IC56 Mock Test Sample 9
Fire insurance claim settlement involves assessment, documentation, and adherence to policy conditions. Entities like BimaKavach assist policyholders during claim processing. Insurable interest, especially for banks, is protected through clauses like the Agreed Bank Clause. Proper documentation such as photos and repair estimates is essential for claims. Principles like indemnity ensure no profit is gained, while depreciation and obsolescence affect valuation. Surveyors are appointed within a defined timeframe to assess losses. Conditions specify timelines for claim submission and settlement. Concepts like contribution and contract price policies determine claim sharing and valuation. Maintaining accurate records and understanding policy terms are crucial for smooth claim settlement.
Q1. What role does BimaKavach play in the fire insurance claim settlement process?
a) It determines the cause of the fire
b) It assesses the value of damaged property
c) It helps policyholders in the claim settlement process
d) It provides fire prevention services
Q2. Insurable interest of a bank is recognised by the _________
a) IRDA
b) Agreed Bank Clause
c) SEBI
d) RBI
Q3. What documentation is important for supporting fire insurance claims?
a) Personal identification documents
b) Recent utility bills
c) Photographs of damage, repair receipts, contractor estimates
d) Grocery receipts
Q4. Surveyor appointment as per Insurance Act
a) Insurer decides at discretion
b) Mandatory above Rs. 20,000
c) Appointed if insured insists for neutral assessment
d) Mandatory above Rs. 50,000
Q5. What is defined as worth in exchange terms?
a) Consideration
b) Value
c) Depreciation
d) Betterment
Q6. Breach making contract voidable from inception relates to
a) Condition precedent to contract
b) Condition subsequent
c) Condition precedent to liability
d) None of these
Q7. How many kinds of value are there?
a) 1
b) 2
c) 3
d) 4
Q8. Rapid depreciation due to new machines is called
a) Wear and tear
b) Partial damage
c) Obsolescence
d) Indemnity
Q9. Reinstatement cost calculation (building damage case)
a) Rs. 60,000
b) Rs. 63,500
c) Rs. 67,500
d) Rs. 70,500
Q10. Flood can occur due to
a) Overflow of rivers
b) Bursting of mains
c) Sea water flooding
d) All of the above
Q11. Rakesh claim (underinsurance case)
a) Rs. 22,500
b) Rs. 30,000
c) Rs. 40,000
d) Rs. 25,000
Q12. Basis of settlement includes
a) Cost of raw materials
b) Consumption till loss
c) Indirect costs
d) All of the above
Q13. Crucial aspect for successful claim
a) Ignoring exclusions
b) Maintaining accurate records
c) Filing multiple claims
d) Not taking help
Q14. Sundar claim (underinsurance case)
a) Rs. 50,000
b) Rs. 60,000
c) Rs. 70,000
d) Rs. 80,000
Q15. Written claim submission under Condition 6 within
a) 15 days
b) 30 days
c) 45 days
d) 60 days
Q16. Surveyor must be appointed within
a) 12 hours
b) 36 hours
c) 48 hours
d) 72 hours
Q17. Rapid downward movement of earth is called
a) Flood
b) Landslide
c) Fire
d) Lightning
Q18. Express Condition 12 provides for
a) Contribution
b) Arbitration
c) Subrogation
d) Pro-rata average
Q19. Deductible percentage of sum insured per claim
a) 0.05%
b) 0.25%
c) 0.50%
d) 0.75%
Q20. Contract price policy applies to
a) Local goods
b) Work in progress
c) Imported goods
d) FMCG
