IC56 FIRE INSURANCE CLAIMS – 09

Q1.In the case of total destruction of a building, it would not be appropriate to consider the market value or sale value of the building. Say whether True or False.
 

 a) True

 

 b) False

 

Q 2. The extension provides cover for Architects, Surveyors, and Consulting Engineers fees for plans and services in connection with reinstatement of building up to ___ of the adjusted loss, but this does not include any cost of preparation of the claim.
 

 a) 1%

 

 b) 3%

 

 c) 5%

 

 d) 7.5%

 

Q3.In Terrorism damage cover, the limit of indemnity under this cover shall not exceed the sum insured as defined in the policy or ____ crores at any one location, whichever is lower.
 

 a) Rs.500 crores

 

 b) Rs.1000 crores

 

 c) Rs.1500 crores

 

 d) Rs.2500 crores

 

Q4.If the Total sum insured under the policies is Less than the value at the time of loss. Then Calculate Total Loss.
 

 a) X Pays =RS.1,00,000 , Y Pays = Rs.1,50,000

 

 b) X Pays =RS.3,00,000 , Y Pays = Rs.1,50,000

 

 c) X Pays =RS.2,00,000 , Y Pays = Rs.2,50,000

 

 d) X Pays =RS.2,50,000 , Y Pays = Rs.1,50,000

 

Q5.As per condition 1 of a fire insurance policy, the policy shall be voidable in the event of___in any material particular?
 

 a) Misrepresentation

 

 b) Misdescription

 

 c) Non-disclosure

 

 d) Any of the above

 

Q6.The _____ which arises under common law ensured that insured does not recover more than the actual loss suffered by him/her.
 

 a) Consideration

 

 b) Insurable interest

 

 c) Underwriting

 

 d) Principle of indemnity

 

Q7.If the Total sum insured under the policies is Less than the value at the time of loss. Then Calculate Total Loss. In the case of Under-Insurance, Insured bears how much amount?
 

 a) Rs.10,000

 

 b) Rs.30,000

 

 c) Rs.50,000

 

 d) Rs.70,000

 

Q8.Under the principle of Contribution, Calculate the Claim payable by each Policy of Total Claim admissable
 

 a) X =Rs.15,000 , Y = Rs.5,000, Total = Rs.20,000

 

 b) X =Rs.12,000 , Y = Rs.8,000, Total = Rs.20,000

 

 c) X =Rs.7,000 , Y = Rs.14,000, Total = Rs.20,000

 

 d) X =Rs.10,000 , Y = Rs.10,000, Total = Rs.20,000

 

Q9.Explosion damage is evidenced by broken machinery, shattered glass, splintered timbers, and widely scattered debris and this is known as ___.
 

 a) Lighter damage

 

 b) Concussion damage

 

 c) Exclusion damage

 

 d) Heavier damage

 

Q10.If the building insured or containing the insured property becomes unoccupied and so remains for a period of more than __.
 

 a) 7 days

 

 b) 15 days

 

 c) 30 days

 

 d) 45 days

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