IC56 FIRE INSURANCE CLAIMS – 01

Q1.The term ____ would include wearing apparel, books, cameras, musical instruments, etc.,
 

 a) Household goods

 

 b) Personal effects

 

 c) Finished goods

 

Q2.If the loss is proximately caused by an ____, there is no liability under the policy.
 

 a) Insured perils

 

 b) Excluded perils

 

 c) Both of the above

 

 d) None of these

 

Q3. ___ is a corollary of the principle of indemnity and is designed to prevent the insured from recovering more than the total amount of his/her loss/
 

a) Escalation clause

 

 b) Value of salvage

 

 c) Subrogation

 

 d) Contribution

 

Q4.The extent of indemnity is subject to which of the following limitation?
 

Value of the subject matter of the insurance affected

 

The sum insured under the policy for the affected item

 

Only A

 

Both a and b

 

Q5.Condition 6 provides
​_

 a) Forfeiture of policy benefits

 

 b) Re-instatement of replacement of property

 

 c) Pro-rata Average

 

 d) Notification of loss

 

Q6.In the District forum, the claim amount payable is less than __.
 

a) Rs.5 lakhs

 

b) Rs.10 lakhs

 

c) More than Rs.5 lakhs but less than Rs.20 lakhs

 

d) Exceeds Rs.20 lakhs

 

Q7.Which of the below property is covered under-declaration policy?
 

 a) Building

 

 b) Stocks

 

 c) Furniture

 

 d) Fixtures and fittings

 

Q8.During a claim investigation, the surveyor may conduct a chemical analysis to establish that the fire was a slow process of___.
 

 a) Fermentation

 

 b) Pigmentation

 

 c) Oxidation

 

 d) Corrosion

 

Q9.When Fire insurance contract is considered as a valid one?
 

 a) First premium is not paid

 

 b) The person is under 18 years of age

 

 c) Both parties of the contract should be of different ideas

 

d) Both parties of the contract should have a common intention

 

Q10.Which proviso relates to the pro-rata average and there is a difference in the application of the condition of average under the ordinary policy and the condition of average as applied under this proviso?
 

 a) Proviso 1

 

 b) Proviso 2

 

 c) Proviso 3

 

 d) Proviso 4

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