IC67 MARINE INSURANCE EXAM - 06
| Q1.___ is immunity granted to a common carrier to escape liability under the Carrier’s Act -1865. |
| Act of God |
| Explosion |
| Act of Omission |
| Natural Deterioration or wastage |
| Latent defects |
| Q2.A voyage has not been abandoned and the cargo remains in the vessel after the termination of adventure at an intermediate port short of destination following accident or mishap. In such a case, which of the following will hold true? |
| In this case, duplicate insurance can be issued which would take on from this point |
| In this case, the insurance would cease within 60 days from the time the cargo is discharged at such port of refuge |
| In this case, the cover would continue up to 30 days from the time the vessel takes refuge |
| In this case, the insurance will continue irrespective of any termination of the voyage |
| In this case, the insurance would cease from the time the cargo is discharged at such port of refuge |
| Q3.A sea-going vessel RATNA has a GRT of 7000 and an insured value of Rs. 50 crores. The total loss rate of the vessel is 0.50% and the Ex T.L rate is Rs. 40 per GRT with a deductible of Rs.2,00,000. Calculate the premium payable for this vessel. |
| Rs. 25,80,000 |
| Rs. 19,50,000 |
| Rs. 27,80,000 |
| Rs. 31,66,000 |
| Rs. 33,45,000 |
| Q4.What is the advantage of Specific Voyage Policy? |
| In this policy, the insured has the freedom to select the shipment which is to be insured. He doesn’t have to insure shipments of less value, thus reducing the cost of premium |
| In this policy, if the consignment is to be dispatched during holidays then it will be difficult to arrange for the insurance |
| In this policy, if any insurance is wrongly taken or not taken by mistake, there is no scope for correction |
| In India, where there are many holidays and if the consignment is to be dispatched during holidays it will be difficult to arrange for the insurance |
| In Specific Voyage Policy, the operational control and administrative cost are high as a new policy is to be taken for every dispatch |
| Q5.Which of the following detail can be obtained by an underwriter in the publication from Lloyd’s of London Press? |
| Current Valuation of vessel |
| Record of ownership |
| Known losses |
| Age of the vessel |
| Registration certificate number |
| Q6.Identify the true statement with respect to the 'Picking Clause'. |
| Where the name of the cargo-carrying vessel is not known, like in cover notes and open cover/policies, the Picking Clause is applied |
| The Picking Clause is to prevent inferior quality or damaged goods to be sold as salvage in the market to the detriment of the insured's reputation |
| For goods like grains, coffee beans, and tobacco, the Picking Clause is used |
| As per the Picking Clause, the insurer will pay the cost of picking and re-bailing both sound and damaged material, because the damaged material does have some salvage value |
| The Picking Clause means that the insurer will pay the cost of garbling to prevent further damage and it also reduces the claim |
| Q7.Some goods which were imported are lying unclaimed from 20th April 2019. As per the Major Port Trusts Act, when can the port authorities auction these goods so that they can recover their charges like port dues etc.? |
| They can auction after 21st April 2019 |
| They can auction after 25th April 2019 |
| They can auction after 30th April 2019 |
| They can auction after 5th May 2019 |
| They cannot auction the goods |
| Q8.As per the Institute Time Clauses – Hulls 1.10.83, the sum insured under Disbursements Insurance cannot exceed __ of the sum insured under Hull & Machinery (H&M) policy. |
| 0.05 |
| 0.1 |
| 0.15 |
| 0.2 |
| 0.25 |
| Q9.With reference to insurance of inland vessels, the inland waters are all sheltered and protected waters such as harbor waters, backwaters, seawater within a radius of __ from the entrance to harbor/port, river waters, and the like. |
| 3 NM |
| 5 NM |
| 10 NM |
| 12 NM |
| 15 NM |
| Q10.Mr. Subhash is a regular exporter and has taken an Open Cover to cover his shipments for a period of one year. He somehow forgot to declare one of his shipments out of this. What will be the effect for him? |
| In such an event, usually, no correction can be done |
| He can take a fresh policy and can club the goods in transit for which the policy has not been taken with other goods in transit |
| He can take a new policy and cancel the old policy |
| The shipment will be held covered and will not void the open cover |
| An application has to be made to the insurance company to make changes in the policy |