IC56 Mock Test Sample 3
Fire insurance policies include various technical and legal provisions related to claims, coverage, and settlement. Surveyors are mandatory for claims above specified limits and assess loss based on property type, wear and tear, and replacement cost. Policy conditions cover cancellation, reinstatement, forfeiture, and insurer rights over damaged premises. Principles like insurable interest, contribution, and independent liability guide claim distribution. Escalation clauses protect against inflation, while warranties form essential contract conditions. Insurers must act promptly and transparently, while policyholders should submit complete documentation to avoid delays. Grievance redressal is available through IRDAI, Ombudsman, and consumer forums, ensuring fair handling of disputes and claims.
Q1. ________ is subject to lesser wear and tear than light and delicate machinery.
a) Electrical installation
b) Boilers, Pipes, Pumps
c) Wood working machinery
d) Heavy machinery
Q2. The Insurance Act provides that all claims of ____________ and above require a Surveyor.
a) Rs.10,000
b) Rs.20,000
c) Rs.30,000
d) Rs.40,000
Q3. Condition 5 stipulates cancellation provisions. Insurers may terminate the policy with _______ notice.
a) 7 days
b) 15 days
c) 30 days
d) 45 days
Q4. Which of the following are grievance redressal forums for policyholders?
a) Grievance Cell of IRDA
b) Consumer Forums
c) Insurance Ombudsman
d) All of the above
Q5. Two insurers (X and Y) insure the same property.
Sum insured by X = ₹1,00,000
Sum insured by Y = ₹1,00,000
Total property value = ₹1,00,000
If total sum insured exceeds value, what is payable by each insurer?
a) X = ₹50,000, Y = ₹50,000
b) X = ₹80,000, Y = ₹1,20,000
c) X = ₹90,000, Y = ₹1,10,000
d) X = ₹50,000, Y = ₹1,50,000
Q6. Which policy can be issued for minimum sum insured of ₹2 crores?
a) Floating declaration policy
b) Floating policy
c) Declaration policy
d) Cancellation policy
Q7. A ___________ is a condition or contingency and unless performed there is no contract.
a) Representation
b) Warranty
c) Consideration
d) Underwriting
Q8. Which condition gives the insurer the right to enter and keep possession of insured premises after loss?
a) Condition 7
b) Condition 8
c) Condition 9
d) Condition 10
Q9. __________ refers to cost of replacement and not selling price (which includes profit).
a) Depreciation
b) Basis of settlement
c) Betterment
d) Reconditioning of damaged stocks
Q10. __________ and similar plant items suffer from rusting or corrosion.
a) Heavy machinery
b) Electrical installation
c) Wood working machinery
d) Boilers, Pipes, Pumps
Q11. According to Condition 8, all benefits are forfeited in which case?
a) Fraudulent claim
b) False declaration
c) Fraudulent means used
d) All of the above
Q12. Which of the following are features of Condition 9?
a) Reinstatement at insurer’s option
b) Reinstatement need not be exact but reasonably sufficient
c) Insured must provide plans and details at own cost
d) All of the above
Q13. Which of the following are roles of the insurer?
a) Timely claim action
b) Timely surveyor appointment and report
c) Clear and transparent repudiation
d) All of the above
Q14. How can policyholders minimize delays in fire insurance claims?
a) Ignoring documentation requests
b) Not communicating with insurer
c) Providing all required documents promptly
d) Cancelling the policy
Q15. Express Condition 9 in a fire policy provides for:
a) Forfeiture of benefits
b) Pro-rata average
c) Reinstatement or replacement of property
d) Contribution
Q16. __________ means the legal right to insure.
a) Consideration
b) Insurable interest
c) Underwriting
d) Indemnity
Q17. Escalation clause allows automatic increase up to:
a) 6.25%
b) 12.5%
c) 25%
d) 37.5%
Q18. Liability of each insurer determined independently is called:
a) Concurrent liability method
b) Independent liability method
c) Insured liability method
d) None of these
Q19. There is a _____________ in a contract to prevent or minimize loss even if not explicitly stated.
a) Duty of the insured
b) Contents
c) Duty of good faith
d) Common law duty on each party
Q20. Architects, Surveyors, and Consulting Engineering fees are limited to ________ of claim amount.
a) 1%
b) 2%
c) 3%
d) 4%
