IC29 Mock Test Sample 18
General insurance claims involve policy extensions, deductibles, sub-limits, salvage valuation, and recovery rights. Extended Reporting Periods (ERP) allow reporting of claims after policy expiry for acts committed during the policy term. Claim analytics improve fraud detection, operational efficiency, and turnaround time. Health insurance policies commonly include waiting periods, ambulance charge limits, and hospitalisation conditions. In engineering and liability policies, clauses like cross liability and ALOP define coverage scope and indemnity periods. TPAs assist in claim servicing but do not issue policies or decide premiums. Proper document retention, salvage assessment, and application of average clauses are essential for transparent and accurate claim settlement processes.
Q1. Extended Reporting Period (ERP) allows:
a) Reporting claims after policy expiry for prior acts
b) New occurrences after expiry
c) Cancellation only
d) Renewal only
Q2. Claim analytics help in:
a) Detecting fraud and improving TAT
b) Increasing premium
c) Avoiding settlement
d) Cancelling policies
Q3. Ambulance charges in health claims are:
a) Covered up to a sub-limit
b) Unlimited
c) Not covered
d) Only for OPD
Q4. IIISLA examinations cover:
a) Various insurance survey categories
b) No examinations
c) Only fire insurance
d) Only marine insurance
Q5. Excess/deductible is applied:
a) On each claim unless stated otherwise
b) Only at inception
c) Only at renewal
d) Never applied
Q6. Recovery from contractors is for:
a) Damage caused by their negligence
b) Premium recovery
c) Bonus recovery
d) Recovery from insured
Q7. Settlement authority means:
a) Limits given to defence counsel by insurer
b) Premium amount
c) Salvage value
d) Bonus authority
Q8. Minimum hospitalisation duration is generally:
a) 24 consecutive hours except day care
b) 1 hour
c) 12 hours
d) 48 hours
Q9. Cross liability clause in CAR provides:
a) Each insured treated separately
b) Single insured only
c) No insured cover
d) Only PA cover
Q10. Permanent total disablement in PA means:
a) Absolute and irrecoverable inability to work
b) Temporary disability
c) Minor injury
d) Hospital stay only
Q11. Initial waiting period for fresh policies is commonly:
a) 30 days excluding accidents
b) 60 days
c) 90 days
d) 1 year
Q12. Lorry Receipt (LR) is used in:
a) Road transport cargo
b) Rail cargo
c) Air cargo
d) Sea cargo
Q13. TPA’s role excludes:
a) Issuing policy or deciding premium
b) Claim processing
c) Network management
d) Customer helpline
Q14. Liability subrogation refers to:
a) Limited recovery from responsible third parties
b) Full automatic recovery
c) Denied recovery always
d) Premium recovery
Q15. Average clause applies in burglary policy when:
a) Sum insured is less than stock value
b) Sum insured equals stock value
c) Sum insured exceeds value
d) No stock exists
Q16. ALOP indemnity period means:
a) Time required to make up delay in start-up
b) Construction period only
c) Maintenance period
d) Premium period
Q17. Motor claim documents should generally be preserved for:
a) 8–10 years as per retention policy
b) 1 day
c) 6 months
d) Forever
Q18. Sub-limit means:
a) Lower limit for specific expenses within overall cover
b) Premium discount
c) Bonus payment
d) Reinsurance limit
Q19. Salvage value is determined by:
a) Market value of damaged property
b) Premium amount
c) Bonus amount
d) Customs duty
Q20. Bharat Sookshma Udyam Suraksha covers:
a) Micro enterprises up to Rs 5 crore SI
b) Mega projects
c) Ships only
d) Aircraft only
