IC29 Mock Test Sample 5
General insurance claims involve claim assessment, surveyor reports, recovery procedures, and policy compliance. Claim ratio measures claims incurred against earned premium, while salvage value depends on market and condition factors. Surveyors must submit reports within prescribed timelines, and insurers may seek additional analysis if disagreements arise. Marine insurance includes concepts like CIF terms, piracy cover, carrier recovery, and consignee responsibilities. Policies such as CAR/EAR and motor insurance provide specialized protection and exclusions. Add-on covers like consumables enhance repair coverage. Proper claim documentation is essential to establish the cause, extent, and value of losses, ensuring fair settlement and effective recovery from liable third parties or carriers.
Q1. Claim ratio is:
a) Claims incurred / Earned premium
b) Premium / Claim
c) Profit / Loss
d) Commission / Claim
Q2. Salvage value is influenced by:
a) Condition, demand, location, market
b) Premium
c) Bonus
d) Commission
Q3. If surveyor fails to submit report:
a) Insurer may appoint another surveyor
b) Claim auto-approved
c) Claim auto-rejected
d) Premium refunded
Q4. Surveyor must submit report within:
a) Prescribed time from appointment
b) One year
c) Six months always
d) Three years
Q5. Insurer may differ with surveyor’s report by:
a) Reasoned written communication
b) Oral disagreement
c) Ignoring the report
d) Reinsuring the risk
Q6. Under CIF terms, insurance is arranged by:
a) Seller on behalf of buyer
b) Only buyer
c) Only customs
d) Only bank
Q7. Late notice may:
a) Result in repudiation if insurer is prejudiced
b) Always be paid
c) Always be doubled
d) Be reinsured
Q8. Which is a speculative risk?
a) Investment in shares
b) Fire at factory
c) Theft of car
d) Flood damage
Q9. Bankers Indemnity claim involves:
a) Sectional documentation
b) Only one form
c) Only DL
d) Only RC
Q10. Which is NOT part of preliminary claim scrutiny?
a) Agent’s commission paid
b) Policy in force
c) Loss within policy period
d) Insured peril
Q11. Under Bharat Sookshma Udyam Suraksha, average is:
a) Waived up to 15% under-insurance
b) Strictly applied
c) Only on buildings
d) Only on stocks
Q12. Standard exclusions in CAR/EAR include:
a) War, nuclear risk, wear and tear
b) All accidents
c) Stranding
d) Collision
Q13. CAR policy primarily covers:
a) Civil construction works during construction
b) Goods in transit
c) Theft from shop
d) Aircraft
Q14. Subrogation under motor OD means:
a) Insurer recovers from responsible third party
b) Insured only recovers
c) Driver only recovers
d) Recovery not available
Q15. Recovery from carrier (marine) should be within:
a) Prescribed time bar
b) No time limit
c) Five years
d) Ten years
Q16. Wet riser/sprinkler test damage is:
a) Covered under testing extension
b) Always excluded
c) Always paid without terms
d) Reinsured automatically
Q17. On arrival, consignee should:
a) Inspect goods and notify insurer/carrier promptly
b) Ignore damage
c) Refuse delivery always
d) Pay and forget
Q18. Consumables add-on covers:
a) Oils, coolants, nuts, bolts, grease
b) Only salvage
c) Only PA cover
d) Only TP cover
Q19. Claim documentation mainly serves to:
a) Establish cause and quantum of loss
b) Delay claim
c) Cancel policy
d) Increase sum insured
Q20. Piracy cover under ITC-Hulls is:
a) Included as named peril in modern clauses
b) Excluded always
c) Only with war cover
d) Only with strikes cover
