IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 10
| Q1.What is the ‘Average Clause’ with respect to consequential loss policy? |
| It applies when there is no insurance |
| It applies to every insurance |
| It applies when there is under insurance |
| It applies as per the insurer and the insured’s desire |
| It applies when there is over insurance |
| Q2.Arial or space devices includes the following: 1. Balloons 2. Rockets 3. Artificial satellites |
| Only 3 |
| 1, 2 and 3 |
| 1 and 3 |
| 2 and 3 |
| 1 and 2 |
| Q3.Suggest a condition that is similar in both, a consequential loss policy and a fire policy. |
| There is no such condition that is similar in both policies |
| If the insured opts for his option to reinstate, the sum insured will stand reduced by the amount of loss |
| If the insured opts for his option not to reinstate, the sum insured will stand reduced by the amount of loss |
| If the insured opts for his option not to reinstate, the claim will stand reduced by the amount of loss |
| If the insured opts for his option to reinstate, the claim will stand reduced by the amount of loss |
| Q4.Describe the concepts of ‘value’ and ‘depreciation’. |
| They have highly complex meaning under the insurance law |
| They involve great theoretical difficulties while analyzing |
| They involve both, theoretical as well as practical difficulties while analyzing |
| They are theoretically simple but their application to practical situation involve problems |
| They involve great practical difficulties while analyzing |
| Q5.What is frequently difficult to say at once in a business? |
| What amount of claim would be |
| What amount of loss would be |
| What the surveyor’s opinion it would be |
| What the gross profit of the business is likely to be |
| What length of interruption is likely to be |
| Q6.An insurer, XYZ Ltd. states that it should be in a position to determine the cause of loss and assess the extent of loss under absolute right. Judge whether this is correct. |
| Correct, XYZ Ltd. has such right |
| Not correct, such a determination of the cause is not at all important |
| Not correct, it totally depends on the IRDAI notifications |
| Not correct, there is no such right to the insurer |
| Not correct, it totally depends on the insurance agreement |
| Q7.One of the duties of surveyors with respect to their knowledge of the markets is_ |
| To identify the best auctioneer |
| To help the insured to save market-related taxes |
| To help the insurer to save market-related taxes |
| To locate the loopholes where the insured can cheat |
| To identify customers for salvage |
| Q8.The information with regards to ‘Previous losses suffered by the insured, whether covered by insurance or not’ is included under: |
| Average |
| Description of risk |
| Insurable interest |
| Description of damage |
| Cause of loss |
| Q9.ABC Ltd. (an insurer), has proposed property for insurance but could not pay the premiums in advance. Select the correct option with regards to the above situation. |
| The property proposed for insurance will not be covered until the premium is paid in advance. |
| The property proposed for insurance will not be covered until the premium is paid upto the extent of 50%. |
| The property proposed for insurance will not be covered until the premium is paid upto the extent of 25% |
| The property proposed for insurance will not be covered until the premium is committed by signing a bond |
| The property proposed for insurance will not be covered until the premium is paid upto the extent of 75% |
| Q10.Suggest a valid option, if parties to the insurance want to opt for Litigation instead of referring to the Arbitration process. |
| The parties can go ahead since the Arbitration will be less expensive |
| IRDAI guidelines do not allow both the options |
| The parties should not opt for the same as it will be more expensive |
| Both options are not permitted under the Insurance Act 1938 |
| Insurance disputes can be handled only by high courts having jurisdiction |