IC56 FIRE INSURANCE CLAIMS – 08

Q1.In order to standardize the loss computation methodology, all follow the rule of DISASTER. Say whether True or False.
 

 a) True

 

 b) False

 

Q2.The ombudsman deals with complaints in respect of personal line of insurance and is empowered to decide complaints where the value complained, does not exceed Rs.____.
 

 a) 5 lakhs

 

 b) 10 lakhs

 

 c) 15 lakhs

 

 d) 20 lakhs

 

Q3.Which of the following are Surveyor’s Primary duties?
 

 a) to investigate into the cause of loss

 

 b) to ascertain the extent of loss

 

 c) to advise the insured on loss minimization measured and protection of salvage

 

 d) All of the above

 

Q4.According to the analysis of condition 7, which of the following rights are conferred on the insurers?
 

 a) To enter, take and keep possession of the premises

 

 b) To take possession of or require to be delivered to them any insured property on the premises

 

 c) To deal with such property by way of removal, sorting, examination, etc.,

 

 d) All of the above

 

Q5.What means bursting inward or sudden collapse inwards due to external pressure?
 

 a) Explosion

 

 b) Riot

 

 c) Fire

 

 d) Implosion

 

Q 6._____, in simple terms, means the legal right to insure.
 

 a) Warranty

 

 b) Insurable Interest

 

 c) Consideration

 

 d) Regulation

 

Q7.What is the significance of Condition 15 in a fire insurance policy?
 

a) According to this condition, the policy shall be voidable in the event of misrepresentation, misdescription or non-disclosure in any material particular.

 

 b) According to this condition, any dispute or difference as to the quantum to be paid under the policy shall, independently of all other questions, be referred to arbitration

 

c) According to this condition, additional pro-rata premium is deducted from the net claim payable unless notified that he/she does not desire to reinstate the sum

 

d) According to this condition, the insurance may be terminated by the insured subject to a short period refund of premium or by the insurers with 15 days’ notice, when pro-rata refund of premium is made

 

Q8.If the stock, which is totally damaged, is replaceable :
 

a) The loss is assessed on the basis of the cost of replacement from the supplier or wholesale less usual discounts if any

 

 b) The basis of settlement will be the cost of reconditioning plus any reduction in its sales price because of reconditioned nature of the goods

 

 c) The loss is assessed on the basis on the basis of sound value and the amount of damage suffered by the goods

 

 d) The loss is assessed on the basis of sound value i.e. replacement cost from the wholesaler or manufacturer

 

Q9.The ___ of the policy may be made either before or after the occurrence of the claim, and no objection can be raised by the insurer, but notice has to be given by the insured.
 

 a) Rules of construction

 

 b) Object of construction

 

 c) Regulations of construction

 

 d) Assignment of claim proceeds

 

Q10.Under which policy, 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?
 

 a) Reinstatement value policy

 

 b) Fire insurance policy

 

 c) Life insurance policy

 

 d) General insurance

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