IC29 Mock Test Sample 14
General insurance claims involve claim assessment, salvage handling, under-insurance, liability, and policy conditions. Declaration policies apply average on monthly declarations, while salvage management aims to reduce the insurer’s net claim cost. Hypothecation clauses protect the interests of banks and financiers in insured assets. Health and property policies include provisions for reasonable charges, loss of rent, and repudiation procedures. Concepts such as constructive total loss, average clause, run-off cover, and occupational disease coverage are important in claim settlement. Surveyors play a key role through preliminary and final reports. Recovery accounting, RTO intimation, and compliance with Motor Vehicles Act provisions ensure proper claim administration and legal protection.
Q1. Under declaration policy, average is applied:
a) On monthly average declarations
b) Yearly only
c) Not applied at all
d) Only on machinery
Q2. Salvage management aims at:
a) Reducing net cost of claim
b) Increasing claim amount
c) Increasing premium
d) Giving bonus
Q3. Hypothecation / bank endorsement means:
a) Claim payment is subject to bank’s interest
b) No effect on claim
c) Insured alone receives claim
d) RTO pays the claim
Q4. Reasonable and customary charges refer to:
a) Usual treatment charges in that area
b) Maximum scale charges
c) Minimum rate only
d) Premium tariff
Q5. For new businesses, alternative period used is:
a) Pro-rated trading figures since commencement
b) Ignore trend
c) Next year budget
d) Last quarter only
Q6. Repudiation of health claim should be:
a) In writing with policy-based reasons
b) Oral only
c) Ex-gratia only
d) Conditional only
Q7. Add-on for “loss of rent” covers:
a) Loss of rent when building is uninhabitable
b) Rent payable to tenant
c) Agent commission
d) Property tax
Q8. Salvage in industrial fire claims includes:
a) Machinery, raw materials and finished goods
b) Premium records
c) Bonus amounts
d) Only cash
Q9. Average in FLOP applies if:
a) SI is less than adjusted GP × annual turnover
b) SI equals turnover
c) SI exceeds turnover
d) No loss occurs
Q10. Constructive total loss occurs when:
a) Repair cost exceeds insured value
b) Property fully destroyed only
c) Minor damage occurs
d) No damage exists
Q11. A surveyor’s primary duty is to:
a) Objectively assess cause and quantum of loss
b) Issue policy
c) Set premium
d) Reinsure risk
Q12. Occupational diseases listed in EC Act are:
a) Covered under WC policy
b) Excluded always
c) Reinsured only
d) Ex-gratia only
Q13. Preliminary Survey Report (PSR) is:
a) Initial observations after loss
b) Final report
c) Annual report
d) Statutory audit
Q14. Recovery from carrier under CMR is generally:
a) One year
b) Five years
c) Ten years
d) No time bar
Q15. Accounting treatment of recoveries is:
a) Credited to reduce claim cost
b) Treated as premium
c) Treated as bonus
d) Ignored
Q16. Average clause applies in case of:
a) Under-insurance
b) Over-insurance
c) Exact insurance
d) Double insurance only
Q17. RTO intimation is required when:
a) Vehicle is total loss or theft
b) Only PA claim arises
c) Only minor OD claim occurs
d) Never required
Q18. Run-off cover under PI is:
a) Cover for claims after expiry for past acts
b) No coverage
c) Renewal cover only
d) Occurrence cover only
Q19. Third-party motor liability is governed by:
a) Motor Vehicles Act
b) Fire Act
c) Consumer Act
d) RBI Act
Q20. If insurer takes salvage, claim is:
a) Settled fully and salvage realised by insurer
b) Reduced permanently
c) Treated as premium
d) Treated as bonus
