IC67 MARINE INSURANCE EXAM - 16
| Q1.____ is not a contributing interest in the general average loss. |
| Ship |
| Freight |
| Crew Members |
| Cargo |
| Vessel |
| Q2.Identify the precaution an insurer should take during the tail end of a transit? (Transit from destination port to buyers warehouse) |
| The insurer should check that the goods are properly stored in the sellers' warehouse. Also the goods are loaded onto proper vehicles when they are transferred for shipping |
| The insurer should inspect the goods when it reaches the destination port so that any damage revealed can be excluded from the scope of the policy |
| The insurer should verify if the ship carrying the goods is seaworthy |
| The insurer should check the containers in which the goods are stored in the ship so that they are exposed to as little risk as possible |
| The insurer should ensure that the goods are properly stored and packed in the seller's warehouse |
| Q3.AAA Insurance contracted with BBB Insurance an Excess of Loss Treaty reinsurance agreement and the retention limit was set to Rs. 70 crores. Calculate the liability of AAA Insurance and BBB Insurance if the policy losses were Rs. 100 crores in that year. |
| AAA Insurance will bear the loss of Rs 70 crores and BBB Insurance will bear the loss of Rs 30 crores |
| AAA Insurance will bear the loss of Rs 30 crores and BBB Insurance will bear the loss of Rs 70 crores |
| BBB Insurance will bear the total loss of Rs 100 crores |
| AAA Insurance will bear the total loss of Rs 100 crores |
| Both will bear the loss equally i.e. Rs 50 crores each |
| Q4.Identify the statement which is NOT correct with respect to Sue and Labour charges and Particular Charges? |
| Sue and labor charges are incurred shortly of destination whereas particular charges may be incurred at the destination |
| Sue and labor charges follow upon loss or damage, whereas Particular charges may be incurred when the loss is threatened or imminent but is avoided by expenses for that purpose |
| Particular charges are a type of General Average loss |
| Both Sue and labor charges and Particular charges are incurred for the benefit of the common interest and not for a particular subject matter |
| Payment of a Particular charge would be conditional on the percentage of loss whereas Sue and labor charges would be payable irrespective of the insured value |
| Q5.All Fishing vessels/Trawlers shall contain the warranty - Warranted vessel shall not be employed during ___ notified by the concerned Port Authorities and/or Directorate of Fisheries. |
| Favorable weather conditions |
| Adverse weather conditions |
| Recovery of the loan payment to banks |
| Pre-insurance survey |
| Repair or maintenance period |
| Q6.When are Sue and Labour charges incurred? |
| At the destination |
| Short of destination |
| At the destination and on the vessel |
| After the incidence of Total Loss |
| On a dry-docked vessel |
| Q7.Identify the TRUE statement with respect to the International Underwriting Association of London (IUA). |
| IUA is the main body to fight against all types of maritime crimes and malpractices |
| IUA appoints and controls the Lloyd’s Agents |
| The aim of IUA is to safeguard and develop insurers interests in marine and transport insurance |
| IUA is a division of the International Chamber of Commerce (ICC) |
| IUA works for promoting the implementation of process reforms and electronic interfaces across the markets |
| Q8.Identify the correct statement with respect to the 'Aggregate excess of loss treaty |
| It is a type of proportional treaty |
| It is entered on an individual basis |
| In the Aggregate excess of loss treaty, the loss ratio limit is stated in terms of the actual figure instead of percentage |
| In the Aggregate excess of loss treaty, the loss ratio limit is stated in percentage figures instead of actual figures |
| In aggregate excess of loss treaty, the reinsurer has the option to accept or decline any risk |
| Q9.For the purpose of shipping, the contents of a container are described as ____ or ____. |
| 20 feet container load or 40 feet container load |
| Full container load or Half container load |
| Full container load or Less than container load |
| Total container load or Half container load |
| Total container load or Less – than Total container load |
| Q10.All fishing/Trawlers vessels shall contain the warranty that the vessel shall be __ adequately at all times except when in the harbor or in safe waters. |
| Repaired |
| Slowed down |
| Marooned |
| Manned |
| Secured |