INSURANCE

Life Insurance

1. Write a note on advantages and disadvantages of whole life policies.

2. Explain in brief any three type of life insurance policies.

3. What are the elements of risk in life insurance?

4. Who is Actuary, Under the Life Insurance business?

General Insurance

1.What is General Insurance?

2. Enumerate principle of Indemnity in General Insurance

Motor Insurance

1. Write a brief note on insurance of motor vehicle against third-party risks.

2. In case of a motor insurance policy who is the third party?

3. What is the duration of Motor Insurance Policy?

4.Explain third party motor insurance.

5.Explain claims tribunal under the Motor Vehicles Act, 1988.

Fire Insurance

1.What is Fire Insurance business?

2. Explain the nature of Fire Insurance

3. "Mention any Five ways in which you can prevent Fire Accidents?

4. What are the incidental losses covered in Fire Insurance?

5. What is Fire Insurance Business?

6. What is principle of indemnity in case of fire?

Marine Insurance

1. What is Pirate

2.Explain the Perils of Sea.

3.What is insurable property under the Marine Insurance?

4. Floating policy by ship

5.Explain Hull insurance and Cargo insurance.

6. What is Freight Insurance?

7. What is total loss in Marine Insurance?

8. Write a short note on the essential features of a Marine Insurance Policy?

9. Describe the subject matter of Marine Insurance.

10. What is insurable property under The Marine Insurance Act, 1963?

11.Explain Voyage in detail.

12. Mention any 3 kinds of marine insurance policies

13. Explain the role of an underwriter in insurance company

14. What is insurable property under The Marine Insurance Act, 1963?

15. What is the meaning of Maritime Perils under Marine Insurance Act, 1963?

General Questions:

1. What are the different types of perils?

Ans: In insurance, a peril has a very particular meaning: a specific cause of

damage or injury. Peril is defined as the cause of loss.

How peril, hazard and risk differ – E.g.. The low-hanging brush increased the risk of
a wildfire destroying James' home.

In this scenario, the wildfire is an example of a peril: something that can damage
your home. And the low-hanging brush is a hazard: it increases the likelihood that a
peril will cause damage to your home. Risk describes the likelihood that a specific
peril, or perils overall, will cause damage to you or your property.
3 categories of perils are - natural perils, human perils and economic perils.

Sample list of insurance perils -

 Fire/lightning
 Windstorm/hail
 Earthquakes/ landslide
 Explosion
 Riot/civil commotion
 Aircraft
 Vehicles
 Smoke
 Vandalism/malicious mischief
 Theft
 Falling objects
 Weight of ice, snow, sleet
 Accidental discharge/overflow of water or steam
 Sudden tearing apart, cracking or bulging (in water/air systems)
 Freezing
 Damage from electrical current
 Volcanic eruption

2. what are the different modes of discharge of insurance contract?

Ans:

3. What are the power and functions of the I.R.D.A?

Ans: Under Section 14 of the Insurance Regulatory and Development Authority

(IRDA) Act, 1999, IRDA has the following powers/functions:

(a) Issue of Certificate of Registration to insurance companies, renew, modify,

withdraw, suspend or cancel the certificate of registration

(b) Protection of interests of policyholders in matters concerning assignment of

policies, nomination, insurable interest, claim settlement, surrender value and other
terms and conditions of insurance contract
(c) Specification of requisite qualifications, practical training and code of conduct for
insurance agents and intermediaries

(d) Specification of code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with

insurance and reinsurance business

(g) Levying fees and other charges for carrying out the purposes of the Act

(h) Calling for information from or undertaking inspection of insurance companies,

intermediaries and other oganisations connected with insurance business

(i) Control and regulation of rates, advantages, terms and conditions that may be
offered by general insurance companies

(j) Specifying the form and manner in which books of account shall be maintained by
insurance companies and intermediaries

(k) Regulation of investments of funds by insurance companies

(l) Regulation of maintenance of margin of solvency

(m) Adjudication of disputes between insurers and insurance intermediaries

(n) Supervising the functioning of Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes
for promoting and regulating professional organizations

(p) Specifying the percentage of insurance business to be undertaken by insurers in

rural or social sectors

(q) Such other powers as may be prescribed.

4. Explain the principle of uberrima fides and its significance in insurance.

Ans: Principle of utmost good faith: Uberrima fidesis a Latin phrase meaning
"utmost good faith" (literally, "most abundant faith"). It is the name of a legal doctrine
which governs insurance contracts. This means that all parties to an insurance
contract must deal in good faith, making a full declaration of all material facts in the
insurance proposal. It is defined as “firm adherence to promises made to another
including disclosure of all relevant facts and complete trust in the fidelity of
the other.”

Insurance being a device of risk transference stands on a separate basis. In

the case of Insurance contract, since the product is intangible, the required facts
which relate to the proposer and which are very personal are known only to him. The
non-disclosure of a material fact by the assured whether fraudulent or innocent, has
the same effect of avoiding the contract. A stringent duty is imposed on the assured
to provide all the material facts that might influence the decision of the insurer.

The term “Material” means all those facts which has a significant bearing and
impacts on the two most important factors namely Risk involved and its severity and
also amount of premium. The breach of utmost good faith arises due to
misrepresentation, concealment of material facts etc.

Section 45 of the Insurance Act, 1938 says that after the expiry of two years from the
date on which it was affected no policy of life insurance be called in question by an
insurer on the ground that a statement made in the proposal for insurance or in any
report of a medical officer, or referee, or friend of the insured, or in any other
document leading to the issue of the policy, was inaccurate or false. The insurer
cannot avoid the consequences of the insurance contract by simply showing
inaccuracy or falsity of the statement made in the proposal form but has to prove
under section 45 that the life insurance policy has been obtained by means of
fraudulent misrepresentation. The insurer has also to show:

(1) That such statement was on a material matter or suppressed facts which it was
material to disclose and,

(2) That it was fraudulently made by the policyholder and,

(3) That the policyholder knew at the time of making it that the statement was false
or that it suppressed facts which it was material to disclose.

5. The provision of Assignment has been explained under section 38 of Insurance

Act 1938

6. What is Lapse of Policy

7. What is Aleatory contract

8. Main condition of Children Endowment policy?

9. What do you understand by Term Insurance

10. What is suicide clause?

11. What is disability benefit?

12. What is Maturity of policy?

13. What is “Lost and not lost clause‟?

14. What are the fundamental principles of insurance?

15. What are the functions of insurance?

16. What is the purpose of Public Liability Insurance Act, 1991?

17. Public Liability compulsory policy is result of which Act and which event triggered
the need for the same?

18. Explain the concept of Indemnity.

19. What is role of Third Party Administrator?

20. What do you understand by the insurable interest? Explain with an example.

21. Main condition of Children Endowment policy?

22. What is disability benefit?

23. What is Maturity of policy?

24.Explain Causa Proxima.

25.Explain the ingredients of contract of insurance.

26.Explain insurable interest in detail.

27.Explain the Double Insurance and Reinsurance.

28.What is social insurance?

29. What is constructive total loss?

30. What do you mean by Premium?

31. What is mean by Contribution?

32. State the “Principle of no fault” under Public Liability Insurance Act, 1991.
33. What is meaning of Maturity of policy?

34. What is Discharge of Contract?

35. What is disability benefits?

36. What is “Touch and Safety” clause?

37. Who is an appointing authority of the chairman of the corporation as per the Life
Insurance Corporation Act 1956?

38.Discuss in detail the Doctrine of Subrogation and Contribution.

39.Santosh insured his sugar in the godown against fire for an amount of Rs.50
lakhs. In a fire accident his sugar stock worth of Rs.38 lakhs lost by fire. To what
extent does the insurance company liable for the loss?

40.Shankar received the insurance amount in full and final settlement of his claim.
But the company made a delay in payment of the amount. Whether Shankar is
having right to make a complaint for delay in payment?

41.The policy on a ship on a round voyage from Mumbai to Chennai. But from
Chennai to Mumbai she neglected to take sufficient coal as its fuel to reach Mumbai
and as a consequence she had to burn some her fittings and cargo as fuel and
claimed the loss. Whether insurer is liable for such a loss?

42.Ram issued insurance policy from insurance company. He already have health
problems before issuing this policy. Which principle is used in this situation? Explain.

43. Is it true that husband has insurable interest in his wife‟s life? Explain.

44.What do you mean by Maturity of Policy?

45. Define- Insurance Contract.

46. Discuss the concept of Public Liability Insurance.

47. Explain the concept of Annuity?

48. "Mention any Three Advantages and Three Disadvantages of 'Group Insurance'
49. "Discuss the salient features of the famous 'New India Assurance Co ltd v State
Trading Corporation of India' case.

50. "Mention any Three Advantage and Three Limitations of a “Keyman Insurance
Policy‟?