Que. 1 : Q1) Under the ________, the payment to be made is the cost of reinstatement of the building or the cost of replacement of the machinery to a condition equal to its condition when new.
1. a) Declaration policy
2. b) Floater policy
3. c) Reinstatement value policy
4. d) Property policy
Que. 2 : Q2) _______________is defined as the voluntary relinquishment of a known right.
1. a) Abandonment
2. b) Repudiation
3. c) Renunciation
4. d) Waiver
Que. 3 : Q3) The payment made to the insured on the basis of interim report of the surveyor is known as______________.
1. a) On account payment
2. b) Interim payment
3. c) Advance payment
4. d) Pre-payment
Que. 4 : Q4) In case of finished goods, according to the modern way,______________would provide real indemnity.
1. a) Market value of goods
2. b) Cost of production of goods
3. c) Cost of production of goods plus excise duty, if any
4. d) Market value of goods storage cost
Que. 5 : Q5) Both parties to the contract must have a common intention or should be of the same kind. Say whether True or False.
1. a) True
2. b) False