ICS05 - Engineering Insurance (Surveyor) Mock Test 11
Engineering Insurance covers machinery, construction projects, electronic equipment, industrial risks, and project feasibility. Machinery insurance rates depend on factors such as machinery origin, working environment, contractor experience, and operator expertise. Risk management involves identification, evaluation, control, and financing of risks. Industrial All Risk (IAR) policies have specific exclusions and optional covers, including machinery breakdown and business interruption. Electronic Equipment Insurance (EEI) provides protection against physical loss or damage to electronic equipment. Project insurance also includes Erection All Risk (EAR), Marine-cum-Erection (MCE), and Storage-cum-Erection (SCE) policies. Understanding standard turnover, terrorism extensions, project stages, policy sections, exclusions, and optional covers is important for ICS05 examination preparation.
Q1. In the CAR proposal the total S.I. is 100 Crores, and the CPM S.I. is Rs. 5 crores, at what rate will you cover CPM?
a) 0.05
b) 0.03
c) 0.1
d) 0.07
e) 11%
Q2. In Machinery Insurance, the rate and terms will depend on which of the following factors?
a) Origin of the machinery/equipment
b) Working environment on the site
c) Experience of the contractor and operators
d) All of the above
Q3. The Standard turnover/output during that period in the __________ immediately before the date of the damage which corresponds with the indemnity period.
a) 6 months
b) 12 months
c) 18 months
d) 24 months
Q4. Midterm cover against Terrorism can be granted:
a) At short period scale of rates effective from date of request
b) At pro-rata premium from date of request
c) At short period scale of rates with 15 days waiting period
d) Cannot be granted at all
Q5. If the initial study shows the project to be feasible, which of the following stages will be initiated by the company?
a) Detailed project planning
b) Call for tender
c) Award of contract
d) Land acquisition and site preparation
Q6. The Second stage of Risk management is __________, i.e., the extent to which the resources can be affected in terms of physical damage, injury, interruption, liability etc.
a) Risk control
b) Risk Financing
c) Risk evaluation
d) Risk identification
Q7. IAR Policy does not cover:
a) Plant and Machinery in open
b) Vehicles registered for general road use
c) Stocks in open
d) Movement of materials within the premises
Q8. In EEI, which of the following sections indemnifies the insured against physical loss or damage to electronic equipment due to faulty design of the equipment?
a) Section 1: Material Damage
b) Section 2: External Data Media
c) Section 3: Increased Cost of Working (ICOW)
d) All sections
Q9. Of the following which is an optional cover under Industrial All Risks Policy?
a) Machinery Breakdown Policy
b) Electronic Equipment Policy
c) Business Interruption (Machinery Breakdown)
d) Business Interruption (Fire and Special Perils)
Q10. The __________ is more popularly known in India as Storage-cum-Erection (SCE) Insurance Policy.
a) Marine-cum-Erection (MCE) Insurance Policy
b) Erection All Risk (EAR) Insurance Policy
c) Contractor's All Risk (CAR) Insurance Policy
d) Contract Works (CW) Insurance Policy
