ICS01 Principles and Practice of Insurance and Survey and Loss Assessment Mock Test 08
Insurance policies contain specialized provisions for customs duty, increased value, personal accident benefits, motor insurance, and consumer protection. Customs Duty and Increased Value Clauses provide additional indemnity under specified conditions, while insurers estimate future losses using historical data and actuarial assumptions. Financed vehicles are commonly covered under lease or hypothecation agreements. Personal accident insurance generally offers fixed benefits rather than indemnity-based compensation. Insurance policies begin with a preamble that establishes the contractual relationship between the insurer and the insured. Motor policies also provide limited towing and protection expenses. Consumer Forums award compensation for negligence, while criminal law defines offenses such as dacoity involving multiple offenders.
Q1. When are claims for Duty or Increased Value payable?
A. Immediately upon arrival of the cargo
B. After the goods are cleared through customs
C. After the claim under C.I.F. value insurance policy is payable
D. After submission of proof of loss
E. After submission of proof of liability for loss
Q2. What does the Customs Duty Clause indemnify the insured for?
A. Import taxes
B. Excise duties
C. Export tariffs
D. Air freight charges
E. Legal fees
Q3. What does the insurance company rely on to predict the amount of losses that will occur?
A. Historical data and individual predictions
B. Premiums collected and expenses incurred
C. The accuracy of underwriting decisions
D. The frequency of claims filed
E. Historical data and assumptions about future events
Q4. In what scenario would vehicles typically be subject to a Lease Agreement or Hypothecation (Pledged) Agreement?
A. When they are owned outright
B. When they are used for commercial purposes
C. When they are insured for less than their actual value
D. When they are involved in accidents frequently
E. When they are financed through leasing or have a loan against them
Q5. How are personal accident policies typically structured to address the challenges of indemnity?
A. As unlimited benefit policies
B. As reimbursement-based policies
C. As fixed benefit policies
D. As variable benefit policies
E. As life insurance policies
Q6. What is the purpose of the preamble or recital clause in an insurance policy?
A. To specify the perils insured under the policy
B. To outline the insurer's name and address
C. To introduce the parties to the contract and reference the premium payment
D. To list the exceptions applicable to the whole policy
E. To detail the sum insured and limits of liability
Q7. In case the vehicle is disabled by loss or damage covered by the policy, what is the maximum amount for protection, removal to the nearest repairer, and redelivery to the insured, as mentioned in the policy?
A. Rs. 1000/-
B. Rs. 2000/-
C. Rs. 1500/-
D. Rs. 500/-
E. None of the above
Q8. What rate of premium is charged for utilities located outside the compound of manufacturing premises?
A. The lowest rate of premium
B. The highest rate of premium
C. No premium is charged
D. Variable rates based on the hazard
E. Premium rates are not affected by the location of utilities
Q9. What can a Consumer Forum order if it finds negligence on the part of the opposite party?
A. Issue an order to increase the prices of goods
B. Provide compensation to the consumer for any loss or injury suffered
C. Discontinue the complaint without any action
D. Provide free goods to the opposite party
E. Direct the complainant to pay a penalty
Q10. What constitutes dacoity under Section 391 of the Indian Penal Code?
A. Theft committed by a group of five or more individuals
B. Robbery committed by five or more persons, regardless of their presence or involvement
C. Extortion committed by a large group of individuals
D. Robbery committed in a public place
E. Theft committed with the use of firearms
