ICS03 - Marine Cargo (Surveyor) Mock Test 20

Q1. The limitation of liability of a common carrier becomes exonerated (Section 12 of the Act) if the damage, loss or deterioration of cargo, including non-delivery of cargo, happens due to which of the following?

a) Criminal act of the carrier
b) Negligence or criminal act of the common carrier or any of his servant
c) Carrying of prohibited goods or goods on which adequate tax was not properly paid
d) All of the above

Q2. Which is a specialized branch of marine insurance dealing with liabilities of various interests associated with the shipping industry and maritime trade?

a) Marine Liabilities
b) Marine Cargo Insurance
c) Marine Hull Insurance
d) Marine DSU

Q3. Which of the following are incorrect with respect to underwriting members of Lloyd's?

a) Underwriting members are elected by the Council only after the most careful examination of their financial position.
b) An average test has to be passed by each underwriting member for election.
c) On election, underwriting members have to deposit with the Council some security for underwriting liabilities.
d) The securities deposited for underwriting liabilities remain in the custody of the Council until the whole of the member's liabilities have been discharged.

Q4. A policy covering a single defined transit from one location to another is called:

a) Open Policy
b) Specific Policy
c) Closed Policy
d) Multi-Transit Policy

Q5. Which can be considered as a commercial total loss, implying that the subject matter is not destroyed or not totally lost, physically present but total loss has occurred in commercial terms?

a) Actual Total Loss
b) Constructive Total Loss
c) Partial Loss
d) None of these

Q6. Identify the wrong statement:

a) Constructive Total Loss is a total loss claim.
b) Constructive Total Loss is a loss that occurred during the course of construction.
c) Notice of abandonment is necessary for a Constructive Total Loss claim.
d) Constructive Total Loss is affected midway between Actual Total Loss and Partial Loss.

Q7. Which of the following statements about Particular Average is incorrect?

a) Particular Average is a partial loss.
b) Particular Average is a voluntary loss.
c) Under Particular Average, it is essential that the loss or damage must have been accidental and fortuitously caused by an insured peril.
d) Particular Average can take the form of loss of part of the cargo or cargo arriving in damaged condition at the destination.

Q8. What is a slip?

a) A mistake in the policy
b) A kind of dress
c) A correction in the policy
d) Evidence of contract of marine insurance

Q9. What is the nature of cover provided by the Builders' Risk Insurance Clauses?

a) Named Peril Cover
b) All Risk Cover
c) Partial Loss Cover
d) Faulty Welds Cover

Q10. Marine Policy offers:

a) Pure Indemnity
b) Strict Indemnity
c) Adequate Indemnity
d) Modified Form of Indemnity