IC67 MARINE INSURANCE EXAM - 15
| Q1.Identify the reason as to why it is necessary to re-bale even the damaged material as per the 'Picking Clause'? |
| Because it will enable the insurer to value the cargo and pay the right amount of claim in the event of loss |
| Because the insurance claim in the event of a loss can be recovered from a third party |
| Because by doing so the good material can be separated out |
| Because even the damaged material will have to have to be returned as a part of the insurance claim |
| Because the damaged material does have a salvage value and the insurer is liable for the insured value of the pickings less the salvage proceeds of the picked material |
| Q2.In the 'Documents against payment' method of payment, which bank releases the documents to the buyer, to collect the shipment, once the buyer has paid the amount of the Bill of Exchange? |
| Reserve Bank of India |
| Advising Bank |
| Transferring Bank |
| Remitting Bank |
| Collecting Bank |
| Q3.Vijay wants to know the advantages of an Open Cover. Guide him as to which of the following is the correct option. |
| 1. Open cover is automatic and continuous 2. Savings in administrative costs for both insurers and their clients 3. The premium rates are agreed at inception and this assists the insured to identify his costs of insurance right at the outset |
| 1. There are many holidays in India and if consignments are to be sent during holidays, it will be difficult to arrange for the insurance. 2. If any insurance is wrongly taken or not taken by mistake, corrections cannot be done |
| 1. There is no compulsion on the insured to insure all the consignments with one insurance company during a period as he can change the insurance company for each shipment. 2. If any insurance is wrongly taken or not taken by mistake, corrections cannot be done |
| 1. There is no compulsion on the insured to insure all the consignments. If he wishes he may not insure at all. 2. If there are many transits during a period of time, it will become very difficult to control the operational part as it is not easy to arrange for many policies before the commencement of each transit. |
| In an Open Cover, the rates are also not fixed. They will vary with market conditions etc., and so there is no certainty that the cover will be granted and at what price. |
| Q4.In the absence of an inquiry, ____ need not be disclosed to the insured by the insurer. |
| The total value of insurance |
| Insurance Duration |
| Facts of common knowledge |
| Compensation amount |
| Premium amount |
| Q5.Which of these options is correct with respect to insurance for containers in Inland Transport? |
| The containers are insured subject to Institute Container Clauses in inland transport |
| The containers are not protected against damage or loss due to fire in inland transport |
| The containers are treated as cargo and they are insured just like cargo carried in sailing vessels |
| In inland transport, the containers are treated as cargo and they are insured under Inland Transit Clauses |
| In inland transport, the containers are not protected against the risk of the overturning vehicles |
| Q6.Identify the CORRECT statement with respect to Lloyd’s Agents. |
| Lloyd’s Agents are basically underwriting agents |
| Lloyd’s was incorporated and given the power to appoint agents as per the Act of U.K Parliament in 1971 |
| Lloyd’s Agents are also members of the International Maritime Bureau |
| Lloyd’s Agency is responsible for the appointment and control of Lloyd’s Agents |
| Lloyd’s Agents cannot settle any claim on behalf of an underwriter |
| Q7.In case the nature and value of goods have not been declared by the consignor then the maximum limit of monetary liability payable by the MTO for goods in package or units is __. |
| 5 SDR per unit |
| 222.23 SDR per unit |
| 2 SDR per unit |
| 666.67 SDR per unit |
| 10 SDR per unit |
| Q8.Which shipping materials should Mr. Satish use when he is shipping Cocoa Beans? |
| Wooden cases or boxes |
| Sacks |
| Corrugated cartons |
| Bales |
| Containers |
| Q 9. Who establishes the standards, guidelines, and rules for the design, construction, and survey of ships and of other marine structures? |
| Ship Classification Societies |
| Marine Classification Societies |
| Institute of London Underwriters |
| Vessel Classification Societies |
| Flag of convenience |
| Q10.The Indian Register of Shipping (IRS) is a member of __. |
| Tariff Advisory Committee |
| International Association of Classification Societies |
| Organization of Lloyd's |
| International Chamber of Commerce |
| Institute of London Underwriters |