ICS05 - Engineering Insurance (Surveyor) Mock Test 09
Engineering Insurance includes Machinery Loss of Profit (MLOP), Delay in Start-Up (DOS), Machinery Breakdown (MBD), Contractors Plant and Machinery (CPM), and construction-related covers. MLOP provides protection against financial losses following machinery breakdown, including loss of profit, standing charges, and increased cost of working. DOS is also known as Advance Loss of Profits cover and protects against financial consequences of project delays. CPM protects constructional tools and equipment against external damage. Premium rates depend on machinery type, condition, working environment, maintenance, and upkeep. Policy documents contain schedules, conditions, endorsements, and other provisions. Offshore oil and gas operations involve specialized construction and installation risks requiring appropriate engineering insurance.
Q1. Which basis is also known as Contract Commenced basis?
a) Individual declaration basis
b) Turnover basis
Q2. MLOP Policy provides indemnity against which of the following?
a) Loss of net profit
b) Insured standing charges
c) Increased cost of working
d) All of the above
Q3. Information on 'Exemptions' is generally provided in which section of an insurance policy?
a) Heading
b) Preamble
c) Schedule
d) Conditions
Q4. Delay in Start-Up policy is also known as __________.
a) Machinery Loss of Profits cover
b) Advance Loss of Profits cover
c) Contractors All Risk cover
d) Contractors Plant and Machinery cover
Q5. What is covered under the construction phase of the offshore operations of Oil and Gas?
a) Vessels
b) Driving Steel Piles
c) Drilling Units and Equipment
d) Off-Shore Platform
Q6. Which of the following is not true for MBD policy?
a) It cannot be issued on first loss basis.
b) It cannot be issued with a bonus clause.
c) It can be issued on agreed value basis.
d) All are true.
Q7. Under CPM Policy, the rates and terms will depend on which of the following factors?
a) Type of machinery/Equipment and its Conditions
b) Working Environment on the Site
c) Maintenance and Upkeep System
d) All of the above
Q8. What is the main objective of CPM insurance?
a) To protect the constructional tools and equipment against all construction damage.
b) To protect the plant and machinery against all wear and tear.
c) To protect the constructional tools and equipment against all external damage.
d) To protect the under construction structure against all natural perils.
Q9. Which policy is not issued for a period of more than 12 months?
a) CAR
b) MCE
c) SCE
d) CPM
Q10. __________ is normally used when the terms of an insurance contract are to be varied, and is attached to the policy document - the two together constitute evidence of the insurance contract.
a) Proposal form
b) Cover note
c) Policy
d) Endorsement
