IC29 Mock Test Sample 7
General insurance claims involve settlement procedures, liability principles, marine insurance laws, salvage management, and policy exclusions. All Risks and Jewellery insurance provide broad protection except for specified exclusions. Long-tail claims may take years to report or settle, especially in liability insurance. Marine insurance in India is governed by the Marine Insurance Act, 1963, while fire policies like SFSP cover named perils but exclude wear and tear. Concepts such as strict liability, contribution, incurred claim ratio, and debris removal are important in claims management. Proper documentation, settlement vouchers, recovery monitoring, and salvage agreements help insurers and insureds ensure transparent and efficient claim settlement.
Q1. All Risks / Jewellery insurance covers:
a) Loss or damage except excluded perils
b) Only fire
c) Only theft
d) Only burglary
Q2. Long-tail claims are characterized by:
a) Long delay between occurrence and settlement
b) Short reporting period
c) Premium increase only
d) Bonus adjustment only
Q3. Strict liability means:
a) Liability without proof of fault
b) Negligence must be proved
c) Only criminal liability
d) Only contractual liability
Q4. Settlement voucher is:
a) Document acknowledging full and final settlement
b) Premium receipt
c) FIR copy
d) Survey report
Q5. Common exclusions applicable include:
a) Cosmetic surgery, war, self-harm
b) Cancer
c) Heart attack
d) Stroke
Q6. Total loss under hull is either:
a) ATL or CTL
b) Only ATL
c) Only CTL
d) Only delay loss
Q7. Marine insurance in India is primarily governed by:
a) Marine Insurance Act, 1963
b) Fire Insurance Act
c) Motor Vehicles Act
d) Companies Act
Q8. Which is NOT a named peril under SFSP?
a) Wear and tear
b) Lightning
c) Explosion
d) Aircraft damage
Q9. Recovery management KPIs include:
a) Recovery rate and recovery time
b) Premium pricing
c) Bonus calculation
d) Salvage bonus
Q10. Salvage agreement should be:
a) Properly documented
b) Verbal only
c) Bonus based
d) Premium based
Q11. Credit insurance premium considers:
a) Buyer credit ratings and country risk
b) Only PA records
c) Only RC details
d) Only DL details
Q12. Marine liability includes:
a) Carrier and port liability
b) Hull only
c) Cargo only
d) PA only
Q13. FLOP policy wording typically follows:
a) Standard Market wording
b) Reinsurance wording only
c) Custom wording only
d) No wording
Q14. PL Industrial vs Non-Industrial differ in:
a) Hazard class and rating
b) Premium only
c) Salvage only
d) Bonus only
Q15. Power cost treatment depends on:
a) Business model and policy terms
b) Always UWE
c) Always excluded
d) Always ignored
Q16. Surveyor’s books of account:
a) Must be maintained as per IRDAI norms
b) Are optional
c) Maintained only on request
d) Linked only to premium
Q17. Contribution arises when:
a) Two or more policies cover same risk
b) Only one policy exists
c) No policy exists
d) Bonus applies
Q18. Salvage of motor total loss vehicle includes:
a) Wreckage including parts
b) Premium records
c) Bonus amount
d) Policy copy
Q19. Incurred claim ratio (ICR) is:
a) Claims incurred / earned premium
b) Premium / claim
c) Net worth ratio
d) Profit ratio
Q20. Cost of debris removal is generally:
a) Payable up to a sub-limit in fire claim
b) Fully payable without limit
c) Always excluded
d) Only ex-gratia paid
