IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 15

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Q1.Mr. Umesh has taken an add-on cover for damage caused due to the earthquake. His net claim amount is Rs. 2,00,000. Calculate the minimum deduction the insurance company will do.
   Rs. 2000
   Rs. 5000
   Rs. 10000
   Rs. 1000
   Rs. 8000
 
Q2.In which part of the Final Survey Report is the information regarding ‘Type of property; Construction number of story’s, physical condition, maintenance, etc.; Occupancy, etc’ is found?
   Description of Damage
   Description of the Risk
   Bank Details
   Insurable Interest
   Circumstances and Cause of Loss
 
Q3.The Standard Turnover of a company is Rs 20,00,000 and the turnover during the previous financial year is Rs. 25,00,000. Find out how this situation is possible?
   The situation is possible only if the company has closed its business in the previous financial year
   This is not possible as the standard turnover cannot be more than the turnover during the previous financial year
   The situation is possible only if there is no fire
  This is not possible as the concepts of both the turnovers basically mean the same
   This situation is easily possible
 
Q4.What is the ‘difference’ basis of specification in LOP policies?
   The 'difference' basis is one of the ways to calculate the gross profit
   'Difference' basis is one of the methods of accepting claim liability
   The 'difference' basis is a method of finalizing sum insured
   The 'difference' basis is a method of finding insurance premium
   The 'difference' basis is a combination of annual turnover and standard turnover
 
Q5.An insurer wishes to find out a measure of loss that can be used as an index of business activity. It feels that 'fixed return on assets' is the correct measure. Guide them -
   Yes, this is the correct measure
   Yes, this is correct if fixed assets are taken at Written Down Value (WDV)
   This is not correct. The correct measure should have been Turnover
   This is not correct. The correct measure should have been Gross profit
   This is not correct. The correct measure should have been Net profit
 
Q6.The value of a building is Rs 6,00,000 and this building has been insured for Rs 3,00,000. There was a loss of Rs 1,00,000. As the sum assured is Rs 3,00,000, the amount of the claim of Rs 1,00,000 should be paid in full. Give your judgment.
   A claim of Rs. 150000 should be paid
   A claim of Rs 50,000 should be paid
   The calculation is correct. Rs 1,00,000 should be paid
  The calculation is correct only if the value of the building is Rs 800000
   The calculation is correct because the claim can be paid in full but not more than the loss
 
Q7.Mega Ltd., wants to protect loss affecting individual risks and suggests a general add-on. Guide -
   Yes, a general add-on will be fine
   No, a ‘Per Risk’ Cover is necessary
   No, a ‘Per Situation’ Cover is necessary
   No, a ‘Per Event’ Cover is necessary
   No, a ‘Per-Se’ Cover is necessary
 
Q8.The term __ refers to the superior qualities of the replaced machinery such as increased output, reduced consumption of power, lower costs of maintenance, etc. due to technological progress and new research.
   Replacement
   Contract Value
   Market Value
   Betterment
   Depreciation
 
Q9.__ is one of the components of the policy, and by means of this clause, any adjustment may be made to the pre-fire figures taken to calculate the loss.
   Operative Clause
   Departmental Clause
   Material Damage Proviso
   Standard Turnover
   Adjustment Clause
 
Q10.What is indicated in the conclusion part of the Risk Inspection Report?
   Probable maximum loss
   Probable minimum loss
   Signatures of the insured and insurers
   Acceptance of the proposal
   Most likely hazards and how to minimize them

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