ICS03 - Marine Cargo (Surveyor) Mock Test 06

Q1. The term DAF (Delivered at Frontier) is best explained in which of the following sentences?

a) The seller delivers the goods to the first carrier nominated by him and the buyer pays the cost of carriage necessary to bring the goods to the named destination.

b) The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport, not unloaded, cleared for export but not cleared for import, at the named point and place at the frontier, but before the customs border of the adjoining country.

c) The seller delivers when the goods are placed alongside the vessel at any port.

d) The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport unloaded, not cleared for export but cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country.

e) The buyer receives the goods when they are delivered at the named destination when the goods reach their godown.

Q2. "In no case shall this insurance cover loss/damage where the subject matter insured is carried by a vessel that is not ISM Code certified or whose owners do not hold an ISM Code at the time of loading the subject matter insured on board the vessel." This refers to:

a) Cargo ISM Forwarding Clause
b) Cargo ISM Endorsement
c) Pair and Set Clause
d) Machinery Replacement Clause
e) Second Hand Machinery Replacement Clause

Q3. The physical condition of a vessel is a reflection of its:

a) Maintenance
b) Age
c) Purchase Price
d) Resale Value
e) NCB obtained from insurer

Q4. Which is the prime reason for taking marine insurance by cargo owners and vessel owners?

a) Due to regulation
b) Safety
c) Business requirement
d) Mandatory by law
e) Profit making

Q5. Principle of Subrogation is explained in which section of the Marine Insurance Act, 1906?

a) Section 80
b) Section 79
c) Section 63
d) Section 54
e) Section 48

Q6. The Duration Clause of the ICC (Air), excluding sending by post, states that the cover would terminate on the expiry of how many days after unloading the subject matter?

a) 15 Days
b) 30 Days
c) 45 Days
d) 60 Days
e) 90 Days

Q7. Inland Transit Clauses A, B and C are used to provide insurance cover for shipping goods by:

a) Railway
b) Road
c) Air
d) Water
e) Both A and B are correct

Q8. M/s. ABC Company takes a marine insurance policy. The goods get damaged during transit and the insurance company settles the claim for USD 1,000. This illustrates the:

a) Principle of Utmost Good Faith
b) Principle of Insurable Interest
c) Principle of Indemnity
d) Principle of Proximate Cause
e) Principle of Subrogation and Contribution

Q9. I am exposed to the following losses: prone to losses from extremes of temperature; harsh sunlight causes deterioration in quality; extreme cold can lead to coagulation of latex; rainwater will cause discoloration. Which cargo is being described?

a) Chemicals
b) Glass
c) Machinery
d) Rubber
e) Stainless Steel

Q10. Sections 27 and 28 of the Marine Insurance Act, 1906 explain which of the following?

a) Declaration and non-declaration policy
b) Valued and un-valued policy
c) Agreed value and non-agreed value policy
d) Market value and RIV policy
e) Depreciation and Valuation policy