CONTENT
CHAPTER
DESCRIPTION
INTRODUCTION TO INSURANCE
FUNDAMENTALS/PRINCIPELES OF
GENREL INSURANCE
INSURANCE DOCUMENTS
THEORY AND PRACTICE OF RATING
LEGISLATIVE AND REGULATORY MATTERS
FIRE INSURANCE
MARINE INSURANCE
MOTOR INSURANCE
PERSONAL ACCIDENT INSURANCE
HEALTH INSURANCE
LIABILITY INSURANCE
ENGINEERING INSURANCE
MISCELLANEOUS INSURANCES
RURAL INSURANCES
CLAIMS
CHAPTER-1
Q.1
in the insurance context ‘risk’ means?
a)
Possibility of loss or damage
b)
Loss producing event
c)
Property covered by insurance
d)
All the above (true)
Q.2 which of the following statements is true?
a)
Insurance protects the asset
b)
Insurance prevents its loss
c)
Insurance reduces possibilities of loss
d)
Insurance pays when there is loss of asset (true)
Q.3 out of 400 houses, each valued at 20,000, 4houses get burnt every
Year on an average resulting in a loss of Rs.80,000. What should be the
Annual contribution of each house owner to make good this loss?
a) Rs.100/b) Rs.200/-(true)
c) Rs.80/d) Rs.400/-
Q.4 which of the following statements is true?
1. Insurance is a method of sharing the losses oaf ‘few’ by the ‘many’.
2. Insurance is a method of transferring the risk of an individual to a group
Of individuals
Only statement 1
Only statement2
Both statements (true)
Neither of the statements
Q.5 which of the following statements is true?
1.
Insurance prevents the losses from happening
2.
Insurance spreads the losses amongst the insureds
a) Only statement 1
b) Only statement 2(true)
c) Both statements
d) Neither of the statements
Q.6 To which of the following does the Employees state insurance Act, 1948 apply?
a) Employees of central government
b) Employees of state government
c) Employees of public sector manufacturing companies
d) Industrial employees as notified by the government (true)
Q.7 which of the following provide social security?
a) Crop insurance scheme (RKBY)
b) janata personal accident
c) Jan Aragya
d) All the above (true)
Q.8 Which of the following statements is true.
1. Insurance provides direct benefits to individuals
2. Insurance provides indirect benefits to the community
a) Only statement1
b) Only statement2
c) Both statement (true)
d) Neither of the statements
Q.9 which of the following statements is true?
a) Insurance facilitates free investment of capital in business
b) Insurance encourages commercial and industrial development
c) Insurance contributes to national productivity
d) All the three above (true)
CHAPTER-2
Q.1 which of the following are requisites of a valid insurance contract?
1. Consideration
2. Parties of the same mind
3. Parties are competent to contract
a) 1
b) 2
c) 1and2
d) All three - (true)
Q.2 which of the following statements is correct according to law?
1. The parties to a commercial contract have to observe good faith
2. The parties to an insurance contract have to observe utmost good faith
a) 1is correct
b) 2 is correct
c) Both are correct -(true)
d) Both are incorrect
Q.3 which of the following is not the correct reason. Insurer requires material information?
a) To decide about acceptance
b) To fix the rate of premium
c) To fix the sum insured -(true)
d) To fix terms and conditions of cover
Q.4 which of the following are material facts. The fact that previous insurers?
a) Had rejected the proposal
b) Charged extra premium
c) Had refused to renew the policy
d) All three a.b & c - (true)
Q.5Which of the following statements is correct. The duty of disclosure of material fact?
1. ceases when the policy is issued
2. Arises again at the time of renewal of the policy
a) 1 is correct
b) 2 is correct
c) Both are correct -(true)
d) Both are incorrect
Q.6 which of the following makes the contract unenforceable in a court of law?
a) The proposer has committed non-disclosure
b) The proposer has committed miss representation
c) The proposer has given wrong address of property due to a clerical error
d) The policy is not stamped as per Indian stamp act -(true)
Q.7 which of the following statements is correct?
1. A void contract has no legal validity
2. A voidable contract remains a contract until the insurer exercises his option to avoid the
contract
a) 1 is correct
b) 2 is correct
c) Both are incorrect
d) Both are correct -(true)
Q.8 The duty of disclosure of material information?
a) Applies to insured
b) Applies to the agent
c) Applies to the insurer
d) All three - (true)
Q.9 if there is no insurable interest the insurance contract becomes?
a ) Unenforceable in a court of law
b) Illegal
c) Void (true)
d) Voidable
Q.10 insurable interest is not always required at the time of taking the policy?
a) Fire insurance
b) Marine hull insurance
c) Marine cargo insurance (true)
d) Burglary insurance
Q.11 consent of insurers is not required for the assignment of
a) Marine hull policies
b) Marine cargo policies (true)
c) Fire policies
d) Burglary policies
Q.12the object of the principle of indemnity is to?
a) Pay the full cost of repairs
b) Pay the full cost of replacement
c) Pay the cost of reinstatement
d) Prevent the insured from making any profit out of his loss (true
Q.13 Agreed value policies are issued for
a) Marine cargo
b) Marine hull
c) Marine cargo and hull (true)
d) Fire insurance on high valued machinery
Q.14 Sum insured under an insurance policy means
a) It is the agreed value of subject matter insured
b) The amount payable when there is a loss
c) The amount on which the premium is calculated
d) The maximum limit of liability under the policy (true)
Q.15 which of the following can be granted valued policies in fire insurance.
a) Curios
b) Works of art
c) Obsolete machinery
d) All three (true)
Q.16 which of the following ensure that the amount of claim payable is less than the actual
amount of loss.
a) pri-rata average
b) ‘Excess’ limit
c) Salvage
d) All the three above (true)
Q.17 which of these statements is correct.
1. Subrogation under common law is implied in contract of indemnity.
2. Subrogation under common law arises only after payment of loss
a) 1 is correct
b) 2 is correct
c) Both are correct
d) Both are incorrect -(true)
Q.18 Subrogation condition dose not appear in
a) Fire policy
b) Marine cargo policy –(true)
c) Burglary policy
d) Baggage policy
Q.19 which of the following statements is correct?
1. Subrogation does not arise in personal accident insurance
2. Contribution does not arise in personal accident insurance
a) 1 is correct
b) 2 is correct
c) Both are correct (true)
d) Neither is correct
Q.20 Proximate cause has to be selected
a) When two or more causes operate simultaneously
b) When two or more causes operate one after another
c) When insured peril and excluded peril operate together-(true)
d) All three above
Q .21 which of the following does not affect the amount of loss payable under the policy.
a) Breach of utmost good faith-(true)
b) Salvage
c) Pro-rata average
d) ‘Excess’ clause
Q.22 Insurance contracts are not gambling transactions because
a) They are based on insurable interest-(true)
b) The policy is stamped
c) Full premium is paid
d) All material facts are disclosed
Q. 23 if an insurance policy is not stamped as per Indian Stamp Act, the contract becomes
a ) illegal
b) Void
c) Voidable
d) Unenforceable-(true)
Q.24 when there is fraudulent breach of utmost good faith the insurance contract becomes
a) Unenforceable in a Court of law
b) Illegal
c) Void-(true)
d) Voidable
Q.25 The contractual duty of utmost good faith applies
a) To motor insurance only
b) To marine cargo insurance only
c) To fire insurance only
d) All insurance where proposal form with a declaration clause is used -(true)
Q.26 which of the following documents have to be stamped as per Indian Stamp Act.
1) Endorsement on a fire policy increasing the sum insured
2) Marine open cover for export shipment
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither of the documents-(true)
Q. 27 which of the following is true
1) No claim can be paid under an illegal policy-(true)
2) Claim can be paid, at the option of the insurer under a void policy
a) 1 is true
b) 2 is true
c) Both 1 and 2 is true
d) Both are false
Q. 28 if there is a non-disclosure of a material fact due to oversight, the insurance contract
becomes
a) Void
b) Voidable (true)
C) illegal
d) None of the ab
Q.29 the principal of utmost good faith requires the proposer to disclose material facts
a) Which he knows
b) Which he ought to know
c) Which he knows and ought to know (true)
d) None of the above
Q.30 which of the following statement is true.
1. The proposer need not disclose facts which he considers as not material.
2. Facts which are of common knowledge need not be disclosed.
a) 1 is true
b) 2 is true (true)
c) Both are true
d) Both are false
Q.31 which of the following is an evidence of insurance contract.
a)
Payment of premium
b)
Acceptance of proposal
c)
Insurers’ prospectus
d)
Policy of insurance (true)
Q.32 which of the following statements is true
1. In fire insurance insurable interest is required both at the time of taking the policy and at
the time of loss.
2. In marine hull insurance insurance insurable interest is required both at the time of taking
the policy and at the time of loss.
a) Only1
b) Only2
c) Both are true (true)
d) Both are false
Q.33 Transfer of rights and liabilities of an insured to another person who has insurable interest
is known as
a) Consideration
b) Subrogation
c) Assignment (true)
d) Endorsement
Q.34 the legal right to insure means
a) Consideration as per Indian contact act
b) Competence as per Indian contract ac
c) Assignment
d) Insurable interest (true)
Q.35 which of the following principals prevents an insured from making a profit out of his loss
a) Proximate cause
b) pro-rata average
c) Indemnity-(true)
d) Insurable interest
Q.36 in which of the following insurance the principle of indemnity is modified.
a) Public liability
b) Fidelity guarantee
C) Marine cargo
D) Baggage insurance (true)
Q.37 An insured cannot recover more than his actual loss because of
a) Under-insurance
b) Excess clause
c) Principle of indemnity (true)
d) Franchise clause
Q.38 in which of the following policies the principle of indemnity is modified.
a) Fire declaration policy
b) Fire floating policy
c) Fire reinstatement policy (true)
d) Fire loss of profits policy
Q.39 which of the following is not a contract of indemnity in the strict sense.
a)Medical insurance
b) Personal accident insurance (true)
c) Fidelity guarantee
d) Burglary insurance
Q.40 The principal of indemnity is applied through deduction
a) For under insurance
b) For depreciation
c) Under franchise clause (true)
d) Under excess clause
Q.41 the principle of indemnity arises under the
Insurance Act 1938 (as amended)
IrDA Act
Indian contract Act
Common law
Q.42 which of the following statements is true.
1. Marine cargo policies are valued policies
2. Marine hull policies are valued policies
a) 1 is true
b) 2 is true
c) Both are false
d) Both are true (true)
Q.43 under which of the following clauses, the insured has to bear a part of the loss.
a) pro-rata average
b) Franchise clause
c) Excess clause
d) All the above clauses (true)
Q.44 The principle of subrogation applies under
a) Products liability policy
b) Fidelity guarantee policy
c) Fire policy
d) All the above – (true)
Q.45 when there is several policies on the same subject matter each insurer pays only a
proportion of the loss this is known as
a) pro-rata average
b) Franchise
c) Contribution – (true)
d) Subrogation
Q.46 which of the following statement is true.
1. Contribution applies only to contracts of indemnity
2. Contribution does not apply to personal accident insurance
a) 1 is true
b) 2 is true
c) Both are true (true)
d) Both are false
Q.47 How much is the amount of claim payable if sum insured is Rs 2 lakhs , the ‘excess ‘ limit is
Rs 20,000/- and the loss is rs.25000/-.
a) Rs.20, 000
b) Rs. 25000
c) Rs.15000
d) Rs. 5000-(true)
Q.48 what is the amount of claim payable if the loss is Rs.8,000 under a policy with a sum
insured of rs.1 lakh and excess limit is rs.10,000/-.
a ) nil-(true)
b) Rs.10, 000
c) Rs.8, 000
d) Rs.2, 000
Q.49 A policy with a sum insured of Rs.1 lakh is subject to a ‘franchise’ limit of Rs. 10,000/-.what
is the amount payable if the loss is Rs.15,000/-?
a) Rs.15000/-(true)
b) Rs.5, 000/c) Rs.25000/d) nil
Q.50 A policy with a sum insured of Rs.1 lakh is subject to a ‘franchise’ limit of Rs.10000/- what
is the amount of claim payable if the loss is Rs.5000/-?
a) Rs. 10,000
b) Rs.15, 000
c) Rs.5, 000
d) nil-(true)
CHAPTER-3
Q.1 as per the IRDA regulations in which of the following insurance, written proposal is not
necessary.
a) Fire insurance on cargo industrial risks
b) Marine cargo insurance-(true)
c) Compulsory public liability
d) Fidelity guarantees
Q.2 which of the following questions is common to all proposal forms.
a) proposer’s previous insurance
b) Proposer’s parents insurance
c) Past losses
d) All the above-(true)
Q.3 the purpose of the proposal from is to provide for
a) Material information
b) Declaration that the answer is true and accurate
c) Agreement of the insured that the form shall be the basis of the insurance contract
d) All the above three – (true)
Q.4 in which of the flowing clauses of the ‘scheduled’ from of policy, the parties to the contract
are mentioned.
a) Signature clause
b) Operative clause
c) Recital clauses- (true)
d) Warranties clause
Q.5 in which of the following clauses of the ‘scheduled’ from of policy reference is made to he
sum insured or limit of liability.
a) Recital clause
b) Operative clauses-(true)
c) Signature clauses
d) Warranties clauses
Q.6 if a warranty is breached the policy becomes
a) Void
B) Voidable-(true)
c) Invalid
D) Unenforceable in a court of law
Q.7 certificates of insurance are issued in
a) Marine hull insurance
b) Marine cargo insurance-(true)
c) Engineering insurance
Q.8 in motored insurance certificates of insurance are issued because
a) Make of vehicle is not known
b) Year of manufacture is not known
c) Seating capacity is not known
d) it is required by the motored vehicles Act-(true)
Q.9 which of the following statement is true.
1. Endorsements are issued at the time of issuing the policy as part of policy
2. Endorsements are issued after the policy to record alterations
a) 1 is true
b) 2 is true
c) Both are true
d) Both are false
Q.10 renewal notice is issued because
a) It is required under the insurance act
b) Of IRDA regulations
c) It is a healthy business practice-(true)
d) It is provided by policy conditions
CHAPTER-4
Q.1 which of the following is paid out of ‘pure premium’
a) Losses – (true)
b) Agency commission
c) Expenses of management
d) Unexpected heavy losses
Q.2 rate of premium is based on
a) Degree of hazard
b) Variations in degree of hazard
c) Past loss experience
d) All the above-(true)
Q.3 to arrive at final rate by loading the pure rate which of the following is not taken in to
account.
a) Past losses-(true)
b) Unexpected heavy losses in the future
c) Margin for expenses of management
d) Margin for profits
Q.4 final rate of premium is arrived at by loading the pure rate of premium to provide for
a) Commission to intermediaries
b) Expenses of management
c) Margin for profit
d) All the above three – (true)
Q.5 after withdrawal of tariffs w.e.f.1.1.2007, insurers cannot charge their own rates for which
of the following classes of insurance.
a) Fire insurance
b) Engineering insurance
c) Motor third party insurance-(true)
d) Workmen, s compensation insurance
Q.6 which of the following statements is true
1. Insurers charge for motor third party policies rates of premium fixed by IRDA.
2. Insurers can charge higher rates based on their own past loss experience.
a) 1 is true-(true)
b) 2 is true
c) Both are true
d) Both are false
Q.7 under IRDA guidelines which of the following policies does not fall under internal tariff
rated products.
a) Burglary insurance
b) Fidelity insurance
c) Personal accident insurance
d) Group health insurance-(true)
Q.8 under IRDA guidelines which of the following policies fall under individual and experience
rated products.
a) Group personal accident
b) Group health
c) Motor fleets
d) All the above-(true)
Q.9 under IRDA guidelines which of the following policies fall under package or customized
products
a) Homeowner’s comprehensive
b) Shopkeeper’s comprehensive
c) Bankers’ blanket
d) All the above-(true)
Q.10 under IRDA guidelines which of the following policies fall under exposure rated products.
a) Earthquake risk-(true)
b) Policies with a sum insured of RS.2500 corers or more at one location for material damage
c) Policies with assume insured of Rs.2500 corers or more at one location for combined material
damage and business interruption
d) Liability insurance (Rs.100 cores or more per event)
CHAPTER-5
Q.1 as per the insurance act, 1938 (as amended) an insurer has to obtain a report from a
licensed surveyor if the loss equals or exceeds.
a) RS.15, 000
b) RS.20, 000- (true)
c) Rs. 25000
d) Rs.50, 000
Q.2 which of the following is true.
No insurer shall assume any risk unless and until
a) The premium is received in advance
b) The premium is guaranteed to be paid
c) A deposit is made in advance
d) All the above-(true)
Q.3 which of the following are the function of IRDA:
1. To regulate the rates of premium offered by insurers
2. To regulate investment of funds by insurance companies
a) 1 only
b) 2 only
c) Both are true-(true)
d) Neither
Q.4 as per IRDA regulations no commission or brokerage can be paid by insurer’s
exceeding__________% of premium payable in respect of policy through agents or brokers.
a) 10%
b) 15%
c) 20%
d) 30 %- (true)
Q.5 which of the following are the functions of IRDA.
To protect the interests of policy holders in matter of
Settlement of claims
B) Fair and equitable rates of premium
Terms and condition of insurance
All the above-(true)
Q.6 as per general insurance business (nationalization) amendment act 2002, general Insurance
Corporation of India shall carry on
a) Reinsurance business only-(true)
b) Overseas reinsurance business only
c) Aviation insurance business only
d) Administration of motor third party Insurance pool only
Q.7 which of the following statements is true under code of conduct for agents.
1. The agent must disclose his license to the prospect on demand
2. The agent must disclose the scales of commission under policies offered for sale,
a) Only 1
b) Only 2
c) Both are true- (true)
d) Both are false
Q.8 As per the code of conduct, which of the following is true.
The agent must inform promptly the prospect about
The acceptance of the proposal by the insurer
The rejection of the proposal by the insurer
1 is true
2 is true
Both are true (true)
Both are false
Q.9 as per Code of conduct, a corporate agent cannot procure more than___________% of the
total premium in his portfolio of insurance business from one organization.
a) 20 %
b) 30 %
c) 40 %
d) 50 % (true)
Q. 10 an insurance agent whose license has been cancelled by the designated person cannot
apply for fresh license unless a period of _______ years has been elapsed from the date of such
cancellation.
a) 3 years
b) 4 years
c) 5 years (true)
d) 6 years
Q. 11 Under IRDA guidelines which of the following is eligible to become a corporate agent.
a) A banking company
b) A co-operative society
c) A non-government organization
d) All of the above (true)
Q.12 who among the following is eligible to be nominated ‘Corporate Insurance Executive’ by a
corporate agent.
a) A partner (in the case of a firm)
b) A director (in the case of a company)
c) One or more of its officers
d) All the above (true)
Q .13 which of the following statements is true.
1. Code of conduct applies to corporate insurance executives
2. Code of conduct applies to'specifide persons' of corporate agents
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Neither is true
Q.14 which of the flowing statements is true
1. Corporate insurance executive has to undergo training and pass the licensing examination
2. 'Specified person' have to undergo training and pass the licensing examination
a) 1 is true
b) 2 is true
c) Both are true (true)
d) Neither is true
Q.15 'specified persons' nominated for soliciting insurance business by a corporate agent can
be
a) One or more of its partners
b) One or more of its directors
c) One or more of its employees
d) All the above-(true)
Q.16 IRDA advertisement regulation apply to
a) Insurance companies
b) Insurance brokers
c) Insurance agents
d) All the above-(true)
Q.17 which of the following is not a function of a direct broker as per IRDA regulations.
a) Advise client on appropriate cover and terms
b) Submit insurer’s premium quotation to client
c) Pay premium to insurers on behalf of client -(true)
d) Assist in negotiation of claims
Q.18 which of the following are function of direct broker as per IRDA regulations
a) To provide advice to client on appropriate covers
b) To provide underwriting information to insurers
c) To provide insurance consultancy service
d) All the above-(true)
Q.19which of the following statements is true
1. Code of conduct does not apply to insurance brokers
2. Code of conduct does not apply to surveyors and loss assessors
a) 1 is true
b) 2 is true
c) Both are true
d) Both are false-(true)
Q20. As per IRDA regulations which of the following are not function of third party
administrators.
a) Collection of premium - (true)
b) Collection of claims documents
c) claims scrutiny and processing
d) Claims payment
Q.21 third party administrator's' cash less ‘services mean
a) Admission to a specified hospital without admission fees payment
b) Admission to a specified hospital without deposits
c) Discharge from specified hospital without payment of covered expenses of treatment
d) All the above-(true)
Q.22 under IRDA regulations it is the duty of an insurer to furnish to the insured free of charge a
copy of the proposal from, with in___________days of the acceptance of a proposal.
a) 7 hours
b) 15 days
c) 30 days-(true)
d) 45 days
Q23 As per IRDA regulation a surveyor has to be appointed within ______ hours /days of
receipt of claim intimation from the insured.
a) 24 hours
b) 72 hours-(true)
c) 7 days
d) 15 days
Q24 As per IRDA regulations surveyor shall submit the survey report to the insurer within
________days of his appointment.
a) 15days
b) 30days-(true)
c) 45 days
d) 60 days
Q.25 insurer shall, with in a period of _________days of receipt of survey report offer a settle
ment of claim to the insured
a) 15 days
b) 30days -(b)
c)45 days
d)60days
Q.26 rejection of claim by the insurer shall be communicated to the insured with in a period of
__________days from the receipt of the survey report.
a)15 days
b) 30days-(true)
c)45days
d) 60 days
Q.27 on acceptance of settlement by the insured, insured, insurer shall make the
Payment within_________daysfrom the date of acceptance of offer.
a) 7 days -(true)
b) 10days
c) 45 days
d) 60days
Q.28an insurer shall respond within _____days of receipt of communication from policy holders
in matters of servicing under the policy.
a) 3days
b) 7 days
c) 10days-(true)
d) 15days
Q.29 micro-insurance agent under the IRDA regulation means
a) a non0goverment organization
b) a self help group
c) A micro- finance group
d) All the above-(true)
Q.30micro-insurance agent under the IRDA regulations means
a) a non - government organization
b) A self help group
c) A micro- finance group
d) All the above-(true)
Q.31 which of the following statements is true.
1. A life insurer may offer life micro-insurance product as well as general micro -insurance
products
2. A general insurer may offer general micro-insurance product as also life micro-insurance
products.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.32 which of the following statements is true.
1. A micro-agent shall not distribute any produce other than a micro- insurance product.
2. A micro-agent shall not work for more than one life insurer and one general insurer.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.33 which of the following are allowed, under the regulation s, to distribute micro- insurance
products
a)individual agents
b) Corporate agents
c) Brokers
d) All the above-(true)
Q.34 which of the following statements is true.
1. Code of conduct regulations apply to micro- insurance agents
2. Advertisement regulations apply to micro-insurance agents
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.35 as per IRDA Regulations, the remuneration to the micro-insurance agent for non- life
insurance4 business shall not exceed_______%of premium.
a) 5
b) 10
c) 15-(true)
d) 20
Q.36 consumer protection act applies to
a) private sector
b) Public sector
c) Cooperative sector
d) All the above-(true)
Q.37 a district forum under the consumer protection act can entertain a complaint wher the
compensation claimed is less
Than Rs_____
a) 10 lakh
b) 20lakh-(true)
c) 30 lakh
d) 50 lakh
Q.38 the national commission under consumer protection act can entertain a complaint where
the compensation claimed exceeds Rs_____.
a) 25 lakh
b) 50 lakh
c) 75 lakh
d) 1 corer-(true)
Q.39 which of the following is true.
1. State commission can entertain appeals against the order of the district forum.
2. National commission can entertain appeals against the order of the state commission.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.40 an appeal against the order of the national commission can be made with in a period
of_______days from the date of order.
a) 30days-(true)
b) 45days
C) 60days
d) 90 days
Q.41 which of the following statements is true.
1. Redressalof public grievances rules apply to life and general insurance.
2. These rules apply to personal lines insurance only.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both is false
Q.42 which of the following complaints cannot be made to the ombudsman.
a) Total repuditiation of claim by insurer
b) Partial repudiation of claim by insurer
c) Delay in settlement of claims
d) Premium rates are high-(true)
Q.43 no complaints to the ombudsman shall lie
a) If the complaint is made later than one year after the insurer had rejected the representation
b) If the complaint is pending in any consumer forum
c) If the complaint is subject of arbitration
d) All the above-(true)
Q.44which of the following is grounds for filing a complaint to the ombudsman.
a) Insurer had rejected the complaint
b) Complainant had received any reply to his written representation to the insurer with in one
month after of complaint
c) The complainant is not satisfied with the insurer’s reply
d) All the above-(true)
Q.45 which of the following is true as per the redressal of public grievances rules.
1. The award should not be more than Rs.20lakh
2. The award should be made within three months from the date of complaint
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
CHAPTER-6
Q.1which of the following is not insured under standard Fire special perils policy.
a)Goods in factories
b) Goods in open
c) Goods in transit by rail/road-(true)
d) Goods in god owns
Q.2 the term 'fire' under the fire policy means
a) Natural heating
b) Burning by order of public authority
c) Spontaneous combustion
d) Accidental ignition-(true)
Q.3 which of the following are covered in fire insurance.
a) Raw materials
b) Semi-finished goods
c) Packing materials
d) All the above-(true)
Q.4 which of the following statements is true.
1. Explosion is covered under standard fire and special perils policy
2. Implosion is covered under standard fire and special perils policy.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.5 which of the following meanings of aircraft damage is not correct.
a) Damage by aircraft
b) Damage by other aerial devices
C) Damage by pressure waves-(true)
d) Damage by other space devices
Q.6 which of the following statements is true.
1. Terrorism is including in riot strike and malicious damage.
2. Terrorism is a separate to cover at extra premium without Riot, strike and malicious damage
a) 1 is true
b) 2 is true
c) Both are true
d) Both are false-(true)
Q.7 terrorism cover for industrial risks is subject to deductible of
a) 0.5%of total sum insured-(true)
b) 1.0% of total sum insured
c) 2.0% of total sum insured
d) 3.0% of total sum insured
Q.8 which of the following is not impact damage covered under standard fire and special perils.
Visible physical damage by direct contact with
a) Any road vehicle
b) Any rail vehicle
c) Insured’s own forklift on the premises-(true)
d) Any animal
Q.9 which of the following is not covered under standard fire and special perils policy.
a) cyclone
b) Hurricane
c) Earth quake-(true)
d) Flood
Q.10 subsidence covered under standard fire& special perils policy means
a) Normal cracking
b) Settlement
c) Bedding down of new structures
d) Subsidence of part of the site on which the property stands-(true)
Q.11 the deductible for act of god perils under standard fire and special perils policy is
a) 1 % of each and every loss
b) 3 % of each and every loss
c) 4 % of each and every loss
d) 5 % of each and every loss-(true)
Q.12 the deductible for perils other than act of god perils under standard fire and special perils
policy is
a) Rs. 5.000/- for each and every loss
b) Rs.10, 000/- for each and every loss-(true)
c) Rs.15, 000/-for each and every loss
d) Rs.20, 000/-for each and every loss
Q.13 which of the following is true under standard fire and special perils policy.
1. Pollution which itself result from an insured peril is covered
2. Insured peril itself results from pollution is covered
a) 1 is true
b) 2 is true
c) Both sure true-(true)
d) Both are false
Q.14 the standard fire and special perils policy automatically covers works of art for an amount
not exceeding
a) Rs. 5,000/b) Rs. 10,000/-(true)
c) Rs. 20,000/d) Rs.25, 000/Q.15 which of the following statements is true
1. All dispute regarding claim under the fire policy are to be refer to a civil court.
2. Disputes regarding the amount of claim payable are to be referred to arbitration.
a) 1 is true
b) 2 is true-(true)
c) Both are true
d) Both are false
Q.16 The maximum limit of cover under architects’ Fees ‘add-on’ cover .is_____% of the
a) 2.5%
b) 5.0%
c) 7.5 %-( true)
d) 10.0%
Q.17 the sum insured under Debris Removal add-on cover cannot exceed________% of the
total sum insured under the fire. Policy
a) 5%
b) 10 %-( true)
c) 15%
d) 20%
Q.18 which of the following is paid under debris Removal add-on cover.
a) Costs of removal of debris
b) Costs of dismantling
c) Costs of demolishing
d) All the above-(true)
Q.19 which of the following is coverd under fire policy at extra premium.
a) Impact damage
b) Bush fire
c) Forest fire – (true)
d) Subsidence
Q.20 according to policy condition the fire policy ceases cover if the builinding insured
becomes unoccupied becomes unoccupied for more than
a) 15 days
b) 30 days0-(true)
c) 45 days
d) 60 days
Q.21 under fire policy pro-rata average applies when there is
a) Double insurance
b) Over insurance
c) Under insurance-(true)
d) Subrogation
Q.22 which of the following property is covered under the fire policy if expressly stated in the
policy.
a) Books of account
b) Business books
c) Computer system records
d) All the above-(true)
Q.23 if liability for a claim under the fire policy is disclaimed by the insurer, the insurer, the
insured has to file a suit in a court of law within _______month of the date of disclaimer.
a) 6 months
b) 12 month-(true)
c) 24 months
d) 36months
Q.24 which of the following is excluded under deterioration of stokes add-on cover to the fire
policy.
a) Act of government
b) Act of municipal authority
c) Rationing, etc. Of power supply
d) None of the above-(true)
Q.25 which of the following perils can be an’ add-on’ cover at extra premium under the
standard fire and special perils policy.
a) Flood
b) Explosion
c) Earthquake-(true)
d) Cyclone
Q.26 which of the following perils is not covered under standard fire and special perils policy.
a) Flood
b) Subsidence
c) Blush fire
d) Forest fire- (true)
Q.27 debris removal expenses are covered up to ___% of the claim amount under standard
fire and special perils policy
a) 1 %-(true)
b) 2%
c) 3%
d) 4%
Q.28 Architect’s fees are covered up to _________% of the claim amount under standard fire
and special perils policy
a) 1%
b) 2%
c) 3 %-( true)
d) 4%
Q.29 which of the following statements is true
1. Terries is an exclusion under the standard fire and special perils policy only
2. Terrorism can be covered at extra premium along with riot, strike and malicious damage
a) 1 is true
b) 2 is true
c) Both are true – (true)
d) Both are false
Q.30 which of the following statements is true.
As per fire policy condition on the happening of a loss
The insurers have a right to take posse ion of the premises where the loss has occurred.
The insured can abandon the damaged property to the insurers.
1 is true-(true)
2 is true
Both are true
both are false
Q.31 under fire policy sum insured is Rs.1, 00,000/-, loss is Rs.60, 000/-, value of the time of
proposal Rs.1,50,000/-.value of property at the time of loss Rs.2, 00,000. What is the amount of
loss payable?
a) rs.40, 000/b) Rs.30, 000/-(true)
C) nil
d) Rs.60, 000/Q.32 which of the following commodities are susceptible to spontaneous combustion.
a) Groundnuts
b) Copra cake
c) Dyes and chemicals
d) All the above-(true)
Q.33 under earth quake add-on cover, excess is_______% of each and every claim
a) 2%
b) 3%
c) 4%
d) 5%-(true)
Q.34 which of the following is not covered under spoilage material damage extension.
a) Loss of stok in process
b) Loss of stock in god owns-(true)
c) Damage to machinery
d) Damage to containers&equipment
Q.35 escalation clause added to the fire policy allows automatic regular increase not exceeding
____% in sum insured throughout the period of the policy.
a) 5%
b) 10%
c) 25 %-( true)
d) 50%
Q.36which of the statements is true or false under fire insurance
1. Escalation clause applies to building and machinery only.
2. Escalation clause applies to fluctuating stocks.
a) Statement 1 is true-(true)
b) Statement 2 is true
c) Both statements are true
d) Both statements are false
Q.37 which is the following is not covered under fire floating policy.
a) Stoks in process blocks
b) Stocks in godown
c) Stoks in the open
d) Stocks in transit-(true)
Q.38 where there is frequent fluctuations in stocks/stock values , which of the following
provides suitable cover.
a) Fire floating policy
b) Fire policy with escalation clause fire renstatement value policy
d) Fire declaration policy-(true)
Q.39 the minimum retention of premium under fire declaration policy is_____% of the annual
premium
a) 10%
b) 25%
c) 50 %-( true)
d) 75%
Q.40 sum insured (provisional) under fire declaration policy is rs.100, 00,000/-Rate of premium
is Re.1.00 per mile. Average sum insured is Rs.50, 00,000. the refund premium is
a) Rs.5000/b) Rs.6000/c) Rs.10, 000/d) nil
Q.41 fire reinstatement value policy is not issued in respect of_________.
a)building
b) Plant
c) Machinery
d) stock-(true)
Q.42 under which of the following circumstances market value only is payable under fire
reinstatement value policy.
a) Insured is unwilling to reinstate
b) Heavy under insurance
c) Breach of warranty
d) Breach of utmost good faith
Q.43 under which of the following circumstances reinstatement basis of settlement will not
apply under fire reinstatement value policy.
Q.48 The turnover of a business consists of
a) Variable charges and standing charges
b) Standing charges and net profit
c) Variable charges and net profit
d) Variable charges, standing charges and net profit-(true)
Q.49 Gross profit, in the context of consequential loss (fire) policy
Means:
a) Turnover minus variable and standing charges
b) Net profit and cost of production
c) Net profit and standing charges-(true)
d) Net profit and variable charges
Q.50 which of the following statements is true.
1. The sum insured under consequential loss (fire) policy is to be fixed by the insured.
2. The sum insured is to be computed from the insured's accounts
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.51 turnover is Rs.20 lacks. Cost of production Rs.14 lacks. Fixed over head rs 4 lacs net profit
Rs. 2 lacks calculate the sum insured for a consequential loss (fire) policy.
a) Rs. 10 lacks
b) Rs.18 lacks
c) Rs.2 lacks
d) Rs.6 lacks-(true)
Q.52 turnover is Rs.10 lacks .cost of production Rs.7 lacks .fixed over headsRs.2 lacks .calculate
the net profit for consequential loss (fire) policy.
a) 1 lack-(true)
b) 3 lack
c) 5 lack
d) 8 lack
Q.53 which of the following statements is true.
1. The sum insured under consequential loss (fire) policy should be equal to gross profits of the
indemnity period selected
2. The sum insured should be equal to the net profit of the indemnity period selected.
a) 1 is true-(true)
b) 2 is true
c) Both are true
d) Both are false
Q.54which of the following statements is true.
1. The indemnity period is to be selected by the insured.
2. The period of indemnity May varyfrom3 months to 3 years
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.55 annual amount of gross profit is Rs.1, 20,000. Calculate the sum insured under
consequential loss (fire) policy for an indemnity period of 24 months.
a) Rs.60, 000
b) Rs.90, 000
c) Rs.1, 20,000
d) Rs. 2, 40,000-(true)
Q.56 which of the following is not a standing charge under consequential loss (fire) policy.
a) Salaries
b) Office expenses
c) Cost of stationery
d) Cost of raw materials-(true)
Q.57 which of the following are standing charges.
A) Insurance premiums
b) Rent
c) Interest on loans from banks
d) All the above-(true)
Q.58 annual gross profit is Rs.1, 20,000/- calculate the sum insured under consequential loss
(fire) policy for a period of 9 months.
a) Rs.60, 000/b) Rs, 90,000/-
C) Rs.1, 20,000. /--(true)
d) Rs. 1, 80,000/Q.59 which of the following must occur before aloss under consequential loss (fire) policy
becomes payable.
a) Insured peril must occur
b) Property damaged by the insured peril
c) insured's business is interrupted
d) All the above-(true)
Q.60 which of the following statements is true.
1. Consequential loss (fire) policy must be taken in conjunction with material damage (fire)
policy
2. Payment of loss under consequential loss (fire) policy is subject to payment of loss under fire
material damage policy
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
CHAPTER-7
Q.1 which of the following falls under marine cargo insurance.
a) Export shipments
b) Import shipments
c) rail/road consignments
d) All the above-(true)
Q.2 under which of the following the seller arranges cargo in surance for the entire voyage.
a) FOB contract
b) FOR contract
c) C&F contract
d) CIF contract-(true)
Q.3 which of the following statements is true.
1. The seller is responsible for cargo insurance till the goods are placed on board the steamer
under FOB sale contract.
2. The buyer is responsible for cargo insurance once the goods are placed on board under c&f
contract.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.4 which of the following statement is true
1. For export/import cargo policies, institute cargo clauses (i.c.c) are used.
2. For inland transit consignments, local clauses are used.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.5 which of the following is covered under instuet cargo clauses.(C)
a) Fire
b) Explosion
c) Derailment of land conveyance
d) All the above-(true)
Q.6 which of the following statements is true.
1. General average sacrifice is covered under I CC (C)
2. Jettison is covered under ICC (C)
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.7 which of the following is not covered under institute cargo clause(C).
a) Standing of vessel
b) Washing overboard
c) Collision of vessel
d) Jettison
Q.8 which of the following risks are covered under instuite cargo clauses(B) .
a) Washing overboard
b) Total loss of package during loading
c) earthquake
d) All the above-(true)
Q.9 which of the following falls under ‘Extraneous Risks’.
a) Volcanic eruption
b) Lightning
c) Earthquake
d) Rain water damage.-(true)
Q.10which of the following fall us under; Extraneous Risks;
a) Fresh water damage
b) Breakage
c) Leakage
d) All the above-(true)
Q.11 which of the following extraneous risks can be added under ICC (B) clauses on payment of
extra premium.
a) Heating
b) Sweating
c) Breakage
d) All the above-(true)
Q.12 which of the following statements is true or false.
1. ICC (B) & (C) provide specified risks cover
2. ICC (A) provide ‘all risks’ cover
a) Statement 1 is true
b) Statement 2 is true
c) Both statements are true-(true)
d) Both statements are false
Q.13 malicious damage is automatically covered under
a) ICC (A) clauses-(true)
b) ICC (B) clauses
c) ICC(C) clauses
d) Not covered under any of the above
Q.14 which of the following risks can be added to ICC (B) clause on payment of extra premium.
a) Theft
b) Pilferage
c) Non- delivery
d) All the above-(true)
Q.15 which of the following exclusions does not appear under ICC (A) clause.
a) Inadequate packing
b) Inherent vice
c) Mailicious damage-(true)
d) Loss by delay
Q.16 which of the following losses are not deemed to be accidental losses.
a) Ordinary leakage
b) Ordinary wear and tear
c) Inherent vice
d) All the above-(true)
Q.17 which of the following risks excluded under ICC calluses can be covered on payment of
extra premium.
a) Loss by delay
b) Loss from insolvency of owners of the vessel
c) Loss due to inadequate packing
d) War and kindred perils-(true)
Q.18 the cover under the transit clause of ICC terminates on the expiry of ___________days
after discharge from the vessel at the final port of discharge.
a) 15 days
b) 30 days
c) 45 days
d) 60 days – (true)
Q.19 which of the following statement is true.
1. The duration of cover for marine risks is for the entire voyage
2. The duration of cover for war risks is restricted to the time when the goods are water borne
and not on land.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.20 which of the following statement is true.
1. The duration of cover for strikes, riot and civil commotion applies during the entire voyage on
a warehouse to warehouse basis.
2. The duration of cover for strike, riots and civil commotion applies only when the goods are
waterborne and not on land.
a) 1 is true-(true)
b) 2 is true
c) Both are false
d) Both are true
Q.21 under institute cargo clauses (AIR) the period of cover after unloading of cargo from the
aircraft at the final place of discharge is limited to ___________days.
a) 15 days
b) 30days-(true)
c) 45 days
d) 60days
Q.22 under institute cargo clauses (AIR), at extra premium
1. War risks can be covered
2. Strike, riots and civil commotion risks can be covered.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) both are false
Q.23 under inland transit (Rail/road) clause Bon payment of extra premium
1 war risks can be covered
2. Strike, riots and civil commotion risks can be covered
a) 1 is true
b) 2 is true – (true)
c) Both are true
d) Both are false
Q.24 which of the following is not covered under inland transit (Rail/Road) clause B.
a) Fire
b) lightningc) Breakage of bridges
d) Non- delivery-(true)
Q.25 under inland transit (Rail/Road ) clause B&A, the duration of cover terminates after expiry
of ________ days after arrival of the railway wagon at the final destination railway station.
a) 3 days
b) 7 days-(true)
c) 10 days
d) 15 daysrtr66
Q.26 normal rates of premium apply for cargo carried in vessels approved by following
classification societies.
a) Lloyd’s register of shipping
b) American bureau of shipping
c) Indian register of shipping
d) All the above-(true)
Q.27 under which of the following circumstances marine cover not is issued:
a) Name of steamer not known
b) Number and date of railway receipt is not known
c) Number of packages involved in transit is not known
d) All the above-(true)
Q.28 which of the following statements is true.
1. Certify cate of insurance under open policy is not stamped
2. Certificate of insurance under open cover is stamped.
a) 1 is true
b) 2 is true
c) Both are true – (true)
d) Both are false
Q.29 which of the following statement is true
1. Open policies are useful to cover inland consignments.
2. Open cover is useful to cover export/import shipments
a) 1 is true
b) 2is true
c) Both are true-(true)
d) Both are false
Q.30 the basis of valuation adopted under marine open cover is the prime cost of goods , costs
of freight and insurance plus__________% to cover profits.
a) 5%
b) 10 %-( true)
c) 15%
d) 20%
Q.31 for which of the following, special declaration policy is not issued.
a) Rail dispatches
b) Road dispatches
c) Inland water ways dispatches
d) Export/import shipments-(true)
Q.32which of the following statements is true.
1. Actual total loss occurs where the subject matter of insurance is entirely destroyed.
2. Constructive total loss occurs where the cost of repairs of damaged goods exceeds the value
of goods after repair.
a) 1 is true
b) 2is true
c) Both are true-(true)
d) Both are false
Q.33 which of the following risks covered under instuite cargo clauses (B) are not covered
under institute cargo clauses (C)
a) Stranding of vessel
b) Collision of vessel
c) sea-water damage
d) Explosion
Q.34 which of the following risk is automatically covered under institute cargo clauses (A)
without extra premium.
a) Inherent vice
b) Country damage-(true)
c) War and kindred risks
d) Strikes, riots and civil commotion
Q.35 which of the following perils cannot be added by extra premium to institute cargo clauses
(B)
a) Fresh water damage
b) Rain water damage
c) Inherent vice-(true)
d) Country damage
Q.36 the inland transit (Rail/Road) clause c covers the following risks.
a) Fire and theft
b) Derailment
c) Inherent vice-(true)
d) Country damage
Q.37 under inland transit (Rail/Road) clause (C), the insurance ceases
a) After 3 days of arrival of wagon at destination railway station
b) After 7 days of arrival of wagon at destination railway station
c) After 15 days of arrival of wagon at destination railway station
d) On unloading of each package-(true)
Q.38 the clause in open cover which limits the liability of insurers at any one time or place
before the shipment is known as
a) Declaration clause
b) Basis of valuation clause
c) Location clause-(true)
d) Limit per bottom clause
Q.39 when badly damaged goods are abandoned because the cost of reconditioning exceeds
the value of goods after reconditioning, the loss is settled as
a) Salve loss
b) Actual total loss
c) Constructive total loss-(true)
d) General average loss
Q.40 Extra charges in cargo claims refer to
a) Landing charges
b) Reconditioning charges
c) Warehousing charges
d) Survey fees-(true)
Q.41 which of the following is not required under rail transit claims.
a) Invoice
b) Bill of lading-(true)-(true)
c) Original policy
d) Non- delivery certificate
Q.42 which of the following expenses does not fall under sue and labor charges.
a) Landing charges
b) Warehousing charges
c) Reconditioning charges
d) Loss surveyor’s fees-(true)
Q.43 which of the following statement is true
1. In cargo losses, the survey fees are paid by the claimant initially
2. Survey fees are reimbursed by insurers, if the claim is admitted.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.44which of the following documents is not required under particular average claims.
a) policy
b) Bill of lading
c) Survey report
d) General average statement-(true)
Q.45 which of the following documents is not required under Road transit claims.
a) original policy
b) Consignment note
c) Letter of subrogation (stamped)
d) Special power of attorney (stamped)-(true)
CHAPTER-8
Q.1 which of the following does not fall under ‘miscellaneous’ classification of motor vehicles .
a) ambulance
b) mobile dispensaries
c) motorized rickshaws-(true)
d) cinema, film recording vans
Q.2 under motor vehicles act, liability under workmen’s compensation act towards which of the
following is compulsorily insurable.
a) paid driver of vehicle
b) conductor ( public service vehicle)
c) ticket examiner (public service vehicle)
d) all the above-(true)
Q.3 the liabilities which require compulsory insurance under motor vehicles are for death or
bodily injury
a) of any third party
b)of any passenger of a public service vehicle
c) damage to any propertyof a third party
d) all the above-(true)
Q.4 under the motor vehicles act, the limit of liability for damage to third party is Rs_________.
a) Rs. 10,000/b) Rs. 6,000/--(true)
c) Rs.20,000/d) Rs.25,000/Q.5 under the motor vehicles act the limit of liability for death or bodily injury of a passenger in
a public service vehicle is __________.
a) Rs. 25,000
b) Rs.50,000
c) Rs.1,00,000
d) unlimited-(true)
Q.6which of the following statements is true.
Liability under workmen’s compensation act is to be compulsorilwhich of the following
statements is true.
Liability under workmen’s compensation act is to be compulsorily insured in respect of
Workers carried in a goods vehicle
Workers carried in a public service vehicle
1 is true-(true)
2 is true
Both are true
Both are false
Q.7 under the motor vehicles act. The amount of compensation fpr death on the basis of nofault liability is Rs.______.
a) Rs.25000/b) Rs.50,000/--(true)
c) Rs.1,00,000/d) Rs.2,00,000
Q.8 under the motor vehicles act the fixed compensation for death in’hit and run motor
accident is Rs.________
a) Rs.12,500/b) Rs.25,000/--(true)
c) Rs.50,000/d) Rs.1,00,000/Q.9 which of the following statements is true .
1. compensation to victims of ‘hit and run’motor accident are payable out of’ solatium fund;
2. compensation for victims of motor accident on’no-fault’ basis is a awareded by the motor
accident oclaim tribunal.
a) 1 is true
b) 2 is true
c) both are true –(true)
d) both are false
Q.10 Lia bility onlu motor policy covers liability for damage to
a) property of third party-(true)
b)property belonging to insured
c) property held in trust by the insured
d) property in the custody of the insured
Q.11 personal accident cover for owner –driver under liability only motor policy applies only if
the
a) owner-driver is the registered owner of the insured vehicle.
b)owner- driver is the insured named in the policy.
c) owner – driver holds an effective licence.
d) all the above-(true)
Q.12 under personal accident cover for owner-driver the capital sum insured for two-wheelers
is
a) Rs.25,000/b) Rs.50,000/c) Rs.1,00,000/--(true)
d)Rs.2,00,000/Q13 under personal accident cover for owner-driver the capital sum insured for private cars is
Rs. 50,000/Rs.1,00,000/Rs.2,00,000/--(true)
Rs.3,00,000/Q.14 under personal Accident cover for owner-driver the capital sum insured for commercial
vehicles is
a) Rs.50,000/b) Rs.1,00,000/-
c) Rs.2,00,000/--(true)
d) Rs.3,00,000/Q.15 which of these statements is true and false.
1.compulsory motor third party insurance covers negligence liability
2. compulsory motor third party insurance covers no- fault liability
a) statements 1 is true
b) statements 2 is true
c) both statements are false
d) both statements are true-(true)
Q.16 which of these statements is true or false
Compensation from solutiom fund is paid for
No- fault liability claims
Hit and run claims
Both are true
Both are false
1 is true
2 is true-(true)
Q.17 in the event of death of sole insured under a motor policy the policy will remain valid for a
____months from the date of death of the insured or until the expiry of the policy (whichever is
earlier)
a) 3 months-(true)
b) 6 months
c) 9 months
d) 12 months
Q.18 applications from legal heris of the deceased insured for transfer of policy to their name
should be accompanied by documents. Which of the following is not required.
a) death certificate
b) post-mortem report –(true)
c) proof of title to the vehicle
d) original policy
Q.19 which of the following is not covered under private car package policy.
a) self-ignition
b) earthquake
c) terrorist act
d) all are covered –(true)
Q.20 under private car package policy, the rate of depreciation for all parts made of glass is
a) 20%
b) 30%
c) 50%
d) nil-(true)
Q.21 which of the following exclusions does not appear in own damage section of private car
package policy.
a) mechanical breakdown
b) wear and tear
c) electrical break down
d) malicious damage-(true)
Q.22 the rates of depreciation for replacement of rubber parts under private car package policy
is.
a) 10%
b) 20%
c) 30%
d) 50%-(true)
Q.23 which of the following is covered under private car package policy
a) transit of the insured vehicle by road
b) transit of the insured vehicle by rail
c) transit of the insured vehcle by air
d) all the above-(true)
Q.24 which of the following is not covered under private car package policy.
a) earthquake
b) lightning
c) loss of accessories unless the vehicle is stolen at the same time-(true)
d) landslide
Q.25 under the private car package policy the towing charges in respect of a damaged vehicle
mean
a) cost of protection to the vehicle
b) cost of removel to the nearest repairer
c) cost of re-delivery to the insured
d) all of the above –(true)
Q.26 The maximum towing charges of a private car payable is restricted to
a) Rs.750/b) Rs.1,000/c) Rs.1,500/-(true)
d) Rs.2,000/-
Q.27 which of the following statements is true .
1. the insured;s declard value of the vehicle is fixed on the basis of manufacter;s listed selling
price of the brand and model of the vehicle at the commencement of insurance
2. the insured;s declared value is the sum insured under the policy.
a) 1 is true
b) 2is true
c) both are true-(true)
d) both are false
Q.28 insured’s declared value of obsolete vehicles is to be determined by
a) the surveyor
b) the insured
c) the insurer
d) the insured and insured and insurer-(true)
Q.29 which of the following statements is true.
The insured declared value shall be treated as the market value through out the policy period
without any depreciation for the purpose of
Actual total loss
Constructive total loss
1 is true
2 is true
Both are true-(true)
Both are false
Q.30 under private car package policy constructive total loss arises if the cost of repairs of the
damaged vehicle exceeds__________%
a) 75%-(true)
b) 80%
c) 90%
d) 100%
Q.31under private car package policy which is of the following exclusions does not appear in
genral exceptions clause of the policy
a) driving without
b) damage out side
c) breach of limitations as to use ‘ clause
d) driving under the influence of intoxicating liquor-(true)
Q.32 constructive total loss in motor insurance aries when
a) the vehicle is station
b) the vehicle is total wreck
c) the vehicle is beyond repairs
d) the cost of repair exceeds 75% of IDV of vehicle-(true)
Q.33 which is the following is true under private car package policy.
1. The liability of insurer for total loss does not exceed insured declared value less the value of
the wreck.
2. The liability for partial losses does not exceed costs of repair/replacement less depreciation.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.34 which of the following statements is true
1. Rates of premium for motor third party risks are fixed by the IRDA.
2. Rates of premium for motor ‘own damage’ risks are fixed by the tariff advisory committee
a) 1 is true – (true)
b) B 2is true
c) Both are true
d) Both are false
Q.35 which of the following is not a rating factor for private cars (own damage).
a) Insured’s declared value of vehicle
b) Cubic capacity
c) Passenger capacity-(true)
d) Geographical zone
Q.36 under motor package policy which of the following does not attract additional premium.
a) Personal accident covers for owner –driver-(true)
b) Electronic fittings
c) Use of cng fuel
d) Fiber glass fuel tanks
Q.37 which of the following is not eligible for discount in own damage premium (private car
package policy)
a) Vintage cars
b) Brand new cars – (true)
c) Membership of Automobile Association
d) Anti-theft devices approved by automobile research association of india
Q.38 which of the following is not a rating factor for;own damage’ cover for taxies.
a) Age of vehicle
b) Cubic capacity
c) Geographical zone
d) Insured’s declared value of vehicle-(true)
Q.39 which of the following attract additional premium under private car package policy.
a) Electronic items fitted to the vehicle (but not included in the manufacturer’s price)
b) CNG/LPG kit fitted to the vehicle
c) Fiber glass fuel tanks
d) All the above-(true)
Q.40 which of the following is not taken in to consideration for fixing rates of premium for
buses (package policy)
a) Age of vehicle
b) Licensed passenger capacity
c) Insured declared value of vehicle-(true)
d) Geographical area
Q.41 deductible under package policies applies to
a) Motorized two wheelers
b) Private cars
c) Goods vehicles
d) All three vehicles-(true)
Q.42in respect of motor third party insurance
1. No commission is payable
2. No brokerage is payable
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.43 which of the following statements is true.
1. No claim bonus is computed on the ‘own damage’ premium required for renewal of the
policy
2. When there is transfer of interest in the motor policy from one insured to another , the
transfer of no claim bonus is not automatic.
a) 1 is true
b) 2 is true
c) Both are true-(true)
d) Both are false
Q.44 which of the following documents is not required for processing private car ‘own damage
‘claims.
a) Driving license
b) Registration certificate book
c) Fitness certificate-(true)
d) Final bill from repairers
Q.45 which of the following is collected from the insured by insurer’s before the payment of
total loss.
a) Registration and taxation books
b) Lenition keys
c) Blank T.O and T.T.O from duly signed by the insured
d) All the above-(true)
Q.46 out of the following documents for ‘own damage’ motor c;laims select one which is
additionally required for commercial vehicle (goods carrier) claims.
a) Registration certificate book
b) Permit –(true)
c) Driving license
d) Police report
Q.47 which of the following does not attract additional premium under motor policies.
a) CNG/LPG fuel kit
b) Anti-theft devices-(true)
c) Fiber glass fuel tanks
d) Electronic items fitted to the vehicle but not included in manufacture’s price
Q.48 which of the following statements is true.
Motor third party premium shall be shared among all the general insurers writing motor
insurance business in proportion to gross direct premium in
•
Motor insurance business
•
All classes of general insurance business
a) 1 is true
b) 2 is true-(true)
c) Both are true
d) Both are false
Q.49 the administrator of motor third party insurance is
a) IRDA
b) GIC-(true)
c) General insurance council
d) Motor accident claims tribunal
Q.50 which of the following statements is true.
1. Motor third party (injury claims) are adjudicated by motor accident claims tribunal.
2. Motor third party (property damage claims) is adjudicated by civil courts.
a) 1 is true-(true)
b) 2 is true
c) Both are true
d) Both are false
Q.51 motor ‘no-fault’ liability claims are decided by
a) lok adalat
b) Lok nyayalaya
c) Civil court
d) Motor accident claims tribunal-(true)
Q.52 which of the following documents is required to support motor ‘no-‘liability third party
claims.
a) death certificate
b) Medical certificate
c) Police report
d) All three-(true)
CHAPTER-9
Q.1 for which of the following , full capital sum insured is not payable under personal accident
policy.
a) permanent total disablement
b) permanent partial disablement-(true)
c) loss of two limbs
d) loss of one limb and one eye
Q.2 which of the following is generally not covered under personal accident insurance.
a) permanent total disablement
b) permanent partial disablement
c) temporary total disablement
d) temporary partial disablement-(true)
Q.3 which of the following contingencies is not covered under personal accident insurance.
a) temporary total disablement
b) temporary partial disablement-(true)
c) permanent total disablemenmt
d) permanent partial disablement
Q.4 which of the following is not considered as permanent total disablement.
a) loss of both eyes
b) loss of hearing in both ears-(true)
c) paralysis
d) loss of one limb and one eye
Q.5 the amount of weekly payment for temporary total disablement under personal
accident insurance is restricted to
a) Rs.1,000/b) Rs. 2,000/c) Rs.3,000/--(true)
d) Rs. 5,000/Q6 which of the following additional benefit under personal accident insurance attract extra
premium.
•
Medical expenses-(true)
•
Expenses for carriage of dead body
•
Children’s education fund
•
Cumulativebonus
Q.7 which of the following is not excluded under personal accident insurance.
a) service in the armed forces
b) air travel in standard type of aircraft-(true)
c) suicide
d) attempted suicide
Q.8 which of the following appear as exclusions under personal accident insurance.
a) child birth or pregnancy
b) service in the armed forces
c) accident indirectly caused by insanity
d) all the above-(true)
Q.9 which of the following is true in relation to personal accident insurance.
1. the cover is on a 24- hours basis
2. the geographical area of cover is india
a) 1 is true-(true)
b) 2 is true
c) both are true
d) both are false
Q.10 which of the following occupations falls under risk group III for rating
purposes(personal accident)
a) mining engineers
b) jockeys
c) circus personel
d) all the above-(true)
Q.11 which of the following occupations does not fall under risk group I for rating purposes
(personal accident)
a) accountants
b) veterinary doctors-(true)
c) lawyers
d) bankers
Q.12 which of the following occupations does not fall under group II for rating purposes
(personal accident)
a) lorry drivers
b) motor mechanics
c) consulting architects-(true)
d) paid drivers of motor cars
Q.13 which of the following statements is true .
1. no medical examition is required for fresh cover for personal accident insurance.
2. medical examination is required for renewal of personal accident insurance.
a) 1 is true-(true)
b) 2 istrue
c) both are true
d) both are false
Q.14 which of the following statements is true.
1. personal accident cover is not granted for high sum insured which is disproportionate to
monthly salary of the insured.
2. non-earning housewives are granted personal accident cover for capital sums only.
a) 1is true
b) 2 is true
c) both are true-(true)
d) both are false
Q.15 which of the following statements is true in the relation to filght coupons on
declaration basis.
1. flight insurance coupons are issued to individuals
2. flight insurance coupons are issued to companies in respect of their employees who
travel by air frequently.
a) 1 is true
b) 2 is true
c) both are true –(true)
d) both are false
Q.16 which of the following is eligible for group personal accident insurance be granted
a) members of a registered cooperative society
b) employees of a company
c) holders of deposit certificates issued by banks
d) all the above-(true)
Q.17 under group P.A. policy ,which of the following is true .
1. cumulative bonus does not apply
2. childern’s education grant is available
a) 1 Is true –(true)
b) 2 is true
c) both are true
d) both are false
Q.18 bonus (discount) and malus (loading of premium) applies under p.a insurance under
a) individual policies
b) group policies-(true)
c) both individual and group policies
d) neither individual nor group policies
Q.19 under which of the following P.A policies long term discount is available.
a) individual policies
b) family package policies
c) group policies on government employees
d) group janata personal accident policy-(true)
Q.20 if group P.A policy cover is required when the employee is not at work and/or not on
official duty i.e .’’off –duty’’ cover the reduced premum of ________ % of the normal
premium is charged.
a) 40%
b) 50 %-(true)
c) 60 %
d) 75%
Q.21 Group P.A cover is arranged to cover only accidents to employees arising out of and In
the course of the appropriate is charged.
a) 50%
b) 60%
c) 75%-(true)
d) 80%
CHAPTER-10
Q.1 which of the following costs are payable under mediclaim policy.
a) spectacles
b) lenses
c) hearing aids
d) artificial limbs-(true)
Q.2 which of the following criteria has to be satiafied by a hospital or nursing home to be
eligible to provide treatment under mediclaim policy.
a) registration with local authorities
b) operation theatre
c) docoter and nursing staff round the clock
d) all the above-(true)
Q.3 as per mediclaim policy,
1. expenses on hospitalization for a minimum period of24 hours are admissible.
2. this time limit is not applied if the insured is discharged the same day after specific
treatment e.g. dialysis.
a) 1 is true
b) 2 is true
c) both are true –(true)
d) both are false
Q.4 relevant medical expenses incurred during the period of days after hospitalization are
treated as part of the claim.
a) 15 days
b) 30 days
c) 45 days
d) 60 days-(true)
Q.5 relevent medical expenses incurred during up to _________days prior to hospitalization
are treated as part of the claim.
a) 15 days
b) 30 days-(true)
c) 45 days
d) 60 days
Q.6 which of the following types of specific treatment are exempted from minimum 24
hours stay in a hospital.
a) chemotherapy
b) radiotherapy
c) lithotripsy
d) all the above-(true)
Q.7 which of the following statements is true.
Domiciliary hospitailization benefit does not include
•
Pre-hospitalisation treatment
•
2. Post-hospitalisation treatment
a)1 is true
b) 2 is true
c) both are true-(true)
d) both are false
Q.8 which of the following diseases is excluded under domiciliary hospitalization benefit.
a) tonsillitis-(true)
b) sinusitis
c) cataract
d) hernia
Q.9 which of the following diseases is excluded during the first year of operation of
mediclaim policy.
a) bronchitis
b) diabetes
c) hernia –(true)
d) chronic nephritis
Q.10 under mediclaim policy any diseases contracted by the insured during the first_____
days from the commencement of policy is excluded.
a) 15 days
b) 30 days-(true)
c) 45 days
d) 60 days
Q.11 which of the following diseases is not excluded during the first year of operation of
mediclaim policy.
a) epilepsy –(true)
b) cataract
c) hernia
d) piles
Q.12 which of the following is payable under mediclaim policy if necessitated due to an
accident.
a) cosmetic treatment
b) aesthetic treatment
c) plastic surgery
d) all the above-(true)
Q.13 which of the following statements is true .
1. dental treatment is excluded unless requiring hospitalization
2. expenses on vitamins and tonics are excluded unless forming part treatment
a) 1 is true
b) 2 is true
c) both are true-(true)
d) both are false
Q.14 treatment for which of the following is excluded under mediclaim policy.
a) voluntary termination of pregnancy
b) caesarian section
c) childbirth
d) all the above-(true)
Q.15 under mediclaim policy , which of the following is not covered.
a) chemotherapy
b) radiotherapy
c) naturopathy-(true)
d) cost of pacemaker
Q.16 subject to no claim , cost of medical checkup once in every _________underwriting
years is payable under mediclaim policy.
a) 2 years
b) 3 years
c) 4 years-(true)
d) 5 years
Q.17 The sum insured under mediclaim policy is increased by 5% for each claim free year
year of insurance subject to a maximum accumulation of _______________ years.
a) 3 years
b) 5 years
c) 10 years ( true)
d) 15 years
Q. 18 For which of the following diseases, medical certificate from a consulting physician is
required to be submitted along with the proposal from .
a) diabetes
b) hypertension
c) coronary insufficiency
d) all the above
Q.19 mediclaim insurance is available to persons between the ages of________.
a) 2years and 70 years
b) 2 years and75 years
c) 4 years and 80 years
d) 5 years and 80 years -(true)
Q.20 a discount in premium is allowed to a family comprising the insured and __________.
a) spouse
b) dependent children
c) dependent parents
d) all the above
Q.21 which of the following is not required in the mediclaim proposal from.
a) past diseases and details of treatment
b) average monthly income
c) income tax pan
d) all the above are required-(true)
Q.22 which of the following is true ,in relation to mediclaim proposal from.
1. the insured warrants the truth of the statements and agrees that the proposal from shall
be the basis of the contract
2. the insured consents to the insurer taking medical information from hospital / medical
practitioner who has treated the insured.
a) 1 is true
b) 2 is true
c) both are true
d) both are false
Q.23 which of the following is not included in the mediclaim proposal from.
a) prospectus
b) average monthly income
c) income tax pan
d) all the above are included(true)
Q.24 which of the following statements is true.
A group mediclaim is available to any group ,subject to the following:
•
The group has a central administration point.
•
The prescribed number of persons are coverd.
•
1 is true
•
2 is true
•
Both are true-(true)
•
Both are false
Q.25 which of the following is true under group mediclaim policy.
1. cumulative bonus is not available
2. health check –up expenses are payable
a) 1 is true-(true)
b) 2 is true
c) both are true
d) both are false
Q.26 which of the following is not available under group mediclaim policy.
a) no claim bonus
b) group discount
c) cumulative bonus
d) maternity extension
Q.27 which of the following is coverd under maternity benefit extension.
a) pre-natal expenses
b) post-natal expenses
c) expenses for voluntary medical termination of pregnancy
d) none is covered
Q.28 A waiting period of_____ months is applicable for payment of a maternity claim.
a) 8 months
b) 9 months
c) 10 months
d) 12 months
Q.29 under which of the following claims, the waiting period does not apply.
a) normal delivery
b) caesarean section
c) abdominal operation for extra uterine pregnancy
d) applies to all
Q.30 claim under maternity extension in respect of any one insured person is payable only for
a) frist child
b) first two children-(true)
c) first three children
d) first four children
Q.31 which of the following is true under maternity benefit extension.
1. option for maternity benefits has to be exercised at the inception of the policy
2. insured persons with two or more living children are not eligible for this benefit.
a)1 is true
b) 2 is true
c) both are true –(true)
d) bothare false
Q.32 which of the following is true under maternity benefit extension .
1. the benefits are admissible only if expenses are incurred in hospital/ nursing home as in
patients.
2. pre-natal and post –natal expenses are admissible if admitted in hospital/nursing home for
treat ment .
a) 1 is true
b) 2 is true
c) both are true
d) both are false
Q.33 which of the following is not payable under maternity benefit extension .
a) pre-natal expenses prior to hospitailization-(true)
b) caesarean section
c) miscarriage due to accident
d) abortion due to accident
Q.34 which of the following statements is true.
1. bonus/mallus clauses applies to individual mediclaim policy.
2. bonus/mallus clause applies to group mediclaim policy.
a) 1is true
b) 2 is true-(true)
c) both are true
d) both are false
Q.35 in relation to cancer patients aid association policy which of the following is true.
1. the premium is payable to CPAA as part of the membership fee.
2. claims are paid by CPAA.
a)1 is true-(true)
b) 2is true
c) both are true
d) both are false
Q.36 no claim is payable under CPAA policy if the insured contracts cancer within a period of
_________ days from the date of becoming a member of CPAA.
a) 15 days
b) 30 days-(true)
c) 45 days
d) 60 days
Q.37 which of the following statements is true.
1. claims under CPAA cancer policy are paid by insurers.
2. these claims and documents have to be certified by CPAA.
a) 1 is true
b) 2 is true
c) both are true-(true)
d) both are false
Q.38 the sum insured under CPAA cancer policy , is increased by _________% for each
completed year of policy in force prior to claim
a) 5%-(true)
b) 10%
c) 15%
d)20%
Q.39. which of the following is true :
Difference as to the claim or quantum there of are to be referred to.
•
.arbitration as per policy conditions
•
.Committee set up by CPAA and the insurance company
•
1 is true
•
2 is true-(true)
•
Both are true
•
Both are false
Q.40 under critical IIIness policy which of the following is not specified as critical illness.
a) cancer
b) paralysis
c) tuberculosis-(true)
d) parkinson’s disease
Q.41 claim under the ciritical IIIness policy is payable if during the policy period the insured is
found to have contracted a critical iIIness and survives such critical iIIness for at least________
days from the date of its discovery.
a) 15 days
b) 30 days (true)
c) 45 days
d) 60 days
Q.42 any criticall iillness discovered ot discoverable within ________ days of the inception date
of the inception date of the policy is not covered under this policy
a) 30 days
b) 45 days
c) 60 days
d) 90 days (true)
Q.43 Oversease Medical Policy can be granted to indian resident undertaking bona fide trips
for the following purposes.
a) Business
b) Official
c) Holiday
d) All the above purposes (true)
Q.44 Which 0f the following requisites apply for eligibility fir Overseas Medical policy iof foreign
nationals working in india for indian Employers of multi -national organization.
a) Their salary must be in indian Rupees
b) Visit abroad for official purposes
c) Visit abroad is undertaken on behalf of employer
d) All the above (true)
Q.45 Under Oversease Medical policy , extension of the4 period of insurance is automatic, for
the period not exceeding ________ days and without extra, if due to delay of public transport
services beyond the control of insured.
a) 7 days (true)
b) 15 days
c) 21 days
d) 30 days
Q.46 Which of the following is not excluded under Oversease Medical Policy.
a) Child birth
b) miscarriage
c) abortion
d) cosmetic surgery necessary as a result of a covered accident (true)
Q.47 Which of the following is not paid upto the full limit of cover under the Overseas Medical
policy.
a) physician services
b) hospital services
c) dental services for immediate reliet of dental pain only (true)
d) local emergency mediacal transportation
Q.48 Under Oversease Medical Policy (loss oof checked baggage) for which of the following
items claim is not paid.
a) binoculars
b) sun-glasses
c) antiques
d) all the abvove (true)
Q.49 Under Personal Accident section of overseas medical policy which of the following is not
covereds.
a) death
b) permanent totla disablement
c) Permanet partial disablement (true)
d) loss of eyes (s) or Limb (s)
Q.50 Under overseas medical policy, emergency purchase of replacement items is paid if there
is delay or more than ____________ hours in delievery of baggage at the destination of
outbound flight from india.
a) 6 hours
b) 12 hours (true)
c) 18 hours
d) 24 hours
Q.51 Under which of the following circumstances , loss is not payable under loss of passport
section of overseas medical policy.
a) Confiscation by customs
b) detention by police or other authority
c) nop official report from the police
d) all the above (true)
Q.52 Which of the followign are gernreal exclusions (all sections ) of overseas medical policy.
participation in
a) naval, militiary or airforece operations
b) hazardous sports
c) professionals sports events
d) all the above (true)
Q.53 The insurance under overseas medical policy does not operate beyond a period of
_______ days continuous absence (unless speciaficcally agreed by insurers )
a) 60 days
b) 90 days
c) 120 days
d) 180 days (true)
Q.54 The overseas medical policy does not provide indeminity for pre-existing medical
condition which is defined as sickness for which the inured person was treated in the preceding
________ months prior to travel
a) 3 months
b) 6 months
c) 9 months
d) 12 months (true)
Q.55 Under which of the following sections of overseas medical policy , deductible does not
apply
a) medical expenses
b) personal accident (true)
c) personal liability
d) loss fo passport
Q.56 Which of the following statements is true.
corporate frequent travelling policy is granted to
1. officials of companies registered under the companies act.
2. partners of registerede firms.
a) 1 is true
b) 2 is true
c) both are true (true)
d) both are false
Q.57 Under corporate frequent travel annual policy the duration of any one trip not to exceed
__________ days.
a) 30 days
b) 45 days
c) 60 days (true)
d) 90 days
Q. 58 Which of ther fopllowing statewments is true.
1.corporate frequent trqavellers policy is issued to individuals only.
2. the cover under this policy is subject to the insured person advising insures any materioal
change in his health condition.
a) 1 is true
b) 2 is true
c) both are true (true)
d) both are false
Q.59 Under corporate group oversease medical policy deposit premium equal to premium of at
leaset ________ days travel uner plan (world-wide travel including USA/canada )
a) 200 days
b) 300 days
c) 400 days
d) 500 days (true)
Q. 60 Under corporate group oversease medical policy employees above ________ years of
age have to submit the prescribed medical reports
a) 55 years
b) 60 years (true)
c) 65 years
d) 70 years
Q.61 Which of the following persons are not eligible for overseas employement and study
policy.
a) students prosecuting studies
b) students doing reserach
c) constructions workers temporarily posted abrad (true)
d) software engineers temporarily posted abroad
Q. 62 Which of the following is not covered under oversease employement and study policy.
a) medical expenses in india on evacuation
b) loss of checked baggage
c) delayd baggage
d) personal liability (true)
CHAPTER-11
Q.1 under public liability insurance act 1991, the owner is not liable to pay rellef in the event of
a) death of any person
b) injury to any person
c) damage to property of any person
d) injury to a workman with in meaning of workmen’s compensation act. (true)
Q.2 the amount of relief payable under public liability insurance act, 1991 for fatal accident is
a) Rs. 10,000/b) Rs. 12,500/c) Rs. 25,000/- (true)
d) Rs.50,000/Q.3 the amount of relief payable under public liability insurance
Act, 1991 for permanent total disability is
•
Rs.12,500/-
•
Rs. 25,000/- (true)
•
Rs. 50,000/-
•
Rs. 1,00,000/-
Q.4 under public liability insurance Act,1991 a company handing hazardous substance has to
insure for an amount than less than the amount _________ of the company.
a) market value of assets
b) market value of stocks
c) paid- up capital (true)
d) turnover of hazardous substances
Q.5 the maximum liability of the insurer under public liability insurance act 1991 to pay relief
to several claimants arising out of one accident shall not exceed-------------a) Rs. 2.50 crores
b) Rs. 5.00 crores (true)
c) Rs. 7.50 crores
d) Rs. 10.00 crores
Q.6 under public liability insurance Act ,1991 the aggregate liability of the insurer to pay relief
in case of more than one accident during the currency of the policy shall not exceed
a) Rs.5 crores
b) Rs.7.5 crores
c) Rs. 10.00 crores
d) Rs. 15.00 crores (true)
Q.7 which of the following liabilities is not excluded under insurance policy under public
liability insurance Act ,1991
a) provision
b) damage to property leased by the insured
c) damage to property of third party-(true)
d) fines and penalities
Q.8 which of the following is taken in to account to fix rates of premium for the policy under
public liability insurance Act, 1991.
a) limit of indemnity any one accident
b) limit of indemnity any one year
c) limit of indemnity any one year and turnover
d) limit of indemnity . any one accident and turnover-(true)
Q.9 under public liability insurance Act,1991 , application for claim for relief must be made to
the collector within ________ years of the occurrence of the accident.
a) 1 year
b) 2 year
c) 3 year
d) 5 year-(true)
Q.10 which of the following fall under industrial risks for the purpose of public liability
insurance.
a) exhibitions
b) permanent amusement parks
c) film studios
d) none of the above-(true)
Q.11 which of the following is true in relation to industrial risks public liability policy.
1. policy period means the period commencing from effective date end hour and terminating at
midnight on the expiry date as shown in the schedule of the policy
2. period of insurance means the period commencing from the retroactive date and
terminating at midnight on the expiry date as shown in the schedule of the policy.
a) only 1 is true
b) only 2 is true
c) both are true-(true)
d) both are false
Q.12 which of the following statements is true . the indemnity clause of industrial risks public
liability policy excludes
1. products liability
2. pollution liability
a) 1 is true
b) 2 is true
c) both are true-(true)
d) both are false
Q.13 under public liability policy for industrial risks , which of the following cannot be covered
at extra premium .
a) pollution
b) earth quake
c) transportation of hazardous substances
d) fines and penalties-(true)
Q.14 which of the following exclusions of industrial risks public liability policy can be covered
under a separate policy.
a) liability for pollution
b) liability of collaborator who has a technical collaboration with the insured
c) liability for injuries to employees-(true)
d) liability arising out of earth quake
Q.15 under industrial risks public liability policy which of the following ratios of any one
accident and any one year limits of indemnity are not allowed.
a) 1:2
b) 1:3
c) 1:4
d) 1:5-(true)
Q.16 under industrial risks public liability policy the compulsory excess of a specified percentage
is applied on the limit of indemnity
1. any one accident
2. any one year
a) 1 is true-(true)
b) 2is true
c) both are true
d) both are false
Q.7 which of the following is not relevant in fixing rates of premium under industrial risks public
liability policy.
a) risk group
b) type of construction of risk-(true)
c) ratio of limits of indemnity – AOA to AOY
d) turnover
Q.18 which of the following liabilityies excluded under industrial risks public liability policy can
be covered under separate policies .
a) products
b) injuries to employees
c) liability under the public liability insurance Act,1991
d) all the above-(true)
Q.19 which of the following risks falls under group Iv for rating purpose under industrial risks
public liability policy.
a) distilleries
b) match factories-(true)
c) breweries
d) biscuit factories
Q.20 which of the following extensions of cover are relevant to public liability policy for hotels
a) pollution
b) food and beverages
c) property in the custody of the insured
d) all the above-(true)
Q.21 which of the following exclusions does not apply under products liability policy.
a) pollution
b) costs of repair of a defective product-(true)
c) costs of recall ofany product
d) product gurantee
Q.22 which of the following products is charged the higst rate of premium under products
liability policy.
a) motor vehicles
b) motor vehicles tyres
c) alcoholic beverage
d) pharmaceutical products-(true)
Q.23 in which of the following proffesions , professional negligence may result in fincial losss to
the client.
a) doctors
b) medical practitioners
c) medical establishments
d) chartered accountants-(true)
Q.24 in which of the following professional indermnities there is no provision for voluntary
excess.
a) architects
b) charted accountants
c) medical establishments
d) doctors-(true)
Q.25 for which of the following professional indemnities ‘per capita’ premium in addition to
basic rates is not provided.
a) medical establishments
b) doctors-(true)
c) charted accountants
d) solicitors
Q.26 which of the following does not appear in the indemnity clause of workmen;s
compensation insurance.
a) employees state insurance Act-(true)
b) workmen’s compensation Act
c) fatal accident Act
d) common law
Q.27 which of the following statements is true.
1. compulsory excess is applicable to doctors professional indemnities
2. compulsory excessis applicable to professional indeminities for medical establishments
a) 1 is true
b) 2 is true –(true)
c) both are true
d) bothare false
Q.28 which of the following extensions is not granted under workmen’s compensation policy.
a) specified diseases in the w.c.Act
b) medical expenses
c) technical collaboration-(true)
d) contractor’s workmen
CHAPTER-12
Q.1 which of the following is taken in to account in fixing the estimated completely erected
value of the contract works under CAR policy.
a) cost of material
b) construction costs
c) freight and customs duties
d) all the above(true)
Q.2 which of the following statements is true.
1. pro-rata average is applied under CAR policy
2. pro-rata average is applied under EAR policy
a) 1 is true
b) 2 is true
c) both are true –(true)
d) both are false
Q. 3 which of the following project does not fall under contractors’ all risk policy.
a) installation of machinery(true)
b) buildings
c) tunnels
d) bridges
Q.4 under which of the following policies the sum insured is required to be current replacement
value.
a) boiler
b) machinery breakdown
c) electronic equipment
d) all the above(true)
Q.5 under marine-cum- erection policy the cover commences when the equipment
a) is loaded on the vessel
b) is discharged at the port of entry
c) is unloaded at the site of erection
d) leaves the manufacterer’s ware house(true)
Q.6 which of the following property can be insured under machinery breakdown policy.
a) electrical equipment
b) mechanical equipment
c) lifting equipment
d) all the above(true)
Q.7 which of the following is true in relation to contractors plant and machinery policy.
1. the policy is an annual policy
2. the policy covers plant and machinery at different project sites
a) 1 is true
b) 2 is true
c) both are true-(true)
d) both are false
Q.8 which of the following statements is true.
1. contractors all risks policy covers civil engineering projects
2. erection all risks policy covers machinery during erection
a) 1 is true
b) 2 is true
c) both are true-(true)
d) both are false
Q.9 which of the following is not covered under boiler and pressure plant policy.
a) damage to boiler
b) damage to surrounding property of insured
c) damage by fire(true)
d) damage to third party property
Q.10 which of the following statements is true.
1. machinery loss of profits policy is granted only if there is machinery break down policy
covering the machinery.
2. loss under machinery loss of profits is payable if the material damage under machinery break
down policy is payable.
a) 1 is true
b) 2 is true
c) both are true(true)
d) both are false
Q.11 which of the following is not included in electronic equipment insurance.
a) damage to equipment
b) damage to external data media
c) increased cost of working
d) loss of profits-(true)
CHAPTER-13
Q.1Which of the following is not covered under burglary (business premises) policy.
a) theft after forcible entry
b) damage to insured goods by burglars
c) damage to premises by burglars
d) breakage of windows by burglars-(true)
Q.2 which of the following requirements does not apply for granting cash-in –safe insurance.
a) the safe is ‘burglar-proof’
b) the safe is brand new –(true)
c) the safe is of approved make
d) the safe is of approved design
Q.3 which of the following is not payable under burglary ( business premises) policy.
a) theft by employees
b) theft by customers
c) theft by visitors
d) all the above-(true)
Q.4 under which of the policies pro-rata average is not applied .
a) cash in safe policy
b) burglary declaration policy
c) burglary floating policy
d) first loss policy-(true)
Q.5 which of the following risks is not covered at extra premium under burglary (business)
premises policy.
a) strike
b) riot
c) breakage of plate glass-(true)
d) terrorism
Q.6 which of the following losses caused by burglars is not payable under burglary (business
premises) policy.
a) damage to external doors by fire-(true)
b) damage to goods which were not stolen
c) damage furniture
d) theft of cash from safe through original key obtaind by threats of violence
Q.7 which of the following properties can be covered under all risks policy on’ agreed value’
basis.
a) watches
b) cameras
c) binoculars
d) painting-(true)
Q.8 which of the following is coverd under baggage insurance policy.
a) travelling salesman’s samples
b) travelling dealer’s stocks
c) accompanied baggage-(true)
d) unaccompanied baggage
Q.9 which of the following policies are not granted in burglary (business premises) policy.
a) first loss policy
b) reinstatement value policy-(true)
c) declaration policy
d) floating policy
Q.10 under money insurance which of these statements is correct . estimated amount of cash
in transit during the policy period
1. is the maximum amount payable for any one loss
2. is the amount on which the premium is collected
a) 1 is corrected
b) 2 is correct -(true)
c) both are correct
d) neither is correct
Q.11 Which of the following is covered under money insurance npolicy.
a) wages in transit from the bank to insured premises
b) other money in transiot from the bank to insured premises
c) money collected by outdoor employees and in transit to hte bank
d) all the above.-(true)
Q.12 Which of the following risks does not require additional premium under money in transit
policy.
a) Riot
b) Strike
c) robbery-(true)
d) terrorism
Q. 13 Which iof the following can be covered under money -in- transit policy at extra premium
1. dishonestry of persons carrying the casdh
2. loss of wages on premises during payment to employees
a) 1 only
b) 2 only
c) both can be covered -(true)
d) neither can be coverd
Q.14 under fidelity guarantees, the customers time limit for discovery of losss is not later than
_________ months after the resignation of hte dishonest employee.
a) 6
b) 12-(true)
c) 18
d) 24
Q.15 Which of the folloeing fidelity guarantee policies is usually grantede to reputable firms to
cover their entire staff.
a) floating policy
b) collective policy
c) blanket policy -(true)
d) positions policy
Q.16 Under which of the following fidelity guarantee poloicies individual amount of guarantee
is not specified.
a) collective policy
b) floating policy -(true)
c) positions policy
d) blanket policy
Q. 17 Under which ofthe followingfidelity guarantee policies per capita additional premium is
charged.
a) collective
b) floating (true)
c) positions
d) blanket
Q. 18 Which of hte following risks is excluded under television insurance policy.
a) lighting
b) riot & strike
c) theft
d) none of these -(true)
Q.19 Which of the following causes fo brekage is covered under plate glass insurance policy.
a) fire
b) explosion
c) riot
d) accident -(true)
Q.20 Which of the following is not covered under neon sign insurance policy.
a) theft
b) lightning
c) mechanical breakdown-(true)
d) external explosion
Q.21 Which of the following covers in householders package insurance is not included in
shopkee[ers package insurance.
a) personal baggage
b) television -(true)
c) fixed plae glass
d) legal liability to third parties
Q.22 Which of the following covers in shopkeepers package insurance is not included in
householders package insurance
a) fixed plate glass
b) neon sign-(true)
c) pedal cycles
d) legal liabilty to emloyees
Q.23 Under bankers blanket policies _______ are covered.
a) money and office contents
b) securities and office contents
c) only office contents
d) money and securities-(true)
Q.24 which of the following are not covered under bankers blanket policies.
a) trading losses-(true)
b) payment of raised cheque
c) dishonesty of the employee of hte bank with respect to loss of money
d) loss of securities by ire
Q.25 Which fo the following are not covewred under bankers blanket policies
a) fraud of insured employees in respect of goods hypothecated to the insured
b) payment of forged cheques
c) loss due to faulty computer programming -(true)
d) loss of the securities by burglary
Q.26 Under which of the following modes of transit jewellery is covered on all risks basis under
jewe;;er block policy
a) registeered parcel post
b) air freight
c) throught angadia
d) all the above-(true)
Q.27 Under jewellers block policy which of he ollowing property is covered against specified
risks only and not all risks basis.
a) on premises -(true)
b) in transit by air fright
c) in transit by angadia
d) in the custody of brokers
CHAPTER-14
Q.1 Which of the following risks is excluded under cattle policy.
a) earthquake
b) Flood
c) Riot and strike
d) theft-(true)
Q.2 Which of the following is not an exclusion under cattle policy.
a) Theft of the animal
b) Clandestine sale of the animal
c) Transport by air
d) Surgical operation-(true)
Q.3 Which of the following is covered by extra premium under cattle policy.
a) riot and strike
b) Surgical operations
c) Famine
d) Permanent total disability-(true)
Q.4 Under cattle policy, then claim is not payable for death due to disease ocuring within
___________ days of the commencement of the risk.
a) 7 days
b) 15 days -(true)
c) 21 days
d) 30 days
Q.5 Which of the following is covered inder sheep & goat insurance.
a) indigenous animals
b) cross- breed animals
c) exotic animals
d) all the above-(true)
Q.6 Which of the following is true in relation to sheep and goat insurance.
1.indemnity is provided on the basis of sum insured or market value whichever is less.
2. salvage value is deducted from claim amount payable.
a) 1 is true -(true)
b) 2 is true
c) both are true
d) both are false
Q.7 For which of the following features, no discount is granted for premium rates for poultry
insurances.
a) farms in rural areas -(true)
b) farms having resident veterinary doctor
c) farms having dead bird disposal system
d) farms having standard lalyout
Q.8 Which of hte following is true
1. elephants used for commercial purposes are covered
2. elephants are used for relogious purposes are covered
a) 1 is true
b) 2 is true
c) both are true-(true)
d) both are false
Q.9 Under dog insurance which of the following risks can be covered at extra premium.
a) death by accidental poisoning
b) third party liability
c) loss by theft
d) all the above-(true)
Q.10 For which of the following crops horticulture policy is not available
a) grapes
b) oranges
c) papaya-(true)
d) bananas
Q.11 For which of the following crops plantation (inputs) policy is not available
a) rubber
b) coffee-(true)
c) tea
d) sugarcane
Q.12 Under agricultural pump set policy which of the following risks is covered at extra
premium.
a) mechanical breakdown
b) electrical breakdown
c) flood-(true)
d) burglary
Q.13 Which of the following risks is excluded under salt works insurance policy.
a) storm and cyclone
b) flood
c) unseasonal rain
d) none-(true)
Q.14 Which of the following disease is excluded under hospitalisation section of tribal package
insurance.
a) tuberculosis
b) leprosy
c) cancer
d) none-(true)
Q.15 Under IRDA regulations every insurer shall underwise business in the rureal sector to the
extent of at least________ % of the total gross premium i hte first financial year.
a) 1%
b) 2%--(true)
c) 3%
d) 5%
CHAPTER - 15
Q.1 Which of the following claims have to be supported by independent medical report.
a) Personal accident
b) Cattle
c) Third party (injury)
d) All the above-(true)
Q.2 In which of the following claims the report of average adjustere is necessary.
a) Actual total loss of ship
b) Constructive total loss of ship
c) Particular average
d) General average-(true)
Q.3 which of the following is true as per the arbitration condition in fire and most
miscellaneous policies .
1. all diference in respect of a claim are to be reffered to arbiration
2. differnces regardiong amount of claim only to be paid are to be reffered to arbiration
a) 1 is true
b) 2 is true-(true)
c) both are true
d) both are true
Q.4 In respect of goods insured under marine cargo policy which are safely landed but
subsequently missing, the responsibility for the loss lies with
a) Shipping company
b) Railways
c) Road carriers
d) port trus authoritiesm-(true)