IC29 Mock Test Sample 8
General insurance claims involve liability assessment, recovery procedures, surveyor functions, and policy compliance. Liability claim files should be complete and properly indexed for easy retrieval. Concepts such as abandonment, contributory negligence, proximate cause, and under-insurance are important in determining claim settlement. Policies like D&O Liability, EAR, FLOP, and motor OD provide coverage for specific risks and require compliance with conditions like deductibles and underlying material damage cover. Independent surveyors assess damages and estimate losses, while recovery teams handle fraud and third-party recoveries. Proper fee structures, vessel class restoration, and adherence to IRDAI guidelines ensure transparency, fairness, and efficiency in claim handling and settlement.
Q1. Liability claim file should be:
a) Complete, indexed and retrievable
b) Disorganised
c) Lost
d) Verbal only
Q2. Abandonment transfers:
a) Ownership of wreck to insurer
b) Only liability
c) Only premium
d) Only salvage rights
Q3. Contributory negligence:
a) May bar recovery in strict jurisdictions
b) Has no effect
c) Increases premium
d) Gives bonus
Q4. Testing & commissioning under EAR is:
a) Subject to limited test period
b) Unlimited
c) Excluded always
d) Only for fire
Q5. Class certificates after repair are:
a) Required to restore vessel’s class
b) Not required
c) Optional always
d) Only for passengers
Q6. Proximate cause is:
a) Dominant and effective cause of loss
b) Remote cause
c) Last cause only
d) Any cause
Q7. D&O Liability covers:
a) Personal liability of directors/officers
b) Stocks
c) Buildings
d) Vehicles
Q8. Under-insurance in FLOP leads to:
a) Average clause application
b) Excess only
c) Ex-gratia payment
d) Salvage adjustment
Q9. Independent surveyors are:
a) Externally appointed licensed professionals
b) Insurer staff
c) IRDAI staff
d) Brokers
Q10. ICOW limit clause ensures ICOW is:
a) Economically justified and limited
b) Unlimited
c) Equal to turnover
d) Equal to premium
Q11. Permanent Total Disablement (PTD) means:
a) Permanent inability to engage in occupation
b) Temporary disability
c) Partial disability
d) Minor injury
Q12. A FLOP policy requires:
a) Underlying material damage policy
b) Only proposal form
c) Only reinsurance
d) Only cover note
Q13. Excess / deductible is:
a) Borne by insured before insurer pays
b) Paid by insurer first
c) Paid to agent
d) Paid by reinsurer
Q14. Vehicle driven by unlicensed person is:
a) Excluded on OD; TP may be pay and recover
b) Fully covered
c) Ex-gratia only
d) Double covered
Q15. Recovery from insurance fraudster is through:
a) Criminal or civil action
b) Bonus adjustment
c) Premium collection
d) No action
Q16. IBNR is significant in:
a) Liability lines with long-tail claims
b) Property lines only
c) Motor only
d) Health only
Q17. Insurer’s recovery wing is:
a) Specialized recovery team
b) Marketing team
c) Premium department
d) Bonus department
Q18. D&O “Side B” covers:
a) Company reimbursement of indemnification
b) Director’s direct cover only
c) Stocks
d) Reinsurance
Q19. The fee structure should be:
a) Reasonable and transparent
b) Excessive
c) Hidden
d) Bonus based
Q20. In motor OD survey, surveyor:
a) Assesses vehicle damage and repair cost
b) Issues policy
c) Sets premium
d) Reinsures vehicle
