Questions - IC 38

Q1.
The legal right to insure means

Option 1 : Consideration as per Indian Contract Act
Option 2 : Competence as per Indian Contract Act
Option 3 : Assignment
Option 4 : Insurable interest
Correct Answer Option : 4
Q2. Under Motor Insurance Ambulance will be classified under which class?
Option 1 : Goods Carrying Vehicles
Option 2 : Passenger Carrying Vehicles
Option 3 : Private Vehicles
Option 4 : Miscellaneous Vehicles
Q3. Deductible is also termed as

Option 1 : Franchise
Option 2 : Warranty
Option 3 : Excess
Option 4 : Exclusion
Q4. Under institute cargo clauses (AIR), at extra premium 1 war risks can be covered (2) Strike,
riots and civil commotion risks can be covered.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is True
Q5. Which of the following falls under Extraneous Risks?

Option 1 : Lightning
Option 2 : Volcanic eruption
Option 3 : Rain water damage
Option 4 : Earthquake
Q6. The duty of disclosure of material information

Option 1 : Applies to insured
Option 2 : All of the above
Option 3 : Applies to the insurer
Option 4 : Applies to the agent
Q7. Annual gross profit Rs. 1, 20,000/- Calculate the sum insured under consequential loss (fir
policy for a period 9 months.)
Option 1: Rs. 1,20,000/-
Option 2: Rs. 60,000/-
Option 3: Rs. 1,80,000/-
Option 4: Rs.90,000/-

Q8. Which of the following documents is not required for processing private car Own Damage
Claims?
Option 1: Registration certificate book
Option 2: Final bill from repairers
Option 3: Driving license
Option 4: Fitness Certificate
Q9. Which of the following covers in Householders Package insurance is not included in
Shopkeepers Package insurance
Option 1: Personal baggage
Option 2: Legal liability to third parties
Option 3: Fixed Plate glass
Option 4: Television
Q10. The TAC in India is mainly concerned with the

Option 1 : regulating of rates
Option 2 : issuance of policies
Option 3 : investments of the funds
Option 4 : licensing of the agents
Q11. Fire Consequential loss policy pays the insured

Option 2 : Increased cost of working
Option 3 : Net profit
Option 4 : Standing charges
Q12. Cargo carried by an airline will usually be covered under what class of business?
Option 1 : Marine.
Option 2 : Aviation.
Option 3 : Casualty.
Option 4 : Property.
Q13. A Broker has been bringing significant amount of profitable business to an Insurer. However
one of their Corporate Client is not covered for a particular claim event due to misunderstanding
or administrative error. In this case an Insurer may pay a claim when
Option 1: the insurer makes an ex-gratia settlement
Option 2: an insurer exercises subrogation rights against a negligent third party
Option 3: Settlement is made through the IRDA Claim Scheme
Option 4: the claim applies to compulsory insurance
Q14. Under the private car package policy the towing charges in respect of a damaged vehicle mea
Option 1 : Cost of removal to the nearest repairer
Option 3 : Cost of protection to the vehicle
Option 4 : Cost of re-delivery to the insured

Q15. Which of the following are general exclusions (all sections) of Overseas Medical Policy?
Option 1 : Professional Sports events
Option 3 : Naval ,Military Or operations
Option 4 : Hazardous sports
Q16. As per Mediclaim policy, 1 Expenses on Hospitalization for a minimum period of 24 hours are
admissible (2) This time limit is not applied if the insured is discharged the same day after specific
treatment e.g. Dialysis.
Q17. The Operative clause is also known by which other name?

Option 1 : Preamble
Option 2 : Policy Condition
Option 3 : Insuring Clause
Option 4 : Signature Clause
Q18. The principle of indemnity arises under the

Option 1 : Insurance Act 1938 (as amende
Option 2 : Indian Contract Act
Option 3 : Common Law
Option 4 : IRDA Act
Q19. The object of the principle of indemnity is to

Option 1 : Prevent the insured from making any profit out of his loss
Option 2 : Pay the full cost of replacement
Option 3 : Pay the cost of reinstatement
Option 4 : Pay the full cost of repairs
Q20. Which of the following does not appear in the indemnity clause of Workmens Compensation
insurance?
Option 1: Common Law
Option 2: Fatal Accidents Act
Option 3: Employees State Insurance Act
Option 4: Workmens Compensation Act
Q21. Which of the following statements is True? 1 no claim bonus is computed on the Own Damage
premium required for renewal of the policy 2 when there is transfer of interest in the policy from
one insured to another the transfer of no claim bonus is not automatic
Option 1 : Both are true
Option 2 : Statement 2 is True
Option 4 : Both are false
Q22. The basis of valuation adopted under marine open cover is the prime cost freight and
insurance plus ___ % to cover profits.
Option 1: Rail dispatches
Option 2: Inland waterways dispatches
Option 3: Export/import shipments
Option 4: Road dispatches
Q23. The minimum paid up capital required for a General Insurance Company is Rs. ____
Option 1 : 200 crores
Q24. Relevant medical expenses incurred during upto _______ days prior to hospitalization are
treated as part of the claim.
Option 1: 15 day
Option 2: 60 days
Option 3: 45 days
Option 4: 30 days
Q25. A waiting period of ________ months is applicable for payment of a maternity claim.
Option 1 : 12 moths
Option 2 : 10 months
Option 3 : 9 months
Option 4 : 8 months
Q26. Which of the following types of specific treatment are exempted from minimum 24 hours stay
in a hospital?
Option 1: Lithotripsy
Option 2: Radiotherapy
Option 3: All of the above
Option 4: Chemotherapy
Q27. Which of the following are material facts? The fact that previous insurers
Option 1 : Had refused to renew the policy
Option 2 : Charged extra premium
Option 4 : Had rejected the proposal
Q28. Fluctuation Reserves are classified under the heading

Option 1 : Asset Liability reserves
Option 2 : Technical Reserves
Option 3 : Accounting reserves
Option 4 : Unexpired Premium
Q29. Which of these is an add-on cover under Fire Insurance Policy?

Option 1 : Aircraft Damage
Option 2 : Storm
Option 3 : Removal of Debris
Option 4 : Missile testing operation
Q30. The duty of disclosure of material information

Option 1 : Applies to the agent
Option 2 : Applies to the insurer
Option 3 : Applies to insured
Q31. Which of the following is True under private car package policy? 1 the liability of insurer loss
does not exceed insured declared value less the value of the wreck. (2) The liability losses does
not exceed of repair / replacement less depreciation
Q32. Who does the pricing of the products?

Option 1 : Surveyor
Option 2 : Risk Engineer
Option 3 : Loss Assessor
Option 4 : Actuary
Q33. As per IRDA regulation which of the following is not a function of third party administration.
Option 1 : Administration to a specified hospital without administration fees payment
Option 3 : Discharge from specified hospital without payment of covered expenses of treatment
Option 4 : Admission to a specified hospital without deposits
Q34. The claims loading applied to a policy is known as

Option 1 : Claims Fides
Option 2 : Claims Bonus
Option 3 : Claims Minus
Option 4 : Claims Malus
Q35. Turnover is Rs.10 lacs. Cost of production Rs. 7 lacs. Fixed overheads Rs.2 lacs. Calculate the
net profit for consequential loss (fir policy.
Option 1 : 1 lacs
Option 2 : 8 lacs
Option 3 : 5 lacs
Option 4 : 3 lacs
Q36. Pick the False Statement among the following

Option 1 : Fidelity policies are available to reward employees who have an honest track record.
Option 2 : The loss is distributed among the insurers under contribution, thus it differs from subrogation
Option 3 : Insolvency or financial default of the owners, operators, etc of the vessel is a general exclusion under
the marine insurance policy
Option 4 : The loss that cannot be measured in financial terms caused by pure risk cannot be insured.
Q37. Under which of the following circumstances reinstatement basis of settlement will not apply
under Fire reinstatement value policy.
Option 1 : insured is unable to replace the damaged property
Option 2 : insured fails to intimate to the insurer within 6 months or any extended time to replace the damaged
property
Option 3 : All the above three
Option 4 : insured is unwilling to replace the damaged property
Q38. General Accounting must be in line with which of the following?

Option 1 : International Accounting Standards
Option 2 : Accounting Standards Issued by ICAI
Option 3 : GAAP Standards Risk
Option 4 : IRDA Investment Regulations 2000
Q39. When there are several policies on the same subject-Matter, each insurer pays only a
proportion of the loss. This is know as
Option 1: Subrogation
Option 2: Pro-rata Average
Option 3: Contribution
Option 4: Franchise
Q40. Which of the below companies is a specialist in health insurance?

Option 1 : Bajaj Allianz
Option 2 : ICICI Lombard
Option 3 : Max Bupa
Option 4 : HDFC Ergo
Q41. Under the private car package policy the towing charges in respect of a damaged vehicle mean
Option 1 : cost of removal to the nearest repairer
Option 2 : cost of re-delivery to the insured
Option 4 : cost of protection to the vehicle

Q42. Which of the following project does not fall under contractors all Risk policy?
Option 1 : Bridges
Option 2 : Installation of machinery
Option 3 : Buildings
Option 4 : Tunnels
Q43. In Respect of Goods insured under marine cargo policy which on safely missing, the
responsibility for the loss lies with
Option 1: Shipping company
Option 2: Port trust authorities
Option 3: Road carriers
Option 4: Railways
Q44. Which of the following statements is True? (1) In fire insurance interest is required both at the
time of taking the policy and at the time loss. (2) In marine hull insurance insurable interest is
required both at the time of taking the policy and at the time of loss
Option 1: Only 2 Both are false
Option 3: Only 1
Q45. Which of the following is covered under private car package policy?
Option 1 : Transit of the named vehicle by air
Option 2 : Transit of the insured vehicle by road
Option 3 : Transit of the insured vehicle by rail
Q46. Forceful entry is the chief characteristic of

Option 1 : Theft
Option 2 : Arson
Option 3 : Burglary
Option 4 : Larceny
Q47. Turnover is Rs.20 lacs.Cost of production Rs. 14 lacs. Fixed overheads Rs. 4 lacs. lacs.
Calculate the sum insured for a consequential loss (fir policy.
Option 1: Rs. 6 lacs
Option 3: Rs, 10 lacs
Q48. Renewal notice is issued because

Option 1 : It is provided by policy condition
Option 2 : It is a healthy business practice
Option 3 : Of IRDA regulations
Option 4 : It is required under the insurance act

Q49. A Fire policy is a
Option 1 : Indemnity policy
Option 2 : Unvalued policy
Option 3 : Agreed value policy
Option 4 : Valued policy
Q50. What is covered under the construction phase of the offshore operations of Oil and Gas?
Option 1 : Driving Steel Piles
Option 2 : Vessels
Option 3 : Off-Shore Platform
Option 4 : Drilling Units and Equipment
Q1. What is covered under the construction phase of the offshore operations of Oil and Gas?
Option 1 : Driving Steel Piles
Option 2 : Vessels
Option 3 : Off-Shore Platform
Option 4 : Drilling Units and Equipment
Q2. Under Fidelity Guarantees, the customary time limit for discover of loss is not later than?
month after the resignation of the dishonest employee.
Option 1: 6
Option 2: 12
Option 3: 18
Option 4: 24
Q3. Which policy covers damage to actual structure of the vessel?

Option 1 : Marine Cargo Insurance
Option 2 : Marine Hull Insurance
Option 3 : Both of the above
Option 4 : None of the above
Q4. Which of the following is not required for the Underwriting return?
Option 1 : Monthly Claims Paid Settlement
Option 2 : Preliminary Intimation of Claims
Option 3 : Analysis of Number of claims
Option 4 : Summary statement of Gross Premium
Q5. Which of the following is not the correct reason? Insurer requires material information.
Option 1 : To fix the sum insured
Option 2 : To fix terms and conditions of cover
Option 3 : To fix the rate of premium
Option 4 : To decide about acceptance
Q6. Where has been the General Insurance Council Setup?

Option 1 : Chennai
Option 2 : Mumbai
Option 3 : Kolkotta
Option 4 : Delhi
Q7. The information necessary to complete a burning cost rating calculation is

Option 2 : Claims experience split between claims paid and claims outstanding
Option 3 : Turnover or wages
Option 4 : Previous Insurers for each of the past five years
Q8. Under which of the following fidelity guarantee policies, per capita additional premium is
charged
Option 1: Positions
Option 2: Collective
Option 3: Blanket
Option 4: Floating
Q9. Which of the following are covered in fire insurance?

Option 2 : Raw materials
Option 3 : Semi-finished goods
Option 4 : Packing materials
Q10. Which one of the following is considered an uninsurable peril

Option 1 : Losses arising out of fire
Option 2 : Losses arising out of war and war like operations
Option 3 : Property risk
Option 4 : Travel risks
Q11. Which of the following appear as exclusions under personal accident insurance?
Option 1 : Accident indirectly caused by insanity
Option 2 : Child birth or pregnancy
Option 3 : Service in the armed forces
Q12. The Operative clause is also known by which other name?

Option 1 : Insuring Clause
Option 2 : Preamble
Option 3 : Policy Condition
Option 4 : Signature Clause

Q13. Under which of the following the seller arranges cargo insurance for the entire voyage.
Option 1 : CIF contract
Option 2 : C&F contract
Option 3 : FOR contract
Option 4 : FOB contract
Q14. As per Mediclaim policy, 1 Expenses on Hospitalization for a minimum period of 24 hours are
admissible (2) This time limit is not applied if the insured is discharged the same day after specific
treatment e.g. Dialysis.
Q15. A Fire policy is a

Option 1 : Agreed value policy
Option 2 : Indemnity policy
Option 3 : Valued policy
Option 4 : Unvalued policy
Q16. Which of the following statement is True? (1) State commission can entertain appeals against
the order of the district forum. (2) National commission can entertain appeals against the order of
the state commission.
Q17. Cyber Liabilities cannot Insure which of the following?

Option 1 : Liability for the Insured for spreading a virus to the third party
Option 2 : Deliberate Malicious Files from the Insured to the third party
Option 3 : Losses arising from Hacking into the insureds server
Option 4 : Losses occurred because Third Parties could not access the system
Q18. A trader has stocks stored in more than one warehouse. If he wants to insure the stocks,
which policy is suitable for him?
Option 1: All Risk policy
Option 2: Key man insurance policy
Option 3: Declaration policy
Option 4: Floater policy
Q19. In case of Taxies which of the following is False?

Option 1 : Taxies upto 3 years old will be issued comprehensive cover
Option 2 : Taxies which are 5 to 7 years old shall be issued subject to inspection and additional excess
Option 3 : Taxies whose age is above 7 years shall be issued comprehensive cover subject to inspection and
additional excess
Option 4 : Taxies upto 5 years old will be issued comprehensive cover subject to inspection
Q20. Which of the following risk covered under institute cargo clauses ( are not covered under
cargo clauses )
Option 1: Stranding of vessel
Option 2: Collision of vessel
Option 3: Explosion
Option 4: Sea water damage
Q21. Which of the following is not available under group Mediclaim policy?
Option 1 : Group discount
Option 2 : Maternity extension
Option 3 : Cumulative
Option 4 : No claim bonus
Q22. Turnover is Rs.20 lacs.Cost of production Rs. 14 lacs. Fixed overheads Rs. 4 lacs. Net Profit
Rs.2 lacs. Calculate the sum insured for a consequential loss (fir policy.
Option 3: Rs, 10 lacs
Q23. Under which of the following clauses, the insured has to bear a part of the loss.
Option 1 : Excess clause
Option 2 : All the above clauses
Option 3 : Franchise clause
Option 4 : Pro-rata average
Q24. Which of the following is True in relation to personal accident insurance.(1)the cover is on 24-
hour basis (2) The geographical area of cover is India
Q25. Reserves for incurred but unreported claims come under the heading
Q26. How much is the amount of claim payable , if sum insured is Rs. 2 Lakhs, the excess limit is Rs.
20,000/- and the loss is Rs. 25,000 /-
Option 1: Rs.15,000
Option 2: Rs. 20,00
Option 3: Rs. 25,000
Option 4: Rs.5000
Q27. Gross profit, in the context of consequential loss (fi policy means.
Option 1 : Net Profit and standing charges
Option 2 : Turnover minus variable and standing charges
Option 3 : Net profit and cost of production
Option 4 : Net Profit and variable charges
Q28. Relevant medical expenses incurred during upto _______ days prior to hospitalization are
treated as part of the claim.
Option 1: 15 day
Option 2: 60 days
Option 3: 45 days
Option 4: 30 days
Q29. Who devises the Institute Time Clauses?

Option 1 : General Insurance Corporation
Option 2 : Insurers
Option 3 : Institute of London Underwriters
Option 4 : IRDA
Q30. The definition of proximate cause includes which of the following features of the cause?
Option 1 : Dominant
Option 2 : Operative
Option 4 : Effective
Q31. Which of the following falls under Extraneous Risks?

Option 2 : Volcanic eruption
Q32. Which of the statements is correct? (1) Subrogation does not arise in personal accident
insurance. (2) Contribution does not arise in personal accident insurance
Option 1: Neither is correct
Option 4: Both are correct

Q33. Which of the following statements is True? Motor third party premium shall be shared amount
all the general insurers writing motor insurance in proportion to gross direct premium in (1) Motor
insurance business 2 All classes of general insurance business
Option 1: insurance business 2 All classes of general insurance business
Q34. Which of the following statements is True.1 the duration of cover for marine risks is for the
entire voyage on a warehouse to warehouse basis. 2 the duration of cover for war risks is
restricted to the time when the goods are waterborne and not on land.
Option 1: Statement 1 is true
Option 4: Both are true.
Q35. Which of the following property is covered under the fire policy if expressly stated in the polic
Option 1 : books of account
Option 2 : all the above
Option 3 : business books
Option 4 : computer system records

Q37. Which of the following risk covered under institute cargo clauses ( are not covered under
cargo clauses )
Option 1: Sea water damage
Option 2: Stranding of vessel
Option 3: Collision of vessel
Option 4: Explosion
Q38. Under IRDA guidelines which of the following policies fall under Exposure rated products.
Option 1 : Policies with a sum insured of Rs 2500 crores or more at one location for combined material damage and
business interruption
Option 2 : Earthquake risk
Option 3 : Policies with a sum insured of the Rs.2500 crores or more at one location for material damage
Option 4 : Liability insurance (Rs100 crores or more per event)
Q39. Which of the following is true No insurer shall assume any risk unless and until
Option 2 : the premium is received in advance
Option 3 : a deposit is made in advance
Option 4 : the premium is guaranteed to be paid
Q40. The legal right to insure means

Option 1 : Competence as per Indian Contract Act
Option 2 : Assignment
Option 3 : Insurable interest
Option 4 : Consideration as per Indian Contract Act
Q41. Motor No-fault liability claims are decided by

Option 1 : Lok Adalat
Option 2 : Motor Accident Claims Tribunal
Option 3 : Civil Court
Option 4 : Lok Nyayalaya
Q42. Which of the following risks is NOT covered at extra premium under Burglary(Business)
premises policy?
Option 1: Strike
Option 2: Breakage of plate glass
Option 3: Terrorism
Option 4: Riot
Q43. A verylongstanding personal customer with no previous claims is Underinsured due to

Inflationary factors which he is unaware of. Unfortunately his property was damaged in a Fire
accident. In this case the Insurer may admit full claim eventhough he is underinsured since
Q44. If there is no insurable interest the insurance contract becomes

Option 1 : Unenforceable in a Court of Law
Option 2 : Void
Option 3 : Illegal
Option 4 : Voidable
Q45. Which of the following is covered under sheep & Goat insurance?
Option 1 : Cross -breed animals
Option 2 : Exotic animals
Option 4 : Indigenous animals
Q46. Which among the following is the definition of arbitration?

Option 1 : The act of complaining about the Insurer to the Magistrate
Option 2 : Litigation
Option 3 : Filing a case in the Legal Court
Option 4 : Method of Settling disputes in the policy
Q47. Which of the following are covered in fire insurance?

Option 1 : Raw materials
Option 2 : Packing materials
Option 4 : Semi-finished goods
Q48. As per the IRDA Regulation in which of the following insurance written proposal is not
necessary?
Option 1: Marine cargo insurance
Option 2: Compulsory public liability
Option 3: Fidelity Guarantees
Option 4: Fire insurance on cargo industrial risks
Q49. Which of the following statements is correct? The duty of disclosure of material facts (1)
Ceases when the policy is issued. (2) Arises again at the time of renewal of the policy
Option 3: Both are correct
Option 4: Both are incorrect
Q50. What Kind of Losses are covered by Inland Transit Clauses (Rail or Roa Clause)?
Option 1 : Physical loss due to breakage of Bridges
Option 2 : Inherent vice
Option 3 : Loss due to Financial default
Option 4 : Insufficiency in Packing


Q2. Which of the following statements is True (1)terrorism is exclusion under the standard fire and
special perils policy only. (2) Terrorism can be covered at extra premium along with riot, strike
and malicious damage.
Q3. Rajesh Car collides with another car and the other car driver is injured. Who will pay for the
claims of the other driver?
Option 1: Rajesh will pay from his own pocket
Option 2: The other driver will have to pay on his own for the treatment costs as he does not have any insurance
Option 3: Third Party Insurance pool
Option 4: Rajesh Insurance Company
Q4. Which of the following is not taken into consideration for fixing rates of premium for buses
( Package policy)?
Option 1: Age of vehicle
Option 2: Licensed passenger capacity
Option 3: Insured declared value of vehicle
Option 4: Geographical Area
Q5. Which of the following property is covered under the fire policy if expressly stated in the policy
Option 1 : Business books
Option 2 : Books of account
Option 4 : Computer system records
Q6. Which of the following does not affect the amount of loss payable under the policy?
Option 1 : Pro-rate average
Option 2 : Breach of utmost good faith
Option 3 : Salvage
Option 4 : Excess clause
Q7. In case of Motor Insurance of Private Cars if the age of the vehicle is less than 15 years but
more than 10 years then Which of the following is True?
Option 1: Comprehensive cover subject to satisfactory inspection report
Option 2: Act Cover only
Option 3: Comprehensive cover subject to satisfactory inspection report and additional excess
Option 4: Comprehensive Cover Shall be issued
Q8. ________ are losses which are small and regular and which are almost inevitable
Option 1 : Chronic Losses
Option 2 : Sporadic Losses
Option 3 : none of the above
Option 4 : Catastrophes
Q9. Which of the following occupations does not fall under Group 2 for rating purposes (Personal
Accident)?
Option 1: Paid drivers of motor cars
Option 2: Lorry drivers
Option 3: Consulting Architects
Option 4: Motor mechanics
Q10. Under which of the following claims , the waiting period does not apply
Option 1 : Normal delivery
Option 2 : Applies to all
Option 3 : Abdominal operation for extra uterine pregnancy
Option 4 : Caesarean section
Q11. Which of the following falls under marine cargo insurance?

Option 1 : Import shipments
Option 3 : Rail / road consignments
Option 4 : Export shipments
Q12. Which of the following statements is True? (1) Compulsory excess is applicable to Doctors
professional indemnities (2) Compulsory excess is a applicable to professional indemnities for
medical establishments
Q13. Which of the following are standing charges?

Option 1 : Rent
Option 2 : Interest on loans from banks
Option 4 : Insurance premiums
Q14. Section 140 of the Motor Vehicles Act 1988 provides for liability of the owner of the Motor
Vehicles to pay compensation in certain cases on the principle of No Fault. How much
compensation is payable for Death in such cases?
Option 1: Rs 10,000
Option 2: Rs 50,000
Option 3: Rs 25,000
Option 4: Rs 1,00,000
Q15. Who does the pricing of the products?

Option 1 : Actuary
Option 2 : Surveyor
Option 3 : Loss Assessor
Option 4 : Risk Engineer
Q16. Which of the following statements is True? (1) Actual total loss occurs where the subject
matter of insurance is entirely destroyed. (2) Constructive total loss occurs where the cost of
repairs damaged goods exceeds the value of goods after repair.
Q17. Which type of insurance is compulsory by statute for companies which handle hazardous
substances?
Option 1: Employers liability
Option 2: Public liability
Option 3: Fidelity guarantee
Option 4: Products liability
Q18. Which of the following is not the correct reason? Insurer requires material information.
Option 1 : To fix terms and conditions of cover
Option 2 : To fix the sum insured
Option 3 : To fix the rate of premium
Option 4 : To decide about acceptance
Q19. 11. The deductible for perils other than act of god perils under standard fire and special perils
policy is
Option 1: Rs.20,000/- for each and every loss
Option 3: Rs 5000/- for each and every loss
Option 4: Rs. 10,000/-for each and every loss
Q20. Which of the following is not covered under fire floating policy?
Option 1 : Stocks in transit
Option 2 : Stocks in the open
Option 3 : Stocks in process blocks
Option 4 : Stocks in godown
Q21. The deductible for perils other than act of god perils under standard fire and special perils
policy is
Option 2: Rs 5000/- for each and every loss
Option 3: Rs. 10,000/-for each and every loss

Q22. 6. Which of the following are the function of IRDA .To protect the interests of policy holders in
matters of
Option 1: Terms and condition of insurance
Option 3: Fair and equitable rates of premium
Option 4: Settlement of claim
Q23. Subject to no claim, cost of medical checkup once in every _______underwriting years is
payable under Mediclaim policy.
Option 1: 4 years
Option 2: 5 years
Option 3: 3 years
Option 4: 2 years
Q24. The administrator of motor third party insurance is

Option 1 : GIC
Option 2 : General insurance council
Option 3 : IRDA
Option 4 : Motor Accident Claims Tribunal
Q25. Insurance contracts are not gambling transactions because

Option 1 : All material facts are disclosed
Option 2 : The policy is stamped
Option 3 : Full premium is paid
Option 4 : They are based on insurable interest
Q26. Cargo carried by an airline will usually be covered under what class of business?
Option 1 : Casualty.
Option 2 : Property.
Option 3 : Marine.
Option 4 : Aviation
Q27. When there is a possible claim the insured must initially advise the insurer within what time
period?
Option 1: Two Weeks
Option 2: Immediately
Option 3: One Week
Option 4: One month
Q28. Which of the following statements is True in the relation to Flight Coupons on declaration
basis? (1) Flight insurances coupons are issued to individuals. (2) Flight insurance coupons are
issued to companies in respect of their employees who travel by air frequently
Option 2 : Both are true
Option 4 : Both are false
Q29. Who among the following carries out the investigation for a claim for a small loss?
Option 1 : The Claimant
Option 2 : Independent Professional Person
Option 3 : Office of the Insurer
Option 4 : Independent Surveyors
Q30. Which amongt he following is the definition of Salvage?

Option 1 : The Property that is partially damaged
Option 2 : List of recoveries in the claims register
Option 3 : The Sum Insured under a Fire Policy
Option 4 : Claim Money for a Fire Policy under Mortgage
Q31. Which of the following are the function of IRDA .To protect the interests of policy holders in
matters of
Option 1: Settlement of claim
Option 2: Terms and condition of insurance
Option 4: Fair and equitable rates of premium
Q32. For which of the following diseases, medical certificate from a consulting physician is required
to be submitted along with the proposal form.
Option 2: Hypertension
Option 3: Diabetes
Option 4: Coronary insufficiency
Q33. Which of the following statements is True?

Option 1 : Insurance facilitates free investment of capital in business
Option 3 : Insurance encourages commercial and industrial development.
Option 4 : Insurance contributes to national productivity
Q34. What is the percentage of discount allowed to cover employment accident?

Option 1 : 95% of premium rate
Option 3 : 25% or Premium rate
Q35. If Insurance is required during inland transit from the factory or warehouse but the carrying
vehilce has already left the premises then the Insurance Company
Option 1 : Can give the coverage by accepting the premium
Option 3 : Can provide coverage on Ex Gratia basis
Option 4 : Can refuse the coverage
Q36. If Insurance is required during inland transit from the factory or warehouse but the carrying
vehilce has already left the premises then the Insurance Company
Option 1: Can provide coverage on Ex Gratia basis
Option 3: Can give the coverage by accepting the premium
Option 4: Can refuse the coverage
Q37. Which of the following statements is True? (1) the proposer need not disclose facts which he
considers as not material. (2) Facts which are of common knowledge need not be disclosed.
Q38. The gross premium includes besides risk premium a percentage of loading factor for
Option 1 : adverse claims experience
Option 2 : profits
Option 3 : Expenses
Option 4 : past losses
Q39. Which of the following is not covered under inland transit (rail/roa clause B.
Option 2 : Fire
Option 3 : Non delivery
Option 4 : Breakage of bridges
Q40. Which of the costs are payable under Mediclaim policy ?

Option 1 : Hearing aids
Option 2 : Lenses
Option 3 : Spectacles
Option 4 : Artificial limbs
Q41. Which of the following statements is True? (1) For export / import cargo policies, institute
cargo clauses (IC are used. (2) For inland transit consignments, local clauses are used.
Option 3: Is true
policy for a period 9 months.
Option 1: Rs. 1,20,000/-
Option 2: Rs.90,000/-
Option 3: Rs. 1,80,000/-
Option 4: Rs. 60,000/-
Q43. Which of the following are requisites of a valid insurance contract? (1) Consideration.
(2)parties of the same mind (3).parties are competent to contract
Option 2: Only Statement 1
Option 3: Both 1 and 2 are true
Q44. Excess of loss treaties can be classified as

Option 1 : per occurrence
Option 3 : aggregate excess
Option 4 : per risk
Q45. The main purpose of a proposal form is to

Option 1 : detail the amount of premium required
Option 2 : gather material facts
Option 3 : provide evidence of cover
Option 4 : outline policy exclusions
Q46. Which of the following statements is True? No0 medical examination is required for fresh
cover for personal accident insurance. 2 Medical Examination is required for renewal of personal
accident insurance
Q47. Under public liability Insurance Act 1991, the owner is not Liable to pay relief in the event of
Option 1 : Injury to any person not resulting in death
Option 2 : Damage to property of any reason
Option 3 : Injury to a workman within the meaning of workmens Compensation Act.
Option 4 : Death of any person
Q48. A verylongstanding personal customer with no previous claims is Underinsured due to

Inflationary factors which he is unaware of. Unfortunately his property was damaged in a Fire
accident. In this case the Insurer may admit full claim eventhough he is unde

Q49. Which of the following is not taken into consideration for fixing rates of premium for buses
( Package policy)?
Option 1: Geographical Area
Option 2: Insured declared value of vehicle
Option 3: Licensed passenger capacity
Option 4: Age of vehicle
Q50. Which of The Following is NOT covered under Burglary (Business Premises) Policy?
Option 1 : Damage to insured goods by burglars
Option 2 : Theft After forcible entry
Option 3 : Breakage of Windows by burglars
Option 4 : Damage to premises by burglars
Q51. Under Jewellers Block policy which of the following property is covered against specified risks
only and not on All Risks basis
Option 1: in transit by angadia
Option 2: in the custody of brokers
Option 3: on premises
Option 4: in transit by air freight
Q1. Under Jewellers Block policy which of the following property is covered against specified risks
only and not on All Risks basis
Option 1: in transit by angadia
Option 2: in the custody of brokers
Option 3: on premises
Option 4: in transit by air freight
Q2. Which of the following statements is True.1 Certificate of insurance under open policy is not
stamped. 2 Certificate of insurance under open cover is

Q4. Personal accident cover for owner-driver under liability only motor policy applies if the
Option 1 : Owner-driver in the registered owner of the insured vehicle.
Option 3 : Owner-driver is the insured named in the policy.
Option 4 : Owner0driver holds an effective license.
policy for a period 9 months.
Option 1: Rs. 1,20,000/-
Option 2: Rs.90,000/-
Option 3: 1,80,000/-
Option 4: 60,000/-
Q6. The maximum liability of the insurer under pubic liability insurance act 1991 to pay relief to
several claimants arising out of one accident shall not exceed____
Option 1: 10.00 crores
Option 2: Rs. 7.50 crores
Option 4: Rs.5.00 crores
Q7. Under fire policy pro-rata average applies when there is

Option 1 : Subrogation
Option 2 : Over insurance
Option 3 : Double insurance
Option 4 : Under insurance
Q8. Delay under ALOP is defined as

Option 1 : The period of time between commencement of business and occurrence of peril
Option 2 : The period of time between the scheduled commencement date and completion date of the project
Option 3 : The period of time between the scheduled completion date and the date of occurance of peril
Option 4 : The period of time between the scheduled completion date and the actual date on which the Business
was commencemend
Q9. Which of the following is True, in relation to Mediclaim proposal form? (1) The insured warrants
the truth of the statements and agrees that the proposal form shall be the basis of the contract. (2)
The insured consents to the insurer taking medical information from hospital/ medical practitioner
who has treated the insured.
Q10. Which of the following terms matches closest with Professional indemnity cover?
Option 1 : Practicing Surgeons
Option 2 : Insurance Companies
Option 3 : Fast Moving Consumer Goods
Option 4 : Hospitals Nursing homes

Q11. Under personal Accident section Overseas Medical policy which of the following is not
covered.
Option 1: Permanent partial disablement
Option 2: Death
Option 3: Permanent total disablement
Option 4: Loss of eye (s
Q12. Which of the following is a classification of Commercial Vehicles?

Option 1 : Package Policy
Option 2 : Fire Risk
Option 3 : Private Covers
Option 4 : Goods Carrying Vehicles
Q13. Which of the following statements is True? (1) Pro-rata average is applied under CAR policy (2)
Pro-rata averages is applied under EAR policy?
Q14. Which of the following statements is True? (1) Contribution applies only to contracts of
indemnity (2) Contribution does not apply to personal accident insurance
Q15. Cyber Liabilities cannot Insure which of the following?

Option 1 : Deliberate Malicious Files from the Insured to the third party
Option 2 : Losses arising from Hacking into the insureds server
Option 3 : Losses occurred because Third Parties could not access the system
Option 4 : Liability for the Insured for spreading a virus to the third party
Q16. A district forum under the consumer protection act can entertain a complaint where the
compensation claimed is less than Rs____
Option 1: 20 lakhs
Option 2: 10 lakhs
Option 3: 30 lakhs
Option 4: 50 lakhs

Q18. To which of the following does the Employees State Insurance Act, 1948 apply.
Option 1 : Employees of Public Sector manufacturing companies
Option 2 : Employees of Central Government
Option 3 : Industrial employees as notified by the Government
Option 4 : Employees of State Government
Q19. 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 ____ months of the date of disclaimer.
Option 1: 36 months
Option 2: 24 months
Option 3: 6 months
Option 4: 12 months
Q20. If there is no insurable interest the insurance contract becomes

Option 1 : Illegal
Option 2 : Illegal Void
Option 3 : Voidable
Option 4 : Unenforceable in a Court of Law
Q21. Reserves for Outstanding Claims fall under the heading

Q22. Employee theft cover is also known as

Option 1 : Fidelity Guarantee Insurance
Option 2 : Robbery Insurance
Option 3 : Embezzlement Insurance
Option 4 : Hold Up Insurance
Q23. Which of the following statements is True? Domiciliary hospitalization benefit does not include
(1) Pre- hospitalization treatment (2) Post -Hospitalization treatment
Q24. Under Inland Transit (Rail/Roa Clause (, the insurance ceases

Option 1 : after 15 days of arrival of wagon at destination railway station
Option 4 : on unloading of each package

Q25. Under private car package policy constructive loss arises if the cost of repairs of the damaged
vehicle exceeds____% of insured declared value.
Option 1: 90%
Option 2: Either of the above
Option 3: 80%
Option 4: 75%
Q26. Which amongt he following is the definition of Salvage?

Option 1 : The Sum Insured under a Fire Policy
Option 2 : List of recoveries in the claims register
Option 3 : Claim Money for a Fire Policy under Mortgage
Option 4 : The Property that is partially damaged
Q27. Which of the following is paid out of pure premium

Option 1 : Unexpected heavy losses
Option 2 : Agency commission
Option 3 : Losses
Option 4 : Expenses of management
Q28. Mediclaim insurance is available to persons between the ages of________.

Option 1 : 2 years and 75 years
Q29. Which of the following covers is dissimilar to the other four options?
Option 1 : Loss of Profits
Option 2 : Loss of checked in baggage
Option 3 : Loss of Passport
Option 4 : Delay in receiving checked in baggage
Q30. Which of the following RBI Governors examined the insurance market and made
recommendations for reforms?
Option 1: C.Rangarajan
Option 2: R.N.Malhotra
Option 3: Bimal Jain
Option 4: Dr.Manmohan Singh
Q31. Which of the following statements is True? (1) For export / import cargo policies, institute
cargo clauses (IC are used. (2) For inland transit consignments, local clauses are used.
Option 3: Is true
Q33. In case of Taxies which of the following is False?

Option 1 : Taxies whose age is above 7 years shall be issued comprehensive cover subject to inspection and
Option 2 : additional excess
Option 3 : Taxies upto 5 years old will be issued comprehensive cover subject to inspection
Option 4 : Taxies upto 3 years old will be issued comprehensive cover
Q34. Which of the following is not impact damage covered under standard fire and special perils .
Visible physical damage by direct contact with
Option 1: Any animals
Option 2: Insureds own forklift on the premises
Option 3: Any rail vehicle
Option 4: Any road vehicle
Q35. Which of the following is correct in relation to fire reinstatement value policy? (1)
Depreciation Applied (2) Pro-rata Average applies
Q36. Which of the following documents is not required under road transit claims?
Option 1 : Consignment note
Option 2 : Original policy
Option 3 : Special power of attorney (stampe
Option 4 : Letter of subrogation ( stampe
Option 4: Fixed Plate glass
Q38. Which of the following is not covered under fire floating policy?
Option 1 : Stocks in godown
Option 2 : Stocks in transit
Option 3 : Stocks in the open
Option 4 : Stocks in process blocks

Q40. Which of the following are standing charges?

Option 1 : Interest on loans from banks
Option 2 : Insurance premiums
Option 3 : Rent
Q41. Under IRDA guidelines which of the following polices fall under individual and Experience
rated products
Option 1: Motor fleets
Option 3: Group personal accident
Option 4: Group health
Q42. Members of the Insurance Advisory Committee are drawn to represent the interests of
different groups like:
Option 1: Employees
Option 2: Surveyors, agents, advocates
Option 3: Research bodies, organisations engaged in safety and loss prevention
Option 4: Consumer forum, industry, intermediaries
Q43. Which one of the following is not one of the prime hazards an Underwriter looks at?
Option 1 : Physical
Option 2 : Risk
Option 3 : Financial
Option 4 : Moral
Q44. Under IRDA guidelines which of the following policies fall under Exposure rated products.
Option 1 : Policies with a sum insured of the Rs.2500 crores or more at one location for material damage
Option 2 : Earthquake risk
Option 3 : Liability insurance (Rs100 crores or more per event)
Option 4 : Policies with a sum insured of Rs 2500 crores or more at one location for combined material damage and
business interruption
Q45. As per the insurance act, 1938 (as amende as insurer has to obtain a report from a licensed
surveyor if the loss equals or exceeds.
Option 1 : Rs 25,000
Q46. Normal rates of premium apply for cargo carried in vessels approved by following classification
societies.
Option 1: Indian register of shipping
Option 2: Lloyds register of shipping
Option 3: American bureau of shipping
Q47. Under which of the following policies the sum insured is required to be current replacement
value.
Option 2: Machinery Breakdown
Option 3: Electronic Equipment
Option 4: Boiler
Q48. Which of the following statement is True? (1) State commission can entertain appeals against
the order of the district forum. (2) National commission can entertain appeals against the order of
the state commission.
Q49. Under industrial risks public liability policy which of the following ratios of any accident and
one year limits of indemnity are not allowed.
Option 1: 1:05
Option 2: 1:03
Option 3: 1:02
Option 4: 1:04
Q51. Which of the following is eligible for group personal accident insurance be granted?
Option 1 : members of a registered cooperative society
Option 2 : employees of a company
Option 3 : holders of deposit certificates issued by banks
Option 4 : All the above

Q1. Which of the following is eligible for group personal accident insurance be granted?
Option 1 : members of a registered cooperative society
Option 2 : employees of a company
Option 3 : holders of deposit certificates issued by banks
Option 4 : All the above
Q2. Which of the following covers in Householders package insurance is NOT include in shopkeepers
package insurance?
Option 3: Fixed plate glass
Q3. When looking for Reinsurance the Underwriter works at Two levels. One is Risk Level and the
other is
Option 1: Micro
Option 2: Portfolio
Option 3: Retention
Option 4: Primary
Q4. As per IRDA regulation a surveyor has to be appointed within ____hours/days of reciept of
claim intimation from the insured.
Option 1: 72 hours
Option 2: 24 hours
Option 3: 15 days
Option 4: 7 days
Q5. Which of the following is True under standard fire and special perils policy? (1) Pollution which
itself results from pollution is covered. (2) Insured peril itself results from pollution is covered
Q6. The fire insurance policy in India does not provide for compensation for losses arising out of
Option 1 : aircraft damage
Option 2 : Theft
Option 3 : implosion or explosion
Option 4 : lightning
Q7. Under motor vehicles act, liability under workmens compensation act towards which of the
following of the following is compulsorily insurable.
Option 1 : Ticket examiner (public service vehicle)
Option 3 : Conductor (public service vehicle)
Option 4 : Paid driver of vehicle
Q8. Which of the following is True under standard fire and special perils policy? (1) Pollution which
itself results from pollution is covered. (2) Insured peril itself results from pollution is covered
Q9. Which of the following is covered by extra premium under cattle policy?
Option 1 : Permanent total disability
Option 2 : Riot and Strike
Option 3 : Surgical operations
Option 4 : Famine
Q10. Fire reinstatement value policy is not issued in respect of _______

Option 1 : Stocks
Option 2 : Plant
Option 3 : Building
Option 4 : Machinery
Q11. Which of the following criteria has to be satisfied by a hospital or nursing home to be eligible
to provide treatment under Mediclaim policy?
Option 1: Registration with local authorities
Option 3: Operation theatre
Option 4: Doctors and nursing staff round the clock
Q12. Which of the following is not relevant in fixing rates of premium under industrial risks public
liability policy?
Option 1: Type of Construction of risk
Option 2: Risk group
Option 3: Turnover
Option 4: Radio of Limits of indemnity ? AOA to AOY

Q14. Which of the following terms matches closest with Composite Policy?
Option 1 : Electronic Equipment insurance
Option 2 : Shopkeepers
Option 3 : Critical Care Health insurance
Option 4 : Janatha Personal Accident insurance
Q15. Who devises the Institute Time Clauses?

Option 1 : IRDA
Option 2 : Institute of London Underwriters
Option 3 : General Insurance Corporation
Option 4 : Insurers
Q16. Which of the following statements is True? (1) Code of conduct regulation applies to micro
insurance agents. (2) Advertisement regulation apply to micro-insurance agents
Q17. Mr. Ajay owns a restaurant, which he had bought three years ago for Rs. 2 lakhs.He had
bought fire insurance worth Rs. 1.6 lakhs (which is the written down value of his insured
property). His restaurant caught fire and the amount of loss suffered was worth Rs. 90000. The
claim amount admissible is
Option 1: Rs 90,000
Option 2: Rs 1.6 Lakhs
Option 3: Rs 2 Lakhs
Option 4: Rs 72,000
Q18. As per Mediclaim policy, Statement A. Expenses on Hospitalisation for a minimum period of 24
hours are admissible. Statement B : This time limit is not applied if the insured is discharged the
same day after specific treatment e.g. Dialysis.
Option 2: 1 is true
Option 4: 2 is true
Q19. An underwriter is most likely to estimate its risk exposure to an earthquake in a particular
region by using
Option 1: a loss modelling system
Option 2: research from the internet
Option 3: a surveyor
Option 4: data provided by Lloyds
Q20. Under IRDA guidelines which of the following polices are packaged or customized products.
Option 1 : Homeowners comprehensive
Option 2 : Bankers blanket
Option 4 : Shopkeepers comprehensive
Q21. Which of the following is true, in relation to Mediclaim proposal form ? Statement A. The
insured warrants the truth of the statements and agrees that the proposal form shall be the basis
of the contract. Statement B. The insured consents to the insurer taking medical information from
hospital /medical practitioner who has treated the insured.
Option 2: Statement B is True
Option 3: Both are False
Option 4: Statement A is True
Q22. For which of the following features, no discount is granted for premium rates for Poultry
insurance.
Option 1: Farms having resident veterinary doctor
Option 2: Farms in rural areas
Option 3: Farms having dead bird disposal system
Option 4: Farms having standard layout
Q23. For which of the following professional indemnities, per capita premium in addition to basic
rate is not provided?
Option 1: Doctors
Option 2: Chartered Accountants
Option 3: Medical establishments
Option 4: Solicitors
Q24. Select the expanded form of ALOP used in insurance

Option 1 : Agreed Loss of Profits insurance
Option 2 : Advance Loss of Profits insurance
Option 3 : Additional Loss of Profits insurance
Option 4 : Associated Loss of Profits insurance
Q25. Which of the following does not appear in the indemnity clause of Workmens Compensation
insurance?
Option 1: Fatal Accidents Act
Option 2: Common Law
Option 3: Employees State Insurance Act.
Option 4: Workmens Compensation Act
Q26. By the common law who bears the responsibility of Loss Minimisation?
Option 1 : Insured
Option 2 : The Insurance Agent
Option 3 : The Legal Court
Option 4 : Insurer

Q27. The acceptance of substandard exposure in return for other more profitable business is
generally described as
Option 1: underwriting guide
Option 2: accommodation
Option 3: underwriting audit
Option 4: policy statement
Q28. Which of the following appear as exclusions under personal accident insurance?
Option 1 : Service in the armed forces
Option 2 : Accident indirectly caused by insanity
Option 3 : Child birth or pregnancy
Q29. Which of the following statement is True? (1) Insurers charge for motor third party policies
rates of premium fixed by IRDA. (2) Insurers can charge higher rates based on their own past loss
experience.
Q30. Which of the following makes the contract unenforceable in a Court of Law?
Option 1 : The policy is not stamped as per Indian Stamp Act.
Option 2 : The proposer has given wrong address of property due to a clerical error
Option 4 : The proposer has committed non-disclosure
Q31. Under Marine-cum-Erection policy the cover commences when the equipment
Option 1 : Leaves the manufacturers warehouse
Option 2 : Is discharged at the port of entry
Option 3 : Is unloaded at the site of erection
Option 4 : Is loaded on the vessel
Q32. Which of the following on NOT covered under Bankers Blanket policies?
Option 1 : Fraud of insureds employees in respect of goods hypothecated to the insured
Option 2 : Loss of security by burglary
Option 3 : Loss due to faculty computer programming
Option 4 : Payment of forged cheques
Q33. Which of the following risks is excluded under cattle policy?

Option 2 : Theft
Option 3 : Flood
Option 4 : Riot and Strike

Q34. Which of the following terms matches closest with Professional indemnity cover?
Option 1 : Insurance Companies
Option 2 : Fast Moving Consumer Goods
Option 3 : Practicing Surgeons
Option 4 : Hospitals Nursing homes
Q35. The amount of relief payable under public liability Insurance Act, 1991 for Accident is
Option 1 : Rs. 25,000/-
Option 2 : Rs. 10,000
Option 3 : Rs.50,000
Option 4 : Rs. 12,500
Q36. Which of the following is a type of Insurers Income?

Option 1 : Outstandng Dividends
Option 2 : Refunds
Option 3 : Returns on Investment
Option 4 : Outstanding Claims
Q37. Which of the following statements is True? (1) Compensation to victims of hit and run motor
accident is payable out of solatium fund. (2) Compensation for victims of motor accident claims
tribunal.
Q38. In which of the following professional indemnities there is no provision for voluntary excess.
Option 1 : Chartered Accountants
Option 2 : Doctors
Option 3 : Architects
Option 4 : Medical establishments
Q39. Under critical illness policy which of the following is not specified as critical illness.
Option 1 : Paralysis
Option 2 : Parkinsons Disease
Option 3 : Cancer
Option 4 : Tuberculosis
Q40. According to the Marine Insurance Act 1963, a contract of marine insurance is valid
Option 1 : Only if it fulfils the essentials of a valid contract
Option 2 : Only when it is verbal
Option 3 : Only when it is in writing
Option 4 : It can be an oral agreement or a written contract

Q41. Terrorism cover for industrial risks is subject to a deductible of
Option 1 : 0.5% of total sum insured
Q42. Which of the following property is covered under the fire policy if expressly stated in the
policy?
Option 1: books of account
Option 2: business books
Option 3: all the above
Option 4: computer system records
Q43. To arrive at final rate by loading the pure rate of premium top provide for
Option 1 : Commission to intermediaries
Option 2 : Margin of profits
Option 4 : Expenses of management
Q44. Which of the following terms matches closest with Composite Policy?
Option 1 : Shopkeepers
Option 2 : Critical Care Health insurance
Option 3 : Electronic Equipment insurance
Option 4 : Janatha Personal Accident insurance
Q45. Which of the following is not required under rail transit claims?
Option 1 : Non -delivery Certificate
Option 2 : Invoice
Option 3 : Bill of lading
Q46. Which of the following types of specific treatment are exempted from minimum 24 hours stay
in a hospital?
Option 2: Lithotripsy
Option 3: Radiotherapy
Option 4: Chemotherapy
Q47. Under which of the following circumstances reinstatements basis of settlement will not apply
under fire reinstatement value policy
Option 1 : Insurer is unable to replace the damaged property
Option 2 : Insured fails to intimate to the insurer within 6 months or any extended time to replace the damaged
property
Option 3 : Insured in unwilling to replace the damaged the property
Q48. Which of the following statement is True? (1) Bonus / Malus clause applies to individual
Mediclaim Policy .2 Bonus / Malus clause applies to group Mediclaim policy.
Q49. The turnover of a business consists of

Option 1 : Variable charges, standing charges and net profit
Option 2 : Variable charges and net profit
Option 3 : Variable charges and standing charges
Option 4 : Standing charges and net profit
Q50. Which of the following risks falls under group IV for rating purposes under industrial risks
public liability policy?
Option 1: Biscuit factories
Option 2: Match factories
Option 3: Breweries
Option 4: Distilleries
Q51. Consent of insurers is not required for the assignment of

Option 1 : Marine hull policies
Option 2 : Marine cargo policies
Option 3 : Fire policies
Option 4 : Burglary policies
Q1. Consent of insurers is not required for the assignment of

Option 1 : Marine hull policies
Option 2 : Marine cargo policies
Option 3 : Fire policies
Option 4 : Burglary policies
Q2. Which of the following statements is True.(1) The insured Declared value of the vehicle is fixed
on the basis of manufacturers listed selling price of the brand and model of the vehicle at the
commencement of insurance. (2) The Insured Declared value is the sum insured under the polic
Q3. An Excess is another word for

Option 1 : Franchise
Option 2 : Warranty
Option 3 : Deductible
Option 4 : Exclusion
Q4. Which of the following are allowed, under the regulation, to distribute micro-insurance
products?
Option 1: Corporate agents
Option 3: Brokers
Option 4: Individual agents
Q5. As per structured formula under the Motor Vehicle Act victims of fatal injuries are paid
compensation on the basis of:
Option 1: Age, Income and number of dependents
Option 2: Income and size of family
Option 3: Age and sex
Option 4: Age and income
Q6. Which of the following are general exclusions (all sections) of Overseas Medical Policy?
Option 2 : Professional Sports events
Option 3 : Naval ,Military Or operations
Option 4 : Hazardous sports
Q7. Implosion in fire insurance means

Option 1 : Damage caused by corrosion
Option 2 : Damage caused by tempest
Option 3 : Sudden burst with loud report
Option 4 : Inward burst
Q8. The principle of indemnity arises under the

Option 1 : Indian Contract Act
Option 2 : Insurance Act 1938 (as amende
Option 3 : IRDA Act
Option 4 : Common Law
Q9. In which of the following clauses of the Scheduled form of policy reference is made to the sum
insured or limit of liability.
Option 1: Operative clause
Option 2: Signature clause
Option 3: Warranties clause
Option 4: Recital clause
Q10. Which of the following is taken into account in fixing the estimated completely erected value
of the contract works under CAR Policy?
Option 1: Freight and customs duties
Option 2: Construction costs
Option 3: Cost of material
Q11. Which of the following statements is True ? (1) No claim can be under an illegal policy (2)
Claim can be paid, at the option of the insurer under a void policy
Option 2: Both 1 and 2 are true
Q12. In respect of motor third party insurance (1) No commission is payable (2) No brokerage is
payable
Q13. How much is the amount of claim payable , if sum insured is Rs. 2 Lakhs, the excess limit is Rs.
20,000/- and the loss is Rs. 25,000 /-
Option 1: Rs. 25,000
Option 2: Rs.15,000
Option 3: Rs.5000
Option 4: Rs. 20,00
Q14. Which of the following does not fall under miscellaneous classification of motor vehicles?
Option 1 : Motorized rickshaws
Option 2 : Cinema, film recording vans
Option 3 : Mobile dispensaries
Option 4 : Ambulance
Q15. Which of the following risks does NOT require additional premium under money in transit
policy?
Option 1: Terrorism
Option 2: Riot
Option 3: Strike
Option 4: Robbery
Q16. Which of the following statements is True ? 1 ICC ( &( provide specified risk cover (2) ICC
( provide all risks cover
Option 3: Both statements are false
Option 4: Both statements are true

Q17. In Motor Insurance FORM A covers________
Option 1 : Third Party Losses
Option 2 : Own Damage Losses
Option 3 : Act Liability
Option 4 : Act Liability and Own Damage Losses
Q18. Subrogation condition does not appear in

Option 1 : Marine cargo policy
Option 2 : Fire policy
Option 3 : Baggage policy
Option 4 : Burglary policy
Q19. Which of the following is not covered under Institute cargo clauses ?
Option 1 : Stranding of vessel
Option 2 : Washing overboard
Option 3 : Jettison
Option 4 : Collision of vessel
Q20. A building valued at Rs 250,000 is jointly owned by Magesh and Joseph, who each individually
arrange insurance on it. Magesh insures the building for Rs 100,000, whilst Joseph insures it for Rs
150,000. How much of the valid claim is each insurer liable to pay if a loss of Rs 55,000 occurs?
Option 1: Magesh insurer is liable for Rs 22,000 and Josephs for Rs 33,000
Q21. Which of the following is True: Differences as to the quantum thereof are to be referred to (1)
Arbitration as per policy conditions 2 committee set up by CPAA and the insurance company
Q22. In which of the following insurance the principle of indemnity is modified.

Option 1 : Fidelity Guarantee
Option 2 : Baggage insurance
Option 3 : Marine Cargo
Option 4 : Public Liability
Q23. If there is a non-disclosure of a material fact due to oversight, the insurance contract becomes
Option 1 : Voidable
Option 2 : Invalid
Option 3 : Void
Option 4 : Illegal
Q24. Which of the following perils cannot be added by extra premium to institute cargo clauses (?
Option 1 : Fresh water damage
Option 2 : Country damage
Option 3 : Inherent vice
Q25. Which of the following property can be insured under Machinery Breakdown policy?
Option 1 : Electrical equipment
Option 3 : Mechanical equipment
Option 4 : Lifting equipment
Q26. Which of the following statement is True? (1) Bonus / Malus clause applies to individual
Mediclaim Policy .2 Bonus / Malus clause applies to group Mediclaim policy.
Q27. The information necessary to complete a burning cost rating calculation is

Option 2 : Claims experience split between claims paid and claims outstanding
Option 3 : Turnover or wages
Option 4 : Previous Insurers for each of the past five years
Q28. Under group P.A. policy, which of the following is True? (1)Cumlative bonus does not apply
(2)Childrens education grant is available

Q30. Which of the following documents is not required under road transit claims?
Option 1 : Special power of attorney (stampe
Option 3 : Consignment note
Option 4 : Letter of subrogation ( stampe
Q31. When there are several policies on the same subject-Matter, each insurer pays only a
proportion of the loss. This is know as
Option 1: Subrogation
Option 2: Pro-rata Average
Option 3: Contribution
Option 4: Franchise
Q32. Members of the Insurance Advisory Committee are drawn to represent the interests of
different groups like:
Option 1: Employees
Option 2: Surveyors, agents, advocates
Option 3: Research bodies, organisations engaged in safety and loss prevention
Option 4: Consumer forum, industry, intermediaries
Q33. Which of the following is True in relation to industrial Risks public liability policy? (1) 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. (2) 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.
Option 1: Only 1 is true
Option 4: Only 2 is true
Q34. Which of the following is correct in relation to fire reinstatement value policy? (1)
Depreciation Applied (2) Pro-rata Average applies
Q35. The amount of relief payable under public liability Insurance Act, 1991 for Accident is
Option 1 : Rs.50,000
Option 2 : Rs. 12,500
Option 3 : Rs. 10,000
Option 4 : Rs. 25,000/
Q36. A stevedoring company owns an ocean steamer valued at Rs. 32 crores. The steamer has been
insured with three different insurance companies A, B and C.The amount underwritten by A is Rs.
6 crores, by B is Rs 10 crores and by C is Rs. 16 crores.The steamer meets with an accident and the
loss is valued at Rs. 4 crores. The liability of Company B
Option 1: Rs 1.25 Crore
Option 2: Rs 2 Crore
Option 3: Rs 5 Crore
Option 4: Rs 75 Lakhs
Q37. 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 Rs. 15,000 /- ?
Option 1: Rs. 15,000/-
Option 2: Rs.5,000 /-
Option 3: Rs. 25,000/-
Option 4: Nil
Q38. As per the insurance act, 1938 (as amende as insurer has to obtain a report from a licensed
surveyor if the loss equals or exceeds.
Option 1: Rs 50,000
Option 2: Rs 15,000
Option 3: Rs 20,000
Option 4: Rs 25,000
Q39. Which of the following documents are required to process a motor insurance claim?
Option 2 : Police Report
Option 3 : Driving Licence
Option 4 : Registration Certificate Book
Q40. When did General Insurance Corporation of India commence business operation?
Option 1 : 1971
Option 2 : 1970
Option 3 : 1972
Option 4 : 1973
Q41. Under inland transit (Rail/Roa (, the insurance ceases

Option 1 : On unloading of each package
Option 2 : After 3 days of arrival of wagon at destination railway station
Q42. Which of the following is not an exclusion under cattle policy?

Option 1 : Surgical operations
Option 2 : Transport by air
Option 3 : Clandestine sale of the animal
Option 4 : Theft of the animal
Option 1 : Personal baggage
Option 2 : Fixed Plate glass
Option 3 : Legal liability to third parties
Option 4 : Television
Q44. Which of the following statements is True? (1) The Indemnity period is to be selected by the
insured. 2 The period of indemnity may vary from 3 months to 3 years.
Q45. Under Personal Accident Insurance, in case of loss of one limb or one eye the compensation
payable will be?
Option 1: 50% of the Capital Sum Insured
Q46. The maximum liability of the insurer under pubic liability insurance act 1991 to pay relief to
several claimants arising out of one accident shall not exceed____
Option 2: Rs.5.00 crores
Option 4: 10.00 crores

Questions - IC 38

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Questions - IC 38

Uploaded by

Copyright:

Available Formats

Q1.

The legal right to insure means

Correct Answer Option : 4

Correct Answer Option : 4

Q3. Deductible is also termed as

Correct Answer Option : 3

Correct Answer Option : 1

Q5. Which of the following falls under Extraneous Risks?

Correct Answer Option : 3

Q6. The duty of disclosure of material information

Correct Answer Option : 2

Correct Answer Option : 1

Correct Answer Option : 4

Correct Answer Option : 4

Q10. The TAC in India is mainly concerned with the

Correct Answer Option : 1

Q11. Fire Consequential loss policy pays the insured

Correct Answer Option : 1

Correct Answer Option : 1

Correct Answer Option : 1

Correct Answer Option : 2

Correct Answer Option : 2

Correct Answer Option : 3

Q17. The Operative clause is also known by which other name?

Correct Answer Option : 3

Q18. The principle of indemnity arises under the

Correct Answer Option : 3

Q19. The object of the principle of indemnity is to

Correct Answer Option : 1

Correct Answer Option : 3

Correct Answer Option : 1

Correct Answer Option : 4

Correct Answer Option : 3

Correct Answer Option : 4

Correct Answer Option : 3

Correct Answer Option : 3

Correct Answer Option : 3

Q28. Fluctuation Reserves are classified under the heading

Correct Answer Option : 2

Q29. Which of these is an add-on cover under Fire Insurance Policy?

Correct Answer Option : 3

Q30. The duty of disclosure of material information

Correct Answer Option : 4

Correct Answer Option : 2

Q32. Who does the pricing of the products?

Correct Answer Option : 4

Correct Answer Option : 2

Q34. The claims loading applied to a policy is known as

Correct Answer Option : 4

Correct Answer Option : 1

Q36. Pick the False Statement among the following

Correct Answer Option : 1

Correct Answer Option : 3

Q38. General Accounting must be in line with which of the following?

Correct Answer Option : 4

Correct Answer Option : 3

Q40. Which of the below companies is a specialist in health insurance?

Correct Answer Option : 3

Correct Answer Option : 3

Correct Answer Option : 2

Correct Answer Option : 2

Correct Answer Option : 4

Correct Answer Option : 4

Q46. Forceful entry is the chief characteristic of