IC29 Mock Test Sample 13
General insurance claims involve salvage handling, subrogation rights, marine cargo clauses, liability protection, and claim audits. Restrictive salvage clauses prevent misuse of branded goods after disposal, while transparency in salvage sales ensures fair valuation and dispute avoidance. Marine insurance concepts such as General Average, York-Antwerp Rules, ICC clauses, and contingency policies are important for cargo and trade claims. Subrogation allows insurers to recover losses from liable third parties. Health policies may include AYUSH treatment coverage, while D&O policies provide entity-related securities claim protection. Effective claim audits, independent surveyors, and timely loss minimization measures help insurers maintain compliance, prevent leakages, and ensure efficient and fair claim settlement.
Q1. Restrictive use clauses in salvage:
a) Limit use of branded items by salvage buyers
b) Allow free use
c) Increase premium
d) Provide bonus
Q2. Solatium Fund compensates:
a) Hit-and-run victims
b) All road accidents
c) Only fire losses
d) Only theft losses
Q3. Seller’s interest / contingency policy is issued to:
a) Exporter for contingency protection
b) Insurer
c) Customs authority
d) Carrier only
Q4. If insured releases third party from liability:
a) Insurer’s claim may reduce or be repudiated
b) Claim always paid
c) Bonus given
d) Premium refunded
Q5. A “peril” in insurance refers to:
a) Cause of loss
b) Policy document
c) Premium amount
d) Profit of insurer
Q6. ICOW is recoverable up to:
a) Amount reducing gross profit loss economically
b) Unlimited amount
c) Only salvage value
d) Only survey fee
Q7. Salvage valuation is generally done by:
a) Surveyor
b) Dealer only
c) RTO only
d) Broker only
Q8. General Average means:
a) Shared sacrifice/expenditure for common safety
b) Particular loss only
c) Hull loss only
d) Cargo loss only
Q9. York-Antwerp Rules applicable are:
a) Versions incorporated in contract
b) Only 1890 rules
c) Only Indian rules
d) No rules apply
Q10. Salvage sale under MD policy may:
a) Affect FLOP rate of GP if abnormal
b) Be irrelevant always
c) Increase premium forever
d) Increase salvage permanently
Q11. AYUSH treatment cover includes:
a) Ayurveda, Yoga, Unani, Siddha and Homeopathy
b) Only allopathy
c) Only homeopathy
d) Only surgery
Q12. D&O Side C covers:
a) Securities claims against entity
b) Personal liability only
c) Reimbursement only
d) Bonus claims
Q13. Transparency in salvage disposal is important because:
a) It avoids disputes and ensures fair value
b) It increases premium
c) It provides bonus
d) It delays settlement
Q14. Loss minimisation in fire claim includes:
a) Calling fire brigade and securing premises
b) Bonus calculation
c) Premium increase
d) Ignoring damage
Q15. Claim audit aims to:
a) Confirm accuracy and detect leakages
b) Delay settlement
c) Charge insured extra
d) Increase premium
Q16. Surveyor’s relationship with insurer should be:
a) Independent and professional
b) Subordinate
c) Premium based
d) Bonus based
Q17. Survey fee is generally paid by:
a) Insurer
b) Insured
c) Reinsurer
d) Broker
Q18. “Mysterious disappearance” under burglary is:
a) Excluded
b) Fully covered
c) Paid double
d) Reinsured
Q19. Standard marine cargo clauses are:
a) ICC A, B and C
b) Fire A, B and C
c) Health clauses
d) Liability clauses
Q20. Subrogation letter authorises insurer to:
a) Pursue recovery in insured’s name
b) Cancel policy
c) Increase premium
d) Pay bonus
