IC56 FIRE INSURANCE CLAIMS – 10

Q1.The insured’s fundamental duty is to observe ___ towards insurers at the time of declaring information to take insurance, when an insured peril operates, as also during the currency of the policy.
 

 a) Common law

 

 b) Content

 

 c) Good faith

 

 d) Misbehaviour

 

Q2.If the Total sum insured under the policies is Equal to the value at the time of loss. Then Calculate partial Loss.
 

 a) X Pays =RS.80,000 , Y Pays = Rs.70,000

 

 b) X Pays =RS.60,000 , Y Pays = Rs.90,000

 

 c) X Pays =RS.70,000 , Y Pays = Rs.80,000

 

 d) X Pays =RS.90,000 , Y Pays = Rs.60,000

 

Q3.Insurable interest of a bank is recognized by the ___ which is incorporated in all policies in which a bank has a partial interest and which policies are to be made out in the name of the bank and owner or mortgagor.
 

 a) IRDA

 

 b) Agreed Bank Clause

 

 c) SEBI

 

 d) RBI

 

Q4.Under the principle of Contribution, Calculate the Claim payable by each Policy of Total Claim admissible?
 

 a) X =Rs.4,000 , Y =Rs.6,000, Total =Rs.10,000

 

 b) X =Rs.6,000 , Y = Rs.4,000, Total = Rs.10,000

 

 c) X =Rs.5,000 , Y = Rs.5,000, Total = Rs.10,000

 

 d) X =Rs.3,000 , Y = Rs.7,000, Total = Rs.10,000

 

Q5.Madhav is the owner of a shop that got burnt down due to a fire. Madhav has a fire policy of Rs. 5 lakhs. Madhav reports the incident to the insurance company and makes a claim of Rs. 3,00,000 for the loss suffered. Given the context, which of the below statement is correct?
 

a) As per the provisions of the Insurance Act, the insurance company decide on its own discretion whether it needs to appoint a survey or not

 

 b) As per the provisions of the Insurance Act, the insurance company has to appoint a surveyor, since the claim amount is above Rs. 20,000

 

c) As per the provisions of the Insurance Act, the insurance company has to appoint a surveyor if the insured (Madhav in this case) insists on the appointment of a surveyor so that a neutral pension’s option is taken into consideration for claims settlement

 

 d) As per the provisions of the Insurance Act, the insurance company has to appoint a surveyor, since the claim amount is above Rs. 50,000

 

Q6.What may be defined as the worth of anything in terms of something else for which it can be exchanged either in other goods or in money?
 

 a) Consideration

 

 b) Value

 

 c) Depreciation

 

 d) Betterment

 

Q7.Under which condition in the event of a breach, renders the contract voidable from inception. Example: condition relating to misrepresentation?
 

 a) Condition precedent to the contract

 

 b) Condition subsequent of the contract

 

 c) Condition precedent of liability

 

 d) None of these

 

Q8.How many kinds of value are there?
 

 a) 1

 

 b) 2

 

 c) 3

 

 d) 4

 

Q9.Some machines have an extremely limited life because new and more efficient machines are continuously available and the ____ increases further the rate of depreciation.
 

 a) Wear and tear

 

 b) Partial damage

 

 c) Factor of obsolescence

 

 d) Indemnity

 

Q10.A building insured on 1st January 1995 on reinstatement basis for a sum insured of Rs.2,25,00. The building was partially damaged by fire on 1st February 1991. The reinstatement could not be completed until 1st June 1997 and the cost was agreed at Rs.75,000 for reinstatement of partial damage. However, the cost of reinstatement of the entire building in June 1997 was assessed at Rs.2,50,000. Calculate the average?
 

 a) Rs.60,000

 

 b) Rs.63,500

 

 c) Rs.67,500

 

 d) Rs.70,500

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