ICS05 - Engineering Insurance (Surveyor) Mock Test 12
Engineering Insurance involves risk identification, evaluation, control, and financing across construction and industrial projects. CAR policies cover construction risks subject to exclusions, while MLOP provides financial protection for loss of gross profit following insured machinery damage. Industrial All Risk policies combine fire, specified perils, machinery breakdown, boiler explosion, and related business interruption covers. Safety rules apply to hoists, lifts, revolving machinery, pressure plants, and other equipment. Risk financing is a key stage of risk management. Project policies may provide add-on covers such as surrounding property, third-party liability, and off-site storage. Risk inspections help identify and measure potential hazards, supporting effective underwriting and loss prevention.
Q1. Which is not an exclusion in the CAR policy?
a) Loss discovered at the time of inventory
b) Loss or damage due to faulty design
c) Theft and burglary
d) Packing materials
Q2. While machinery insurance covers accidental damage to machinery then MLOP indemnifies
a) Capital loss
b) Loss of Gross Profit
c) Only standing charges loss
d) Only material damage loss
Q3. Which of the following is not covered by Industrial All Risk Policy?
a) Fire and Specified Perils
b) Machinery Breakdown or Boiler Explosion
c) Business Interruption following Machinery Breakdown or Boiler Explosion
d) Business Interruption following fire or burglary
Q4. Which of the following rules are not included under Safety Rules of Plant and Machinery?
a) Rules of Hoists or Lifts
b) Rules for examining the premises
c) Rules for Revolving Machinery
d) Rules for Pressure Plant
Q5. Risk financing comes under which stage of Risk Management?
a) First stage
b) Second stage
c) Third stage
d) Fourth stage
Q6. __________ which relate to political, social or economic reasons or shortcomings in the management and errors in judgement, such risks are not insurable and do not worry the underwriters.
a) Speculative risks
b) Advanced loss of profits
c) Direct risks
d) Operational risks
Q7. Which of the following is not an add-on cover under a project policy?
a) Surrounding property
b) Third party liability
c) Off-site storage and fabrication
d) Debris of uninsured property
Q8. The Construction of __________ may be by the closing of a natural valley with a dam, or formation of artificial lake, a construction of concrete container above or below ground.
a) Bridge construction
b) Reservoirs
c) Tunneling
d) Trenching
Q9. Which of the following is false regarding Boiler Explosion Policy?
a) Boilers outside India can be insured.
b) Escalation benefit is allowed by charging 50% of the premium rate.
c) This policy cannot be issued on agreed value basis.
d) None of the above.
Q10. Risk inspections can be considered as an important tool in identification and measurement of risks. Say whether True or False.
a) TRUE
b) FALSE
