IC56 FIRE INSURANCE CLAIMS – 05

Q1.To constitute insurable interest, which of the following essentials are required?
 

 a) There must be a physical object capable of being destroyed or damaged by fire or other insured peril

 

b) This physical object must be the subject matter of insurance

 

c) The insured must have some relationship to such object recognized by law so that he stands to benefit by its safety or be prejudiced by its destruction or damage.

 

 d) All of the above

 

Q2.A ___ is an undertaking by the insured that some particular thing shall or shall not be done or that some condition shall be fulfilled whereby he affirms or negates the existence of a particular state of facts.
 

 a) Condition

 

 b) Consideration

 

 c) Underwriting

 

 d) Warranty

 

Q 3.Which of the following comes under Common law of Provisions applicable to Fire insurance contracts?
 

 a) Utmost good faith

 

 b) Insurable interest

 

 c) Common intention

 

 d) Indemnity

 

Q4.Which term is used to mean all property covered by insurance which escapes destruction or damage from the operation of an insured peril?
 

 a) Value

 

 b) Salvage

 

 c) Warranty

 

 d) Consideration

 

Q5. below are some statements related to a fire insurance claim. Identify the incorrect statement.
 

a) In case of a claim, a surveyor has to be appointed for assessing a loss/claim within 72 hours from the receipt of loss intimation from the insured

 

b) The Surveyor shall be subjected to the code of conduct laid down by the Authority while assessing the loss and shall communicate his finding to the insurer within 30 days of his / her appointment with a copy of the report being furnished to the insured if his / her son desires

 

c) The Surveyor, on receipt of the request for additional information on a report already submitted, shall furnish an additional report within three weeks of the receipt of communication from the insurer

 

d) On of the survey report or the additional survey report,as the case may be, an insurer shall within a period of 45 days offer a settlement of the claim to the insured

 

Q6.In case of a claim arising from a reinstatement value policy, there will be no deduction for which of the following?
 

 a) Wear and tear

 

 b) Depreciation

 

 c) Number of years usage

 

d) All of the above

 

Q7.Calculate the amount payable for the following?
 

 a) A= Rs.36,000 , B= Rs.40,000

 

 b) A= Rs.26,000 , B= Rs.40,000

 

 c) A= Rs.36,000 , B= Rs.35,000

 

 d) A= Rs.26,000 , B= Rs.30,000

 

Q 8. As per______, the amount of loss claimed should not include any kind of profit for the insured.
 

 a) Principle of insurable interest

 

 b) Principle of subrogation

 

 c) Principle of indemnity

 

 d) Principle of contribution

 

Q 9. All Insurance under the Fire insurance policy shall cease on the expiry of ____ from the date of fall or displacement of any building or part thereof or of the whole or any part or of any structure of which such building forms part.
 

 a) 7 days

 

 b) 15 days

 

 c) 30 days

 

 d) 45 days

 

Q10.Insurers, also observe a safeguard known as ‘close proximity. This applies to new insurance or the policy is renewed after a break and the claim occurs within, say, ____ from the date of inception of risk or date of renewal.
 

 a) 5 days

 

 b) 7 days

 

 c) 15 days

 

 d) 30 days

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