IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE - 15
| Q1.Mr. Umesh has taken an add-on cover for damage caused due to the earthquake. His net claim amount is Rs. 2,00,000. Calculate the minimum deduction the insurance company will do. |
| Rs. 2000 |
| Rs. 5000 |
| Rs. 10000 |
| Rs. 1000 |
| Rs. 8000 |
| Q2.In which part of the Final Survey Report is the information regarding ‘Type of property; Construction number of story’s, physical condition, maintenance, etc.; Occupancy, etc’ is found? |
| Description of Damage |
| Description of the Risk |
| Bank Details |
| Insurable Interest |
| Circumstances and Cause of Loss |
| Q3.The Standard Turnover of a company is Rs 20,00,000 and the turnover during the previous financial year is Rs. 25,00,000. Find out how this situation is possible? |
| The situation is possible only if the company has closed its business in the previous financial year |
| This is not possible as the standard turnover cannot be more than the turnover during the previous financial year |
| The situation is possible only if there is no fire |
| This is not possible as the concepts of both the turnovers basically mean the same |
| This situation is easily possible |
| Q4.What is the ‘difference’ basis of specification in LOP policies? |
| The 'difference' basis is one of the ways to calculate the gross profit |
| 'Difference' basis is one of the methods of accepting claim liability |
| The 'difference' basis is a method of finalizing sum insured |
| The 'difference' basis is a method of finding insurance premium |
| The 'difference' basis is a combination of annual turnover and standard turnover |
| Q5.An insurer wishes to find out a measure of loss that can be used as an index of business activity. It feels that 'fixed return on assets' is the correct measure. Guide them - |
| Yes, this is the correct measure |
| Yes, this is correct if fixed assets are taken at Written Down Value (WDV) |
| This is not correct. The correct measure should have been Turnover |
| This is not correct. The correct measure should have been Gross profit |
| This is not correct. The correct measure should have been Net profit |
| Q6.The value of a building is Rs 6,00,000 and this building has been insured for Rs 3,00,000. There was a loss of Rs 1,00,000. As the sum assured is Rs 3,00,000, the amount of the claim of Rs 1,00,000 should be paid in full. Give your judgment. |
| A claim of Rs. 150000 should be paid |
| A claim of Rs 50,000 should be paid |
| The calculation is correct. Rs 1,00,000 should be paid |
| The calculation is correct only if the value of the building is Rs 800000 |
| The calculation is correct because the claim can be paid in full but not more than the loss |
| Q7.Mega Ltd., wants to protect loss affecting individual risks and suggests a general add-on. Guide - |
| Yes, a general add-on will be fine |
| No, a ‘Per Risk’ Cover is necessary |
| No, a ‘Per Situation’ Cover is necessary |
| No, a ‘Per Event’ Cover is necessary |
| No, a ‘Per-Se’ Cover is necessary |
| Q8.The term __ refers to the superior qualities of the replaced machinery such as increased output, reduced consumption of power, lower costs of maintenance, etc. due to technological progress and new research. |
| Replacement |
| Contract Value |
| Market Value |
| Betterment |
| Depreciation |
| Q9.__ is one of the components of the policy, and by means of this clause, any adjustment may be made to the pre-fire figures taken to calculate the loss. |
| Operative Clause |
| Departmental Clause |
| Material Damage Proviso |
| Standard Turnover |
| Adjustment Clause |
| Q10.What is indicated in the conclusion part of the Risk Inspection Report? |
| Probable maximum loss |
| Probable minimum loss |
| Signatures of the insured and insurers |
| Acceptance of the proposal |
| Most likely hazards and how to minimize them |