FIRE/ ENGINEERING – I

1. Under EAR Policy “Cold Testing” means

a. Plant is situated at cold place
b. Checking of parts under cold condition
c. Testing of parts under “No Load” condition
d. Testing of parts under full load conditions

2. “Hot Testing” under EAR policy means

a. Plant is situated at hot place
b. Checking of parts under hot condition
c. Testing of parts under full or partial load
d. Testing of parts under full load conditions

3. Annual Gross profit means

a. Net profits plus standing charges
b. Turnover minus variable cost
c. None of the above.
d. Both of ‘a’ and ‘b’

4. The force which causes the current to flow through circuit is known as
a. Electro-magnetic Force (EMF)
b. Watt
c. Horsepower
d. None of the above

5. Eng. Insurance covers except one peril, choose correct answer

a. Damage or breakdown of plant and machinery
b. Normal wear and tear
c. Legal liability for injury caused by damage or breakdown of plant
d. Legal liability for damage to surround property of others caused by
damage to plant and machinery
Ans: b (Normal Wear and Tear)

6. Certain discount may be given in electric equipment policy if the same property
covered under Fire Policy
a. 5%
b. 10%
c. 25%
d. 50%
7. Partial cover under Fire policy
a. Can be granted
b. Can be granted only after charging short period premium rate
c. Can not be granted
d. None of the above
8 Local Authorities Clause under Fire Policy is applicable under
a. Declaration policy
b. Standard Fire Policy
c. Reinstatement value Policy
d. Floater Declaration Policy

9 Peril is
a. A cause of loss
b. A degree of loss
c. System to reduce the loss
d. None of the above

10. “Without prejudice” means

a. Liability is admitted
b. Liability is not admitted
c. Claim is rejected
d. Claims is payable

11. “Ejusdem generics” rule means

a. Of different kind
b. Of same kind
c. None of the above
d. Both of the above

12. Which of the following is operational phase policy and not construction phase
policy under engineering insurance
a. Contractors All Risk
b. Electronic Equipment
c. Erection All Risk
d. Marine-cum-Erection

13. Which one of the following is not the common general exclusion under
engineering policy
a. Willful negligence of the insured
b. Cessation of work
c. Cost of clearance and removal of debris
d. War and nuclear risks

14. Machinery Loss of Profits Policy (MLOP) does not provides indemnity against
which one of the following
a. Loss of net profit
b. Insured standing charges
c. Increased cost of working
d. Civil engineering works
15. Which of the following perils form part of the basic package of standard fire and
special perils policy
a. Earthquake
b. STFI
c. Spontaneous combustion
d. Leakage & contamination
16. STFI peril can be deleted from Standard Fire Policy.
a. At inception only
b. After 3 months from the issuance of policy
c. Can be deleted any time during the currency of policy
d. Cannot be deleted at all
17. Valued policy under Fire can be issued to
a. Obsolete machinery
b. New machinery
c. Second hand machinery
d. None of the above.
18. Long term policies under Fire can be issued to
a. Godown
b. Dwellings
c. Manufacturing units
d. None of the above.
19. If a policy is cancelled at the option of insured:
a. Premium adjustment is made on pro-rata basis
b. Premium can not be refunded
c. Premium adjustment is made on short period basis
d. Policy cannot be cancelled by the insured.
20. The silent risk rate would not be charged if the following is more than the silent
rate
a. Manufacturing rate
b. Storage rate
c. Earthquake rate
d. In any case silent rate would only be charged
21. Which of the following peril is not wind related
a. Storm
b. Inundation
c. Cyclone
d. Hurricane

22. Rates for 5 months short period insurance

a. 40%
b. 50%
c. 60%
 d. 70%

23. Cancellation at the option of insured the premium retained by one of the
following method
a. Short period scale
b. Pro-rata basis
c. 50% of premium should be retained
d. No refund of premium

24. Silent rates allowed for the one of the Fire Tariff Section
a. Section I
b. Section II
c. Section IV
d. Section VIII

25. Fire declaration policy cannot be issued for the one of the following items
a. Stock
b. Stock in process
c. Raw materials
d. Finished goods

26. FEA discount can be granted by one of the following methods. Choose the
correct one
a. Mere installation of FEA
b. Inspection of company engineers/ accredited engineers/ agencies by IRDA
c. Insurer can grant at their wishes
d. None of the above

27. The sum insured at any one location for issuing Mega risk policy is:
a. Rs. 5000 crores
b. Rs. 10000 crores
c. Rs. 12000 crores
d. None of the above amount
28. The fire policy covers the following perils except one on payment of additional
premium
a. Earthquake
b. Architects etc. feels
c. Debris removal
d. Forest fire
29. The one of the peril not covered under the basic fire policy
a. Damage by smoke and heat of the fire
b. Damage caused deliberately or accidentally by fire-brigades in the
discharge of their duties
c. Damage to property removed from a burning building caused by exposure
to weather
 d. Destruction or damage to property insured by its own fermentation or
spontaneous combustion
30. Exgratia settlements are made by
a. Claim settlement authority
b. One step above
c. Regional claims committee
d. Board of directors

31. Following is not an annual policy

a. MI b. B.P.P c. EAR d. EEI

32. Under EAR/CAR POLICY installment of premium facility is allowed only if the
period is more than
a. TEN MONTHS b. SIX MONTHS c. NINE MONTHS. D. TWELVE MONTHS.
33 The last premium under EAR/CAR Policy where installment facility has been granted
has to be made before
a.THREE MONTHS b. SIX MONTHS c. NINE MONTHS d. EIGHT
MONTHS
34 How many types of EXCESS are available in long term project policies
a.THREE b. FOUR c. FIVE d. SIX
35. Incase of EAR/CAR Policy premium is to be paid from the
a.FIRST CONSIGNMENT ARRIVED AT SITE b. DATE OF PROPOSAL c. DATE
OF SHIPMENTS/DESPATCH OF PROJECT MATERIAL
36. Sum Insured under MI/EEI Policy should be
a. MARKET VALUE b. WRITTEN DOWN VALUE c. NEW
REPLCEMENT VALUE d. PRESENT VALUE
37. EEI policy does not cover
a.DESKTOP b. LAPTOP c. PRINTER d. CPU
38. A separate CAR policy should be issued if total value of Civil work exceeds
a.25% PROJECT VALUE b. 40% PROJECT VALUE c. 50% PROJECT VALUE
d. NO RESTRICTION
39. Time EXCESS under MLOP Policy is
a.THREE DAYS b. SEVEN DAYS c. TEN DAYS d. NONE
40.How many classified group of machineries available under CPM Policy?
a.SEVEN b. FIVE c. TEN d. THREE
41. Is it necessary to admit a loss under MI Policy before a claim under MLOP Policy?
a.YES b. NO

42 Mobile Construction equipments can be covered under

MOTOR POLICY b. CAR POLICY c. CPM POLICY d. BOTH a & c