ICS05 - Engineering Insurance (Surveyor) Mock Test 05
Engineering Insurance includes Machinery Breakdown, Machinery Breakdown with Deterioration of Stock, project insurance, and machinery-related covers. MBD policies contain specific provisions regarding minimum premium, stand-by machinery, electronic components, CNC machines, and premium adjustments. Project policies may include construction and erection works, marine cargo, third-party liability, and delay in start-up sections. Cold testing involves checking insured property under no-load conditions through mechanical, hydrostatic, or other testing methods. Boiler and pressure plant policies address risks such as collapse and dangerous distortion. EAR policies consider freight, handling charges, customs duties, erection costs, and changes in plant and machinery costs. Understanding policy sections, conditions, limits, and exclusions is essential for ICS05 preparation.
Q1. Which of the following is true regarding MBD policy?
a) Minimum premium is Rs. 250.
b) Premium rates can be rounded off.
c) Short period policies are not permitted.
d) Refund of premium for lockout period is not permitted.
Q2. Stand-by machinery in MBD is
a) Not covered
b) Covered at a discount of 50% in rate
c) Discount of 75%
d) Only covered when it is put to use
Q3. Under Section 3, the increased cost of working the insured need to select the limits in respect of which of the following?
a) Indemnity per hour
b) Expenses on transportation of materials
c) Aggregate indemnity limit during the period of insurance
d) All of the above
Q4. The __________ is a stamped document which provides evidence of the insurance contract, and therefore it must be carefully drafted and issued in the appropriate form.
a) Certificate
b) Policy
c) Diagram
d) None of the above
Q5. Which is the checking of parts and elements of insured property by mechanical, hydrostatic or other forms of testing under 'no load' conditions?
a) Hot testing
b) Cold testing
c)
d)
Q6. What shall mean the sudden and dangerous distortion of any part of a boiler or pressure plant by bending or crushing caused by steam, gas or fluid pressure whether attended by rupture or not?
a) Boiler
b) Pressure plant
c) Collapse
d) Chemical explosion
Q7. What is the minimum policy period for DOS Policy?
a) 3 MONTHS
b) 5 MONTHS
c) 7 MONTHS
d) 12 MONTHS
Q8. The adjustment of sum insured in EAR policy is not done in respect of
a) Freight and handling charges
b) Custom duties
c) Cost of erection
d) Increase or decrease in the prime cost of plant and machinery
Q9. Which of the following is false regarding MBD policy?
a) No electronic machine is covered.
b) CNC machine can be covered.
c) Any machine with more than 50% electronic parts and rest mechanical parts but bifurcation of S.I is not possible, can be covered.
d) All are true
Q10. This Section covers all of a project's construction and erection works from commencement and includes, where provided for, testing and the subsequent defects liability period.
a) Section 1A (Project Works)
b) Section 1B (Marine Cargo Insurance)
c) Third Party Liability (Section 2)
d) Delay in Start-Up (Section 3)
e) Marine Cargo (Section 4)
