is included in Riot, Strike and Malicious
Damage.
b) Terrorism is a separate cover at extra premium without
Riot, Strike and Malicious Damage
c) Both are true
d) Both are false|C|6|
7. Terrorism cover for industrial risks is subject to
a deductible value of:
a) 0.5% of total sum insured
b) 1.0% of total sum insured
c) 2.0% of total sum insured
d) 3.0% of total sum insured|A|6|
8. Which of the following is not impact damage covered
under Standard Fire and Special Perils? Visible physical damage by direct
contact with:
a) any road vehicle
b) any rail vehicle
c) insured's own forklift on the premises
d) any animal|C|6|
9. Which of the following is not
covered under Standard Fire and Special perils policy?
a) Cyclone
b) Hurricane
c) Earthquake
d) Flood|C|6|
10. Subsidence covered under standard Fire & Special
perils policy means:
a) normal cracking
b) settlement
c) bedding down of new structures
d) Subsidence of part of the site on which the party
stands|D|6|
11. The deductible for Act of God perils under Standard
Fire and Special perils policy is :
a) 1 % of each and every loss
b) 3% of each and every loss
c) 4% of each andevery loss
d) 5% Of each and every loss|D|6|
12. The deductible for perils other than Act of God perils
under Standard Fire and Special perils policy is :
a) Rs5,000/- for each and every loss
b) Rs10,000/- for each and every loss
c) Rs15,000/- for each and every loss
d) Rs20,000/- for each and every loss|B|6|
13. Which of the following is true under Standard Fire
and Special perils policy?
a) Pollution which itself results from an insured peril
is covered
b) Insured peril which itself results from pollution
is covered
c) Both are true
d) Both are false|C|6|
14. The Standard Fire and Special perils policy automatically
covers works of art for an amount not exceeding :
a) Rs.5,000/.
b) Rs.10,000/_
c) Rs.20,000/-
d) Rs.25,000/-|B|6|
15. Which of the following statements is true?
a) All disputes regarding claim under the fire policy
are to be referred to a Civil Court
b) Disputes regarding the amount of claim payable are
to be referred to arbitration.
c) Both are true
d) Both are false|B|6|
16. The maximum limit of cover under Architects' Fees
'add-on' cover is :
a) 2.5% of the adjusted loss
b) 5% of the adjusted loss
c) 7.5% of the adjusted loss
d) 10% of the adjusted loss|C|6|
17. Under fire policy, the sum insured under Debris Removal
add-on cover cannot exceed :
a) 5% of total sum assured
b) 10% of total sum assured
c) 15% of total sum assured
d) 20% of total sum assured|B|6|
18. Which of the following is paid under Dobris Removal
Add-on cover?
a) costs of removal of debris
b) costs of dismantling
c) costs of demolishing
d) All these|D|6|
19. Which of the following is covered under fire
policy at extra premium?
a) Impact damage
b) Bush fire
c) Forest fire
d) Subsidence|C|6|
20. According to Policy condition, the fire policy ceases
cover if the building insured becomes unoccupied for more than :
a) 15 days
b) 30 days
c) 45 days
d) 60 days|B|6|
21. Under fire policy, pro-rata average
applies when there is :
a) double insurance
b) over insurance
c) under insurance
d) subrogation|C|6|
22. Which of the following property is covered under the
fire policy if expressly stated in the policy?
a) books of account
b) business books
c) computer system records
d) all these|D|6|
23. If liability for a claim under the fire Policy is
disclaimed by the insurer, the insured has to file a suit in a court of
Law within :
a) 6 months from the date of disclaimer
b) 12 months from the date of disclaimer
c) 24 months from the date of disclaimer
d) 36 months from the date of disclaimer|B|6|
24. which of the following is excluded under Deterioration
of Stocks add-on cover to the fire policy?
a) act of government
b) act of municipal authority
c) rationing, etc. of power supply
d) none of these|D|6|
25. Which of the following perils can be an 'add-on'cover
at extra premium under the Standard Fire and Special
perils policy?
a) Flood
b) Explosion
c) Earthquake
d) Cyclone|C|6|
26. Which of the following perils is not covered under
Standard Fire and Special perils policy?
a) Flood
b) Subsidence
c) Bush Fire
d) Forest Fire|D|6|
27. Under Standard Fire and Special perils policy, Debris
Removal expenses are covered upto :
a) 1 % of the claim amount
b) 2% of the claim amount
c) 3% of the claim amount
d) 4% of the claim amount|A|6|
28. Under Standard Fire and Special perils policy, Architect's
fees are covered upto :
a) 1 % of the claim amount
b) 2% of the claim amount
c) 3% of the claim amount
d) 4% of the claim amount|C|6|
29. Which of the following statements is true?
a) Terrorism is an exclusion under the Standard Fire
and Special perils policy.
b) Terrorism can be covered at extra premium along with
Riot, Strike and Malicious Damage
c) Both are true
d) Both are false|C|6|
30. Which of the following statements is true?
As per fire policy condition on the happening of a loss :
a) Insurers have a right to take possession of
the prermises where the loss has occurred
b) the insured can abandan the damaged property to the
insurers
c) Both are true
d) Both are false|A|6|
31. Under fire policy sum insured
is Rs1,00,000/-, Loss is Rs.60,000/-, Value of property at the time of
proposal Rs1,50,000/ Value of property at the time
of loss Rs.2,00,000.
What is the amount of loss payable?
a) Rs40,000/-
b) Rs30,000/-
c) Rs.60,000/-
d) Nil|B|6|
32. Which of the following commodities are susceptible
to spontaneous combustion :
a) groundnuts
b) copra cake
c) dyes and chemicals
d) All the above|D|6|
33. Under Earthquake add-on cover, what is the excess
value of each and every claim?
a) 2%
b) 3%
c) 4%
d) 5%|D|6|
34. Which of the following is not covered under Spoilage
Material Damage extension?
a) loss of stock in process
b) loss of stock in godowns
c) damage to machinery
d) damage to containers & equipment|B|6|
35. Escalation clause added to the fire policy allows
automatic regular increase in sum insured throughout the period of the
policy, not exceeding :
a) 5%
b) 10%
c) 25%
d) 50%|C|6|
36. Which of the statements is true under fire insurance?
a) Escalation clause applies to buildings and machinery
only.
b) Escalation clause applies to fluctuating stocks.
c) Both statements are true
d) Both statements are false|A|6|
37. Which of the following is not covered under fire floating
policy?
a) stocks in process blocks
b) stocks in godown
c) stocks in the open
d) stocks in transit|D|6|
38. Where there is frequent fluctuations in stocks / stock
values, which of the following provides suitable cover?
a) Fire floating policy
b) Fire policy with Escalation clause
c) Fire Reinstatement Value policy
d) Fire Declaration policy|D|6|
39. The minimum retention of premium under fire declaration
policy is :
a) 10% of the annual premium
b) 25% of the annual premium
c) 50% of the annual premium
d) 75% of the annual premium|C|6|
40. Sum insured (provisional) under fire declaration policy
is Rs100,00,000/-. Rate of premium is Re1.00 per mille.
Average sum insured is Rs50,00,000. The
refund premium is :
a) Rs5,000/-
b) Rs.6,000/
c) Rs.10,000/-
d) Nil|A|6|
41. Fire reinstatement value policy is not issued in respect
of :
a) building
b) plant
c) machinery
d) stock|D|6|
42. Under which of the following circumstances market
value only is payable under Fire reinstatement value policy?
a) insured is unwilling to reinstate
b) heavy under insurance
c) breach of warranty
d) breach of utmost good faith|A|6|
43. Under which of the following circumstances, reinstatement
basis of settlement will not apply under Fire reinstatement
value policy?
a) insured fails to intimate the insurer within 6 months
or any extended time to replace the damaged property
b) insured is unable to replace the damaged property
c) insured is unwilling to replace the damaged property
d) All the above three|D|6|
44. Which of the following is correct in relation to fire
reinstatement value policy?
a) Depreciation applies to claims
b) Pro-rata average applies
c) Both are true
d) Both are false|B|6|
45. Fire Reinstatement value policy is granted on :
a) Buildings and machinery only
b) Stocks only
c) Both Statements are not correct
d) Both Statements are correct|A|6|
46. Of the following which is an optional cover under
Industrial All Risks policy?
a) Machinery Breakdown policy
b) Electronic Equipment policy
c) Business Interruption (Machinery Breakdown)
d) Business Interruption (Fire & Special Perils)|C|6|
47. Fire Consequential loss policy pays the insured
:
a) net profit
b) standing charges
c) increased cost of working
d) all the above three|D|6|
48. The turnover of a business consists of :
a) variable charges and standing charges
b) standing charges and net profit
c) variable charges and net profit
d) variable charges, standing charges and net profit|D|6|
49. Gross Profit, in the context of consequential loss
(fire) policy means :
a) Turnover minus variable and standing charges
b) Net profit and cost of production
c) Net profit and standing charges
d) Net profit and variable charges|C|
50. Which of the following statements is true?
a) The sum insured under consequential loss (fire) policy
is to be fixed by the insured.
b) The sum insured is to be computed from the insured's
accounts
c) Both are true
d) Both are false|C|6|
51. Turnover is Rs20 lacs. Cost of production Rs14 lacs,
Fixed overheads Rs4 lacs. Net Profit Rs2 lacs. Calculate the Sum insured
for a consequential loss (fire) policy?
a) Rs 10 lacs
b) Rs 18 lacs
c) Rs 2 lacs
d) Rs 6 lac|D|6|
52. Turnover is Rs 10 lacs. Cost of production Rs 7 lacs.
Fixed overheads Rs 2 lacs. Calculate the net profit for consequential loss
(fire) policy :
a) 1 lac
b) 3 lacs
c) 5 lacs
d) 8 lacs|A|6|
53. Which of the following statements is true?
a) The Indemnity Period is to be selected by the insured,
b) The period of indemnity may vary from 3 months to
3 years.
c) Both are true
d) Both are false|C|6|
54. Which of the following statements is true?
a) The sum insured under consequential loss (fire) policy
should be equal to gross profits of the Indemnity Period selected.
b) The sum insured should be equal to the net profits
of the Indemnity period selected.
c) Both are true
d) Both are false|A|6|
55. Annual amount of gross profit is Rs1,20,000. Calculate
the sum insured under Consequential loss (fire) policy for an Indemnity
Period of 24 months :
a) Rs60,000
b) Rs90,000
c) Rs1,20,000
d) Rs2,40,000|D|6|
56. Which of the following is not a standing charge under
Consequential loss (fire) policy?
a) Salaries
b) Office expenses
c) Cost of stationery
d) Cost of raw materials|D|6|
57. Which of the following are standing charges?
a) insurance premiums
b) rent
c) interest on loans from banks
d) All the above|D|
58. Annual gross profit is Rs1,20,000/-. Calculate the
sum insured under Consequential loss (fire) policy for a period of 9 months
:
a) Rs60,000/-
b) Rs90,000/
c) Rs1,20,000/-
d) Rs1,80,000/-|C|6|
59. Which of the following must occur before a loss under
Consequential loss (fire) policy becomes payable?
a) insured peril must occur
b) property damaged by the insured peril
c) insured's business is interrupted
d) All the above|D|6|
60. Which of the following Statements is true?
a) Consequential Loss (Fire) policy must be taken in
conjunction with Material Damage (fire) policy.
b) Payment of loss under Consequential Loss (Fire) policy
is subject to payment of loss under fire material damage policy.
c) Both are true
d) Both are false|C|6|
CHAPTER 7
1. Which of the following falls under marine cargo insurance?
a) export shipments
b) import shipments
c) rail/road consignments
d) All the above|D|7|
2. Under which of the following the
seller arranges cargo insurance for the entire voyage.
a) FOB contract
b) FOR contract
c) C&F contract
d) CIF contract|D|7|
3. Which of the following statements is true?
a) The seller is responsible for cargo insurance till
the goods are placed on board the steamer under FOB
sale contract.
b)The buyer is responsible for cargo insurance once the
goods are placed on board under C&F contract.
c) Both these
d) Neither of these|C|7|
4. Which of the following statements is true.
a) For export/import cargo policies, Institute Cargo
Clauses (I.C.C.) are used,
b) For inland transit consignments, local clauses are
used.
c) Both these
d) Neither of these|C|7|
5. Which of the following is covered under Institute Cargo
Clauses (ICC)?
a) fire
b) explosion
c) derailment of land conveyance
d) All these|D|7|
6. Which of the following statements is/are true.
a) General average sacrifice is covered under ICC(C)
b) Jettison is covered under ICC(C)
c) Both are true
d) Both are false|C|7|
7, Which of the following is not covered under Institute
Cago Clauses (C)?
a) Stranding of vessel
b) Washing overboard
c) Collision of vessel
d) Jettison|B|7|
8. Which of the following risks are covered under Institute
Cargo Clauses (B)?
a) Washing overboard
b) Total loss of package during loading
c) Earthquake
d) All these|D|7|
9. Which of the following falls under'Extraneous Risks'?
a) volcanic eruption
b) lightning
c) earthquake
d) rain water damage|D|7|
10- Which of the following falls under 'Extraneous Risks'?
a) Fresh water damage
b) Breakage
c) Leakage
d) All these|D|7|
11. Which of the following extraneous risks can be added
under ICC(B) clauses on payment of extra premium?
a) Heating
b) Sweating
c) Breakage
d) All these|D|7|
12. Which of the following statements is true?
a) ICC(B) & (C) provide specified risks cover
b) 1CC(A) Provides 'all risks' cover
c) Both statements are true
d) Both statements are false|C|7|
13. Malicious Damage is automatically covered under :
a) ICC(A) clauses
b) ICC(B) clauses
c) ICC(C) clauses
d) None of these|A|7|
14. Which of the following risks can be added to ICC(B)
clause on payment of extra premium :
a) Theft
b) Pilferage
c) Non-delivery
d) All these|D|7|
15. Which of the following exclusions does not appear
under ICC(A) clause?
a) inadequate packing
b) inherent vice
c) malicious damage
d) loss by delay|C|7|
16. Which of the following losses are not deemed to be
accidental losses?
a) Ordinary leakage
b) Ordinary wear and fear
c) inherent vice
d) All these|D|7|
17. Which of the following risks, excluded under ICC clauses
can be covered on payment of extra premium?
a) Loss by delay
b) Loss from insolvency of owners of the vessel
c) Loss due to inadequate packing
d) War and kindred perils|D|7|
18. After discharge from the vessel
at the final port of discharge, the cover under the
Transit Clause of ICC terminates on the expiry of :
a) 15 days
b) 30 days
c) 45 days
d) 60 days|D|7|
19. Which of the following statements is true?
a) The duration of cover for marine risks is for the
entire voyage on a warehouse to warehouse basis
b) The duration of cover for war risks is restricted
to the time when the goods are waterborne and not on land
c) Both are true
d) Both are false|C|7|
20. Which of the following statements is true?
a) The duration of cover for strikes, riot and civil
commotion applies during the entire voyage on a warehouse to warehouse
basis
b) The duration of cover for strike, riots and civil
commotion applies only when the goods are waterborne and not on
land
c) Both are true
d) Both are false|A|7|
21. Under Institute Cargo Clauses (AIR), the period of
cover after unloading of cargo from the aircraft at the final place of
discharge is limited to :
a) 15 days
b) 30 days
c) 45 days
d) 60 days|B|7|
22. Under Institute Cargo Clauses (AIR), at extra premium
:
a) war risks can be covered
b) strike, riots and civil commotion risks can be covered.
c) Both are true
d) Both are false|C|7|
23. Which of the following is not covered under Inland
Transit (Rail/Road) Clause B?
a) fire
b) lightning
c) breakage of bridges
d) non-delivery|D|7|
24. Under Inland Transit (Rail/Road) Clause B on payment
of extra premium :
a) war risks can be covered
b) strike, riots and civil commotion risks can be covered
c) Both are true
d) Both are false|B|7|
25. Under Inland Transit (Rail/Road) Clause B & A,
after arrival of the railway wagon at the final destination railway station,
the duration of cover terminates after :
a) 3 days
b) 7 days
c) 10days
d) 15 days|B|7|
26. Normal rates of premium apply for cargo carried in
vessels approved by following classification societies :
a) Lloyd's Register of Shipping
b) American Bureau of Shipping
c) Indian Register of Shipping
d) All these|D|7|
27. Under which of the following circumstances marine
cover note is issued :
a) Name of Steamer not known
b) Number and date of railway receipt is not known
c) Number of packages involved in transit are not known
d) All these|D|7|
28. Which of the following statements is true?
a) Certificate of insurance under open Policy is not
stamped.
b) Certificate of insurance under open cover is stamped.
c) Both are true
d) Both are false|C|7|
29. Which of the following statements is true?
a) Open policies are useful to cover inland consignments.
b) Open covers are useful to cover export/import shipments.
c) Both are true
d) Both are false|C|7|
30. The basis of valuation adopted under marine open cover
is the prime cost of goods, Costs of freight and insurance plus
:
a) 5% to cover profits
b) 10% to cover profits
c) 15% to cover profits
d) 20% to cover profits|B|7|
31. For which of the following, Special declaration Policy
is not issued?
a) Rail despatches
b) Road despatches
c) Inland waterways despatches
d) Export/import shipments|D|7|
32. Which of the following statements is true?
a) Actual Total loss occurs where the subject matter
of insurance is entirely destroyed.
b) Constructive Total loss occurs where the cost of repairs
of damaged goods exceeds the value of goods after repair.
c) Both are true
d) Both are false|C|7|
33. Which of the following risks covered under Institute
Cargo Clauses (B) is not covered under Institute Cargo
Clauses (C)?
a) stranding of vessel
b) collision of vessel
c) sea-water damage
d) explosion|C|7|
34. Which of the following risks is automatically covered
under Institute Cargo Clauses (A) without extra premium
:
a) inherent vice
b) country damage
c) war and kindred risks
d) strikes, riots and civil commotion|B|7|
35. Which of the following perils can be added, with extra
premium to Institute Cargo Clauses (B)?
a) Fresh water damage
b) Rain water damage
c) Inherent vice
d) Country damage|C|7|
36. The Inland Transit (Rail/Road) Clause C covers the
following risks :
a) Fire and theft
b) Derailment
c) Collision
d) Fire and lightning|D|7|
37. Under Inland Transit (Rail/Road) Clause (C), the insurance
ceases :
a) after 3 days of arrival of wagon at destination railway
station
b) after 7 days of arrival of wagon at destination railway
station
c) after 15 days of arrival of wagon at destination railway
station
d) On unloading of each package|D|7|
38. The clause in open cover which limits the liability
of insurers at any one time or place before the shipment is known as
:
a) Declaration clause
b) Basis of valuation clause
c) Location clause
d) Limit per bottom clause|C|7|
39. When badly damaged goods are abandoned because the
cost of reconditioning exceeds the value of goods after reconditioning,
the loss is settled as :
a) salvage loss
b) actual total loss
c) constructive total loss
d) general average loss|C|7|
40. Extra charges in Cargo claims refer to :
a) landing charges
b) reconditioning charges
c) warehousing charges
d) survey fees|D|7|
41. Which of the following is not required under Rail
Transit Claims?
a) Invoice
b) Bill of lading
c) Original policy
d) Non-delivery Certificate|B|7|
42. Which of the following expenses does not fall under
Sue and Labour charges?
a) landing charges
b) warehousing charges
c) reconditioning charges
d) Loss Surveyor's fees|D|7|
43. Which of the following statements is true?
a) In caroo losses, the survey fees are paid by the claimant
initially
b) Survey fees are reimbursed by insurers, if the claim
is admitted.
c) Both are true
d) Both are false|C|7|
44. Which of the following documents is not required under
particular average claims?
a) Policy
b) Bill of lading
c) Survey report
d) General Average statement|D|7|
45. Which of the following documents is not required under
Road Transit Claims?
a) Original policy
b) Consignment note
c) Letter of subrogation (stamped) .
d) Special Power of Attorney (stamped)|D|7|
CHAPTER 8
1. Which of the following does not fall under 'miscellaneous'
classification of motor vehicles?
a) Ambulance
b) Mobile dispensaries
c) Motorised rickshaws;
d) Cinema, Film Recording vans|C|8|
2. Under Motor Vehicles Act, liability under Workmen's
Compensation Act towards which of the following is compulsorily insurable?
a) Paid driver of vehicle
b) Conductor (public service vehlcle)
c) Ticket examiner (public service vehicle)
d) All these|D|8|
3. The liabilities which require compulsory insurance
under Motor Vehicles are for death or bodily injury
a) of any third party
b) of any passenger of a public service vehicle
c) damage to any property of a third party
d) All these|D|8|
4. Under the Motor Vehicles Act, the limit of liability
for damage to third party is:
a) Rs10,000
b) Rs6,000
c) Rs20,000
d) Rs.25,000|B|8|
5. Under the Motor Vehicles Act the limit of liability
for death or bodily injury of a passenger in a public
service vehicle is:
a) Rs25,000
b) Rs50,000
c) Rs1,00,000
d) Unlimited|D|8|
6. Liability under Workmen's Compensation Act is to be
compulsorily insured in respect of:
a) workers carried in a goods vehicle
b) workers carried in a public service vehicle
c) Both these
d) Neither of these|A|8|
7. Under the Motor Vehicles Act, the amount of compensation
for death on the basis of no-fault liability is:
a) Rs.25,000/-
b) Rs.50,000/
c) Rs.1,00,000/-
d) Rs.2,00,000/-|B|8|
8. Under the Motor Vehicles Act, the fixed compensation
for death in hit and run motor accident is:
a) Rs. 12,500/-
b) Rs.25,000/-
c) Rs.50,000/-
d) Rs.1,00,000/-|B|8|
9. Which of the following statements is true?
a) Compensation to victims of 'hit and run' motor accident
is payable out of Solatium Fund.
b) Compensation for victims of motor accident on no-fault
basis is awarded by the Motor Accident Claims Tribunal.
c) Both are true
d) Both are false|C|8|
10. Liability only Motor policy covers liability for damage
to:
a) property of third party .
b) property belonging to Insured
c) property held in trust by the Insured
d) property in the custody of the Insured|A|8|
11. Personal Accident cover for owner-driver under Liability
only Motor Policy applies only if the :
a) Owner-driver is the registered owner of the insured
vehicle.
b) Owner-driver is the insured named in the policy.
c) Owner-driver holds an effective licence.
d) All these|D|8|
12. Under Personal Accident cover for Owner-driver the
capital sum insured for two-wheelers is :
a) Rs25,000/-
b) Rs50,006/
c) Rs1,00,000/-
d) Rs.2,00,000/-|C|8|
13. Under Personal Accident cover for Owner-driver the
capital sum insured for private cars is :
a) Rs50,000/-
b) Rs1,00,000/-
c) Rs2,00,000/-
d) Rs3,00,000/-|C|8|
14. Under Personal Accident cover for Owner-driver the
capital, sum insured for commercial vehicles is
:
a) Rs50,000/-
b) Rs1,00,000/
c) Rs2,00,000/-
d) Rs3,00,000/-|C|8|
15. Which of these statements is true?
a) Compulsory motor third party insurance covers negligence
liability
b) Compulsory motor third party insurance liability
c) Both statements are false
d) Both statements are true|D|8|
16. Which of these statements is true? Compensation
from Solatium Fund is paid for :
a) no-fault liability claims
b) hit and run claims
c) Both are true
d) Both are false|B|8|
17. In the event of death of sole insured under a motor
policy the policy will remain valid until the expiry
of the policy, subject to the maximum period of :
a) 3 months
b) 6 months
c) 9 months
d) 12 months|A|8|
18. Applications from legal heirs of the deceased insured
for transfer of policy to their name should be accompanied by documents.
Which of the following is not required?
a) Death Certificate
b) Post-mortem report
c) Proof of title to the vehicle
d) Original policy|B|8|
19. Which of the following is not covered Under private
car package policy?
a) self-ignition
b) earthquake
c) terrorist act
d) all are covered|D|8|
20. Under private car package policy, the rate of depreciation
for all parts made of glass is :
a) 20%
b) 30%
c) 50%
d) Nil|D|8|
21. Which of the following exclusions does not appear
in Own Damage Section of private car package policy?
a) mechanical breakdown
b) wear and tear
c) electrical breakdown
d) malicious damage|D|8|
22. The rates of depreciation for replacement of rubber
parts under private car package policy is :
a) 10%
b) 20%
c) 30%
d) 50%|D|8|
23. Which of the following is covered under private car
package policy?
a) transit of the insured vehicle by road
b) transit of the insured vehicle by rail
c) transit of the insured vehicle by air
d) All these|D|8|
24. Which of the following is not covered under private
car package policy?
a) earthquake
b) lightning
c) loss of accessories unless the vehicle is stolen at
the same. time
d) landslide|C|8|
25. Under the private car package policy the towing charges
in respect of a damaged vehicle mean :
a) cost of protection to the vehicle
b) cost of removal to the nearest repairer
c) cost of re-delivery to the insured
d) All of the above|D|8|
26. The maximum towing charges of a private car payable
is restricted to :
a) Rs750/-
b) Rs1,000/-
c) Rs1,500/-
d) Rs2,000/-|C|8|
27. Which of the following statements is true?
a) The Insured's Declared Value of the vehicle is fixed
on the basis of manulacturer's listed selling price of the brand and model
of the.vehicle at the commencement of insurance.
b) The Insured's Declared Value is the sum insured under
the policy.
c) Both are true
d) Both are false|C|8|
28. Insured's Declared Value of obsolete vehicles is to
be determined by :
a) the surveyor
b) the insured
c) the insurer
d) the insured and insurer|D|8|
29. The Insured Declared value shall be treated as the
market value throughout the policy period without any depreciation for
the purpose of
a) Actual Total Loss
b) Constructive Total Loss
c) Both are true
d) .Both are false|C|8|
30. Under private car package policy constructive total
loss arises if the cost of repairs of the damaged vehicle exceeds :
a) 75% of Insured Declared Value
b) 80% of Insured Declared Value
c) 90% of Insured Declared Value
d) 100% of Insured Declared Value|A|8|
31. Under private car package policy which of the iollowing
exclusions does not appear in General Exceptions Clause of the policy?
a) Driving without a valid licence
b) Damage outside geographical area
c) Breach of 'Limitations as to use' clause
d) Driving under the influence of intoxicating liquor|D|8|
32. Constructive total loss in motor insurance arises
when :
a) the vehicle is stolen
b) the vehicle is a total wreck
c) the vehicle is beyond repairs
d) the cost of repair exceeds 75% of Insured Declared
Value|D|8|
33. Which of the following is true under private car package
policy?
a) The liability of insurer for total loss does not exceed
Insured Declared Value less the value of the wreck.
b) The liability for partial losses does not exceed costs
of repair / replacement less depreciation.
c) Both are true
d) Both are false|C|8
34. Which of the following statements is true?
a) Rates of premium for motor third party risks are fixed
by the IRDA.
b) Rates of premium for motor 'own damage' risks are
fixed by the Tariff Advisory Committee
c) Both are true
d) Both are false|A|8|
35. Which of the following is not a rating factor for
private cars (Own Damage)?
a) Insured's Declared Value of Vehicle
b) Cubic capacity
c) Passenger capacity
d) Geographical zone|C|8|
36. Under Motor package policy which of the following
does not attract additional premium?
a) Personal Accident cover for Owner-Driver
b) Electronic fittings
c) Use of CNG fuel
d) Fibre glass fuel tanks|A|8|
37. Which of the following is not eligible for discount
in 'Own Damage' premium (private car package Policy)?
a) Vintage cars,
b) Brand new cars
c) Membership of Automobile Association
d) Anti-theft devices approved by Automobile Research
Association of India|B|8|
38. Which of the following attract additional premium
under private car package policy?
a) Electronic items fitted to the vehicle (but not included
in the manufacturers price)
b) CNG/LPG kit fitted to the vehicle
c) Fibre glass fueltanks
d) All these|D|8|
39. Which of the following is not a rating factor for
'Own Damage' cover for taxies?
a) Age of vehicle
b) Cubic capacity
c) Geographical zone
d) Insured's Declared Value of vehicle|D|8|
40. Which of the following is not taken into consideration
for fixing rates of premium for buses (package policy)?
a) Age of vehicle
b) Licensed passenger capacity
c) Insured Declared Value of vehicle
d) Geographical Area|C|8|
41. Deductible under package policies applies to
:
a) motorized two wheelers
b) private cars
c) goods vehicles
d) all three vehicles|D|8|
42. In respect of motorthird party insurance :
a) No commission is payable
b) No brokerage is payable
c) Both are true
d) Both are false|C|8|
43. Which of the following statements is true?
a) No claim bonus is computed on the 'Own Damage' premium
required for renewal of the policy.
b) When there is transfer of interest in the motor policy
from one insured to another, the transfer of no claim bonus is not automatic.
c) Both are true
d) Both are false|C|8|
44. Which of the following documents is not required for
processing private car 'Own Damage' claims?
a) Driving licence
b) Registration Certificate book
c) Fitness Certificate
d) Final Bill from repairers|C|8|
45. Which of the following is collected from the insured
by insurers before the payment of total loss?
a) Registration and Taxation books
b) Ignition keys
c) Blank T.O. and T.T.O. forms duly signed by the insured
d) All these|D|8|
46. Out of the following documents for 'Own Damage'
motor claims, which one which is additionally required for commercial vehicle
(goods carrier) claims?
a), Registration Certificate book
b) Permit
c) Driving licence
d) Police Report|B|8|
47. Which of the following does not attract additional
premium under motor policies?
a) CNG/LPG fuel kit
b) Anti-theft devices
c) Fibre glass fuel tanks
d) Electronic items fitted to the vehicle but not included
in manufacturer's price|B|8|
48. Motor third party premium shall be shared among all
the general insurers writing motor insurance business in proporfion to
gross direct premium in :
a) Motor insurance business
b) All classes of general insurance business
c) Both are true
d) Both are false|B|8|
49. The administrator of motor third party insurance is
:
a) IRDA
b) GIC
c) Central Government
d) Motor Accident Claims Tribunal|B|8|
50. Which of the following statements is true?
a) Motor third party (injury claims) are adjudicated
by Motor Accident Claims Tribunal.
b) Motor third party (property damage claims) aro adjudicated
by civil courts.
c) Both are true
d) Both are false|A|8|
51. Motor 'No-fault' liability claims are decided by :
a) Lok Adalat
b) Lok Nyayalaya
c) Civil Court
d) Motor Accident Claims Tribunal|D|8|
52. Which of the following documents is required to support
Motor 'No-fault' liability third party claims?
a) Death Certificate
b) Medical Certificate
c) Police Report
d) All three|D|8|
CHAPTER 9
1 . For which of the following, full capital sum
insured is not payable under Personal Accident policy?
a) Permanent Total Disablement
b) Permanent Partial Disablement
c) Loss of two limbs
d) Loss of one limb and one eye|B|9|
2. Which of the following is generally not covered
under Personal accident insurance.
a) Permanent Total Disablement
b) Permanent Partial Disablement
c) Temporary Total Disablement
d) Temporary Partial Disablement|D|9|
3. Which of the following contingencies is not covered
under personal accident insurance?
a) Temporary Total Disablement
b) Temporary Partial Disablement
c) Permanent Total Disablement
d) Permanent Partial Disablement|B|9|
4 Which of the following is not considered as permanent
total disablement?
a) Loss of both eyes
b) Loss of hearing in both ears
c) Paralysis
d) Loss of one limb and one eye|B|9|
5. The amount of weekly payment for temporary total disablement
under personal accident insurance is restricted to
a) Rs.1,000/-
b) Rs.2,000/-
c) Rs.3,000/-
d) Rs.5,000/-|C|9|
6. Which of the following additional benefits under personal
accident insurance attracts extra premium:
a) medical expenses
b) expenses for carriage of dead body
c) children's education fund
d) cumulative bonus|A|9|
7. Which of the following is not excluded under personal
accident assurance?
a) Service in the armed forces
b) Air travel in standard type of aircraft
c) Suicide
d) Attempted suicide|B|9|
8. Which of the following appear as exclusions under personal
accident insurance?
a) Childbirth or pregnancy
b) Service in the armed forces
c) Accident indirectly caused by insane
d) All these|D|9|
9. Which of the following is true in relation to personal
accident insurance?
a) the cover is on a 24 hours basis
b)The geographic area of cover is India
c) Both these
d) Neither of these|A|9|
10. Which of the following occupations falls under Risk
Group III for rating purposes (Personal Accident)?
a) mining engineers
b) jockeys
c) circus personnel
d) All these|D|9|
11. Which of the following occupations does not fall under
Risk Group I for rating purposes (Personal Accident)?
a) Accountants
b) Veterinary doctors
c) Lawyers
d) Bankers|B|9|
12. Which of the following Occupations does not fall under
Group II for rating purposes (Personal Accident)?
a) Lorry drivers
b) Motor Mechanics
c) Consulting Architects
d) Paid drivers of motor cars|C|9|
13. Which of the following statements is true?
a) No medical examination is required for fresh cover
for personal accident insurance.
b) Medical examination is required for renewal of personal
accident insurance.
c) Both are true
d) Both are false|A|9|
14. Which of the following statements is true?
a) Personal Accident cover is not granted for high sum
insured which is disproportionate to monthly salary of the insured.
b) Non-earning housewives are granted personal accident
cover for capital sums only.
c) Both are true
d) Both are false|C|9|
15. Which of the following statements is true in the relation
to Flight Coupons on declaration basis?
a) Flight insurance coupons are issued to individuals.
b) Flight insurance coupons are issued to companies in
respect of their employees who travel by air frequently.
c) Both are true
d) Both are false|C|9|
16. Which of the following is eligible for group personal
accident insurance be granted?
a) members of a registered cooperative society
b) employees of a company
c) holders of deposit certificates issued by banks
d) All these|D|9|
17. Under group Personal Accident policy, which of the
following is true?
a) Cumulative bonus does not apply
b) Children's education grant is available
c) Both are true
d) Both are false|A|9|
18. Group Personal Accident cover is arranged to cover
only accidents to employees arising out of and in the course of employment.
Reduced premium equivalent to how many % of the normal premium is charged?
a) 50%
b) 60%
c) 75%
d) 80%|C|9|
19. Bonus (discount) and Malus (loading of premium) applies
under Personal Accident insurance under :
a) individual policies
b) group policies
c) both individual and group policies
d) neither individual nor group policies|B|9|
20. Under which of the following Personal Accident policies
long term discount is available?
a) individual policies
b) family package policies
c) group policies on Government employees
d) Group Janata personal accident policy|D|9|
21. If group Personal Accident policy cover is required
when the employee is not at work and/or not on official duty i.e. "off-duty"
cover, the reduced premium of how much % of the normal premium is charged?
a) 40%
b) 50%
c) 60%
d) 75%|B|9|
CHAPTER 10
1. Which of the following costs is/are payable under Mediclaim
policy?
a) Spectacles
b) Lenses
c) Hearing aids
d) Artificial limbs|D|10|
2. Which of the following criteria has to be satisfied
by a hospital or nursing home to be eligible to Provide treatment under
Mediclaim policy?
a) registration with local authorities
b) operation theatre
c) Doctors and nursing staff round the clock
d) All thse|D|10|
3. As per Mediclaim policy:
a) Expenses on hospitalisation for a minimum period of
24 hours are admissible.
b) This time limit is not applied if the insured
is discharged the same day after specific treatment e.g. Dialysis.
c) Both these
d) Neither of these|C|10|
4. Relevant medical expense, incurred during the period
of how many days, after hospitalization are treated as part of the claim?
a) 15 days
b) 30 days
c) 45 days
d) 60 days|D|10|
5. Relevant medical expenses incurred during the period
of how many days prior to hospitalization are treated as part of the claim?
a) 15 days
b) 30 days
c) 45 days
d) 60 days|B|10|
6. Which of the following types of specific treatment
are exempted from minimum 24 hours stay in a hospital?
a) Chemotherapy
b) Radiotherapy
c) Lithotripsy
d) All these|D|10|
7. Domiciliary hospitalization benefit does not include:
a) Pre-hospitalisation treatment
b) Post-hospitalisation treatment
c) Both are true
d) Both are false|C|10|
8. Which of the following diseases is excluded under Domiciliary
Hospitalisation benefit?
a) Tonsilitis
b) Sinusitis
c) Cataract
d) Hernia|A|10|
9. Which of the following diseases is excluded during
the first year of operation of Mediclaim policy?
a) Bronchitis
b) Diabetes
c) Hernia
d) Chronic Nephritis|C|10|
10. Under Mediclaim policy any disease contracted by the
insured during the first how many days from the commencement of policy
is excluded?
a) 15 days
b) 30 days
c) 45 days
d) 60 days|B|10|
11. Which of the following diseases is not excluded during
the first year of operation of Mediclaim policy?
a) Epilepsy
b) Cataract
c) Hernia
d) Piles|A|10|
12. Which of the following is payable under Mediclaim
policy if necessitated due to an accident?
a) cosmetic treatment
b) aesthetic treatment
c) plastic surgery
d) All these|D|10|
13. Which of the following statements is true?
a) Dental treatment is excluded unless requiring hospitalization
b) Expenses on vitamins and tonics are excluded unless
forming part of treatment
c) Both are true
d) Both are false|C|10|
14. Treatment for which of the following is excluded under
Mediclaim policy?
a) Voluntary termination of pregnancy
b) Caesarian section
c) Childbirth
d) All these|D|10|
15. Under Mediclalm policy, which of the following is
not covered?
a) Chemotherapy
b) Radiotherapy
c) Naturopathy
d) Cost of pacemaker|C|10|
16. Subject to no claim, cost of medical checkup once
in every how many underwriting years is payable under
Mediclaim policy :
a) 2 years
b) 3 years
c) 4 years
d) 5 years|C|10|
17. The sum insured under Mediclaim policy is increased
by 5% for each claim free year of insurance subject to a maximum accumulation
of :
a) 3 years
b) 5 years
c) 10 years
d) 15 years|C|10|
18. For which of.the following diseases, medical certificate
from a consulting physician is required to be submitted along with the
proposal form?
a) Diabetes
b) Hypertension
c) Coronary insufficiency
d) All the above|D|10|
19. Mediclaim insurance is available to persons between
the ages of :
a) 2 years and 70 years
b) 2 years and 75 years
c) 4 years and 80 years
d) 5 years and 80 years|D|10|
20. A discount in premium is allowed to a family comprising
the insured and
a) spouse
b) dependent children
c) dependent parents
d) All these|D|10|
21. Which of the following is not required in the Mediclaim
Proposal form?
a) Past diseases and details of treatment
b) Average monthly income
c) Income Tax PAN
d) All the above are required|D|10|
22. Which of the following is true, in relation to Mediclaim
proposal form?
a) The insured warrants the truth of the statements and
agrees that the proposal form shall be the basis of
the contract.
b) The insured consents to the insurer taking medical
information from hospital / medical practitioner who has treated the insured.
c) Both are true
d) Both are false|C|10|
24. Which of the following statements is true? A Group
Mediclaim is available to any group, subject to the following:
a) The Group has a central administration point.
b) The prescribed number of persons are covered.
c) Both are true
d) Both are false|C|10|
25. Which of the following is true under Group Mediclaim
policy?
a) Cumulative bonus is not available
b) Health check-up expenses are payable
c) Both are true
d) Both are false|A|10|
26. Which of the following is not available under Group
Mediclaim policy?
a) No claim bonus
b) Group discount
c) Cumulative bonus
d) Maternity extension|C|10|
27. Which of the following is covered under Maternity
Benefit extension?
a) pre-natal expenses
b) post-natal expenses
c) expenses for voluntary medical termination
of pregnancy
d) none is covered|D|10|
28. Waiting period applicable for payment of a Maternity
claim :
a) 8 months
b) 9 months
c) 10 months
d) 12 months|B|10|
29. Under which of the following claims, the waiting period
does not apply?
a) normal delivery
b) caesarean section
c) abdominal operation for extra uterine pregnancy
d) applies to all|D|10|
30. Claim under Maternity Extension in respect of any
one insured person is payable only for
a) first child
b) first two children
c) first three children
d) first four children|B|10|
31. Which of the following is true under Maternity Benefit
extension?
a) Option for Maternity benefits has to be exercised
at the inception of the policy
b) Insured persons with two or more living children are
not eligible for this benefit
c) Both are true
d) Both are false|C|10|
32. Which of the following is true under Maternity Benefit
extension?
a) The benefits are admissible only if expenses are incurred
in Hospital / Nursing home as inpatients.
b) Pre-natal and post-natal expenses are admissible if
admitted in Hospital / Nursing home for treatment.
c) Both are true
d) Both are false|C|10|
33. Which of the following is not payable under Maternity
Benefit extension?
a) Pre-natal expenses prior to hospitalization
b) Caesarean section
c) miscarriage due to accident
d) abortion due to accident|A|10|
34. Which of the following statements is true?
a) Bonus/ Malus clause applies to individual Mediclaim
policy.
b) Bonus / Malus clause applies to Group Mediclaim policy.
c) Both are true
d) Both are false|B|10|
35. In relation to Cancer Patients Aid Association policy
:
a) The premium is payable to CPAA as part of the membership
fee.
b) Claims are paid by CPAA.
c) Both are true
d) Both are false|A|10|
36. No claim is payable under CPAA policy if, from the
date of becoming a member of CPAA, the insured contracts
cancer within a period of :
a) 15 days
b) 30 days
c) 45 days
d) 60 days|B|10|
37. Which of the following statements is true?
a) Claims under CPAA Cancer policy are paid by insurers.
b) These claims and documents have to be certified by
CPAA.
c) Both are true
d) Both are false|C|10|
38. For each completed year of policy in force prior to
claim, the sum insured under CPAA Cancer policy, is increased by
:
a) 5%
b) 10%
c) 15%
d) 20%|A|10|
39. Differences as to the claim or quantum thereof are
to be referred to :
a) arbitration as per policy conditions
b) committee set up by CPAA and the insurance company
c) Both are true
d) Both are false|B|10|
40. Under Critical Illness policy which of the following
is not specified as critical illness?
a) Cancer
b) Paralysis
c) Tuberculosis
d) Parkinson's Disease|C|10|
41. If the Insured is found to have contracted a
critical illness, claim under the Critical Illness policy is payable during
the policy period, if the insured survives such critical illness
for :
a) 15 days from the date of its discovery
b) 30 days from the date of its discovery
c) 45 days from the date of its discovery
d) 60 days from the date of its discovery|B|10|
42. nder the Critical Illness policy, any cricital illness
is not covered if discovered within :
a) 30 days
b) 45 days
c) 60 days
d) 90 days|D|10|
43. Overseas Medical Policy can be granted to Indian Resident
undertaking bona fide trips for the following purposes :
a) Business
b) Official
c) Holiday
d) All the above purposes|D|10|
44. Which of the following requisites applies/apply for
eligibility for Overseas Medicai policy of foreign nationals working in
India for Indian Employers of multi-national organization?
a) Their salary must be in Indian Rupees
b) Visit abroad for official purposes
c) Visit abroad is undertaken on behalf of employer
d) All the above|D|10|
45. Under Overseas Medical policy, extension of the period
of insurance is automatic and without extra premium, if due to delay of
public transport services beyond the control of insured, for the period
not exceeding :
a) 7 days
b) 15 days
c) 21 days
d) 30 days|A|10|
46. Which of the following is not excluded under Overseas
Medical Policy?
a) Child birth
b) miscarriage
c) abortion
d) cosmetic surgery necessary as a result of a covered
accident|D|10|
47. Which of the following is not paid upto the full limit
of cover under the Overseas Medical policy.
a) physician Services
b) hospital Services
c) dental services for immediate relief of dental pain
only
d) local emergency medical transportation|C|10|
48. Under Overseas Medical Policy (loss of checked baggage)
for which of the following items claim is not paid?
a) binoculars
b) sun-glasses
c) antiques
d) All the above|D|10|
49. Under Personal Accident Section of Overseas Medical
Policy which of the following is not covered?
a) Death
b) Permanent total disablement
c) Permanent partial disablement
d) Loss of eye(s) or limb(s)|C|10|
50. Under Overseas Medical Policy, if there is delay delivery
of Baggage at the destination of outbound flght from India, emergency purchase
of replacement items is paid, upto maximum delay period :
a) 6 hours
b) 12 hours
c) 18 hours
d) 24 hours|B|10|
51. Under which of the following circumstances, loss is
not payable under loss of passport section of Overseas
Medical policy?
a) Confiscation by customs
b) Detention by police or other authority
c) No official report from the police
d) All the above|D|10|
52. Which of the following are general exclusions (all
sections) of Overseas Medical Policy? Participation in :
a) Naval, Military orAirforce operations
b) Hazardous sports
c) Professional sports events
a) All the above|D|10|
53. Unless, specifically agreed by insurers, The insurance
under Overseas Medical Policy does not operate in case of continuous absence
beyond a period of :
a) 60 days
b) 90 days
c) 120 days
d) 180 days|D|10|
54. The Overseas Medical Policy does not provide indemnity
for pre-existing medical condition which is defined as sickness for which
the Insured person was treated prior to travel, in the preceding
:
a) 3 months
b) 6 months
c) 9 months
d) 12 months|D|10|
55. Under which of the following sections of Overseas
Medical Policy, deductible does not apply :
a) Medical Expenses
b) Personal Accident
c) Personal Liability
d) Loss of Passport|B|10|
56. Corporate Frequent Travellers policy is granted to
:
a) Officials of companies registered under the Companies
Act.
b) Partners of registered firms.
c) Both are true
d) Both are false|C|10|
57. Under Corporate Frequent Travel Annual policy the
duration of any one trip should not exceed :
a) 30 days
b) 45 days
c) 60 days
d) 90 days|C|10|
58. Which of the following statements is true?
a) Corporate Frequent Travellers policy is issued to
individuals only.
b) The cover under this policy is subject to the Insured
person advising insurers any material change in his
health condition.
c) Both are true
d) Both are false|C|10|
59. Under Corporate Group Overseas Medical Policy deposit
Premium equal to Premium of days travel under
plan (world-wide travel including USA/Canada), at
least :
a) 200 days
b) 300 days
c) 400 days
d) 500 days|D|10|
60. Under Corporate Group Overseas Medical Policy, the
prescribed Medical reports are required for
employees with age above :
a) 55 years
b) 60 years
c) 65 years
d) 70 years|B|10|
61. Which of the following persons are not eligible for
Overseas Employment and Study policy?
a) Students doing studies
b) Students doing research
c) Construction workers temporarily posted abroad
d) Software engineers temporarily posted abroad|C|10|
62. Which of the following is not covered under Overseas
Employment and Study policy?
a) Medical expenses in India on evacuation
b) Loss of checked baggage
c) Delayed baggage
d) Personal liability|D|10|
CHAPTER 11
1. Under Public Liability Insurance Act 1991, the
owner is not liable to pay relief in the event of
a) death of any person
b) injury to any person not resulting in death
c) damage to property of any person
d) injury to a workman within the meaning of Workmen's
Compensation Act|D|11|
2. The amount of relief payable under
Public Liability Insurance Act, 1991 for fatal accident
is
a) Rs.10,000/-
b) Rs.12,500/
c) Rs.25,000/-
d) Rs.50,000/-|C|11|
3. The amount of relief payable under Public Liability
Insurance Act, 1991 for permanent total disability
is:
a) Rs.12,500/-
b) Rs.25,000/
c) Rs.50,000/-
d) Rs. 1,00,000/-|B|11|
4. Under Public Liability Insurance Act, 1991
a company handling hazardous substance has to insure
for an amount not less than the amount:
a) market value of assets the company
b) market value of stocks the company
c) paid-up capital
d) turnover of hazardous substances|C|11|
5. The maximum liability of the insurer under Public Liability
Insurance Act 1991 to pay relief to several claimants arising out of one
accident shall not exceed :
a) Rs 2.50 crores
b) Rs5.00 crores
c) Rs 7.50 crores
d) Rs 10.00 crores|B|11|
6. Under Public Liability Insurance Act, 1991 the aggregate
liability of the insurer to pay relief in case of more than one accident
during the currency of the policy shall not exceed
a) Rs.5 crores
b) Rs.7.5 crores
c) Rs.10.00crores
d) Rs.15.00 crores|D|11|
7. Which of the following liabilities is not excluded
under insurance policy under Public Liability Insurance
Act, 1991?
a) arising out of willful non-compliance of statutory
provision
b) damage to property leased by the insured
c) damage to property of third party
d) fines and penalties|C|11|
8. Which of the following is taken into account to fix
rates of premium for the policy under Public Liability Insurance Act, 1991?
a) Limit of indemnity - Any one Accident
b) Limit of indemnity - Any one Year
c) Limit of indemrfity - Any one year and turnover
d) Limit of indemnity - Any one accident and turnover|D|11|
9. Under Public Liability Insurance Act, 1991, application
for claim for relief must be made to the collector within how many years
of the occurrence of the accident?
a) 1 year
b) 2 years
c) 3 years
d) 5 years|D|11|
10. Which of the following fall under Industrial Risks
for the purpose of public liability insurance?
a) Exhibitions
b) Permanent Amusement parks
c) Film studios
d) None of these|D|11|
11. Which of the following is true in relation to Industrial
Risks Public Liability policy?
a) 'Policy Period' means the period commencing from effective
date and hour and terminating at midnight on the expiry date as shown in
the schedule of the policy
b) Period of Insurance means the period commencing from
the retroactive date and terminating at midnight on the expiry date as
shown in the schedule of the policy
c) Both are true
d) Both are false|C|11|
12. The Indemnity Clause of Industrial Risks Public Liability
policy excludes :
a) Products liability
b) Pollution liability
c) Both are true
d) Both are false|C|11|
13. Under public liability policy for industrial risks,
which of the following cannot be covered at extra premium?
a) pollution
b) earthquake
c) transportation of hazardous substances
d) fines and penalties|D|11|
14. Which of the following exclusions of Industrial Risks
Public Liability policy can be covered under a separate policy?
a) Liability for pollution
b) Liability of collaborator who has a technical collaboration
with the insured
c) Liability for injuries to employees
d) Liability arising out of earthquake|C|11|
15. Under Industrial Risks Public Liability policy which
of the following ratios of Any one Accident and Any one Year limits of
indemnity are, not allowed?
a) 1:2
b) 1:3
c) 1:4
d) 1: 5|D|11|
16. Under Industrial Risks Public Liability policy the
compulsory excess of a specified percentage is applied on the limit of
indemnity :
a) any one accident
b) any one year
c) Both are true
d) Both are false|A|11|
17. Which of the following is not relevant in fixing rates
of premium under Industrial Risks public liability policy?
a) Risk Group
b) Type of Construction of risk
c) Ratio of Limits of Indemnity - AOA to AOY
d) Turnover|B|11
18. Which of the following liabilities excluded under
Industrial Risks Public Liability policy can be covered under separate
Policies?
a) products
b) injuries to employees
c) liability under the Public Liability Insurance Act,
1991
d) All these|D|11|
19. Which of the following risks falls under Group IV
for rating purposes under Industrial Risks Public
Liability policy?
a) Distilleries
b) Match factories
c) Breweries
d) Biscuit factories|B|11|
20. Which of the following extensions of cover are relevant
to public liability policy for hotels?
a) Pollution
b) Food and Beverages
c) Property, in the custody of the Insured
d) All these|D|11|
21. Which of the following exclusions does not apply under
products liability policy?
a) Pollution
b) Costs of repair of a defective product
c) Costs of recall of any product
d) Product guarantee|A|11|
22. Which of the following products is charged the highest
rate of premium under products liability policy?
a) motor vehicles
b) motor vehicle tyres
c) alcoholic beverage
d) pharmaceutical products|B|11|
23. In which of the following professions, professional
negligence may result in financial loss to the client?
a) Doctors
b) Medical practitioners
c) Medical establishments
d) Chartered Accountants|D|11|
24. In which of the following professional indemnities
there is no provision for voluntary excess?
a) Architects
b) Chartered Accountants
c) Medical establishments
d) Doctors|D|11|
25. For which of the following Professional indemnities,
'per capita' premium in addition to basic rate is not provided?
a) Medical establishments
b) Doctors
c) Chartered Accountants
d) Solicitors|B|11|
26. Which of the following does not appear in the indemnity
clause of Workmen's Compensation insurance?
a) Employees State Insurance Act
b) Workmen's Compensation Act
c) Fatal Accidents Act
d) Common Law|A|11|
27. Which of the following statements is true?
a) Compulsory excess is applicable to Doctors professional
indemnities
b) Compulsory excess is applicable to professional indemnities
for medical establishments
c) Both are true
d) Both are false|B|11|
28. Which of the following extensions is not granted under
Workmen's Compensation policy?
a) specified diseases in the Workmen's Compensation Act
b) medical expenses
c) technical collaboration
d) contractor's workmen|C|11|
CHAPTER 12
1. Which of the following is taken into account in fixing
the estimated completely erected value of the contract works under CAR
policy.
a) cost of material
b) construction costs
c) freight and customs duties
d) All the above|D|12|
2. Which of the following statements is true.
a) Pro-rata average is applied under CAR policy
b) Pro-rata average is applied under EAR policy
c) Both these
d) Neither of these|C|12|
3. Which of the following projects does not fall under
Contractors All Risk policy?
a) Installation of machinery
b) Buildings
c) Tunnels
d) Bridges|A|12|
4. Under which of the following policies the sum insured
is required to be current replacement value?
a) Boiler
b) Machinery Breakdown
c) Electronic Equipment
d) All these|D|12|
5. Under Marine-cum-Erection policy the cover commences
when the equipment
a) is loaded on the vessel
b) is discharged at the port of entry
c) is unloaded at the site of erection
d) leaves the manufacturer's warehouse|D|12|
6. Which of the following property can be insured under
Machinery Breakdown policy?
a) electrical equipment
b) mechanical equipment
c) lifting equipment
d) All these|D|12|
7. Which of the following is true
in relation to Contractors Plant and Machinery policy?
a) The policy is an annual policy
b) The policy covers plant and machinery at different
project sites
c) Both are true
d) Both are false|C|12|
8. Which of the following statements is true?
a) Contractors All Risks policy covers civil engineering
projects
b) Erection All Risks policy covers machinery during
erection
c) Both are true
d) Both are false|C|12|
9. Which of the following is not covered under Boiler
and Pressure Plant policy?
a) Damage to boiler
b) Damage to surrounding Property of insured
c) Damage by fire
d) Damage to third party property|C|12|
10. Which of the following statements is true?
a) Machinery Loss of Profits policy is granted only if
there is Machinery Breakdown Policy covering the machinery.
b) Loss under Machinery Loss of Profits is payable if
the material damage under Machinery Breakdown policy
is payable.
c) Both- are true
d) Both are false|C|12|
11. Which of the following is not included in Electronic
Equipment Insurance?
a) Damage to equipment
b) Damage to external data media
c) Increased cost of working
d) Loss of prfits|D|12|
CHAPTER 13
1. Which of the following is not
covered under Burglary (Business Premises) policy?
a) Theft after forcible entry
b) Damage to insured goods by burglars
c) Damage to Premises by burglars
d) Breakage of windows by burglars|D|13|
2. Which of the following requirements does not
apply for granting cash-in-safe insurance?
a) The safe is 'burglar-proof'
b) The safe is brand new
c) The safe is of approved make
d) The safe is of approved design|B|13|
3. Which of the following is not payable under Burglary
(Business Premises) policy?
a) Theft by employees
b) Theft by customers
c) Theft by visitors
d) All these|D|13|
4. Under which of the policies pro-rata average is not
applied?
a) Cash in safe policy
b) Burglary Declaration policy
c) Burglary Floating policy
d) First Loss policy|D|13|
5. Which of the following risks is not covered at extra
premium under Burglary (Business Premises) policy?
a) Strike
b) Riot
c) Breakage of plate glass
d) Terrorism|C|13|
6. Which of the following losses caused by burglars is
not payable under Burglary (Business Premises) policy?
a) Damage to external doors by fire
b) Damage to goods which were not stolen
c) Damage to furniture
d) Theft of cash from safe through original key
obtained by threats of violence|A|13|
7. Which of the following properties can be covered under
All Risks policy on "agreed value" basis?
a) Watches
b) Cameras
c) Binoculars
d) Paintings|D|13|
8. Which of the following is covered under Baggage insurance
policy?
a) travelling salesman's samples
b) travelling dealers' stocks
c) accompanied baggage
d) unaccompanied baggage|C|13|
9. Which of the following policies are not granted in
Burglary (Business Premises) policy?
a) First Loss policy
b) Reinstatement value policy
c) Declaration policy
d) Floating policy|B|13|
10. Under Money insurance, estimated amount of cash in
transit during the policy period:
a) is the maximum amount payable for any one loss
b) is the amount on which the premium is collected
c) Both are correct
d) Neither is correct|B|13|
11. Which of the following is covered under money insurance
policy.
a) wages in transit from the bank to insured premises.
b) other money in transit from the bank to insured premises
c) money collected by outdoor employees and in transit
to the bank
d) All these|D|13|
12. Which of the following risks does not require additional
premium under money in transit policy?
a) Riot
b) Strike
c) Robbery
d) Terrorism|C|13|
13. Which of the following can be covered under money-in-transit
policy at extra premium?
a) dishonesty of persons carrying the cash
b) loss of wages on premises during payment to employees
c) Both can be covered
d) Neither can be covered|C|13|
14. Under Fidelity Guarantees, the customary time limit
for discovery of loss is not later than how many months
after the resignation of the dishonest employee?
a) 6
b) 12
c) 18
d) 24|B|13|
15. Which of the following Fidelity Guarantee policies
is usually granted to large reputable firms to cover their entire staff?
a) Floating policy
b) Collective policy --
c) Blanket policy
d) Positions policy|C|13|
16. Under which of the following Fidelity Guarantee policies,
individual amount of guarantee is not specified?
a) Collective policy
b) Floating policy
c) Positions policy
d) Blanket policy|B|13|
17. Under which of the following fidelity guarantee policies,
'per capita' additional premium is charged?
a) collective
b) floating
c) positions
d) blanket|B|13|
18. Which of the following risks is excluded under Television
insurance policy?
a) Lightning
b) Riot & Strike
c) Theft
d) None of the these|D|13|
19. Which of the following causes of breakage is covered
under plate glass insurance policy?
a) Fire
b) Fxplosion
c) Riot
d) Accident|D|13|
20. Which of the following is not covered under Neon Sign
insurance policy?
a) Theft
b) Lightning
c) Mechanical breakdown
d) External explosion|C|13
21. Which of the following covers in Householders' Package
insurance is not included in Shopkeepers' Package insurance?
a) Personal baggage
b) Television
c) Fixed Plate glass
d) Legal liability to third parties|B|13|
22. Which of the following covers in Shopkeepers' Package
insurance is not included in Householders' Package insurance?
a) Fixed Plate glass
b) Neon sign
c) Pedal cycles
d) Legal liability to employees|B|13|
23. Which of the following are covered under Bankers'
Blanket policies?
a) Money and office contents
b) Securities and office contents
c) Only office contents
d) Money and securities|D|13|
24. Which of the following are not covered under Bankers'
Blanket policies?
a) trading losses
b) payment of raised cheque
c) dishonesty of the employee of the bank with respect
to loss of money
d) loss of securities by fire|A|13|
25. Which of the following are not covered under Banker's
Blanket policies
a) Fraud of insured's employees in respect of goods
hypothecated to the insured
b) Payment of forged cheques
c) Loss due to faulty computer programming
d) Loss of securities by burglary|C|13|
26. Under which of the following modes of transit, jewellery
is covered on'All Risks' basis under Jeweller's Block policy?
a) Registered Parcel Post
b) Air Freight
c) Through Angadia
d) All these|D|13|
27. Under Jewellers Block policy which of the following
property is covered against specified risks only and not on 'All Risks'
basis?
a) on premises
b) in transit by air freight
c) in transit by angadia
d) in the custody of brokers|A|13|
CHAPTER 14
1. Which of the following risks is excluded under cattle
policy.
a) Earthquake
b) Flood
c) Riot and Strike
d) Theft|D|14|
2. Which of the following is not an exclusion
under cattle policy?
a) Theft of the animal
b) Clandestine sale of the animal
c) Transport by air
d) Surgical operations|D|14|
3. Which of the following is covered by extra premium
under cattle policy?
a) Riot and Strike
b) Surgical operations
c) Famine
d) Permanent total disability|D|14|
4. Under Cattle policy, the claim is not payable for death
due to disease occurring within how many days of the commencement of the
risk?
a) 7 days
b) 15 days
c) 21 days
d) 30 days|B|14|
5. Which of the following is covered under Sheep &
Goat insurance?
a) Indigenous animals
b) Cross-breed animals
c) Exotic animals
d) All these|D|14|
6. Which of the following is true in relation to Sheep
and Goat insurance?
a) Indemnity is provided on the basis of sum insured
or market value whichever is less.
b) Salvage value is deducted from claim amount payable.
c) Both are true
d) Both are false|A|14|
7. For which of the following features, no discount
is granted for premium rates for Poultry insurance?
a) Farms in rural areas
b) Farms having resident veterinary doctor
c) Farms having dead bird disposal system
d) Farms having standard layout|A|14|
8. Which of the following statements is true?
a) Elephants used for commercial purposes are covered
b) Elephants used for religious are covered
c) Both are true
d) Both are false|C|14|
9. Under Dog insurance which of the following risks can
be covered at extra Premium?
a) Death by accidental Poisoning
b) Loss by theft
c) Third party liability
d) All these|D|14|
10. For which of the following crops horticulture policy
is not available?
a) Grapes
b) Oranges
c) Papaya
d) Bananas|C|14|
11. For which of the following crops, Plantation (Inputs)
policy is not available?
a) Rubber
b) Coffee
c) Tea
d) Sugarcane|B|14|
12. Under Agricultural Pump Set Policy, which of the following
risks is covered at extra premium?
a) Mechanical breakdown
b) Electrical breakdown
c) Flood
d) Burglary|C|14|
13. Which of the following risks is excluded under Salt
Works insurance policy?
a) Storm and cyclone
b) Flood
c) Unseasonal rain
d) None of these|D|14|
14. Which of the following diseases is excluded under
Hospitalisation Section of Tribal Package insurance?
a) Tuberculosis
b) Leprosy
c) Cancer
d) None of these|D|14|
15. Under IRDA Regulations every insurer shall underwrite
business in the rural sector to the extent of at least how many % of the
total gross premium in the first financial year?
a) 1%
b) 2%
c) 3%
d) 5% |B|14|
260
1~
F(b) I
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CHAPTER 15
1. Which of the following claims have to be supported
by independent medical report?
a) Personal Accident
b) Cattle
c) Third Party (Injury)
d) All the above|D|15|
2. In which of the following claims, the report
of Average Adjusters is necessary?
a) Actual total loss of ship
b) Constructive total loss of ship
c) Particular average
d) General average|D|15|
3. Which of.the following is true as Per the Arbitration
condition in fire and most miscellaneous policies?
a) All differences in respect of a claim are to be referred
to arbitration
b) Differences regarding amount of claim only to
be paid are to be referred to arbitration
c) Both these
d) Neither of these|B|15|
4. In respect of goods insured under marine cargo policy
which are safely landed but subsequently missing,
the responsibility for the loss lies with:
a) shipping company
b) railways
c) road carriers
d) Port trust authorities|D|15|
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