IC56 FIRE INSURANCE CLAIMS - 11
| Q 1. The principle of indemnity has two corollary principles - subrogation and contribution. |
| a) Subrogation and contribution |
| b) Insurable interest and utmost good faith |
| c) Proximate cause and Berrima fides |
| d) Subrogation and proximate cause |
| Q2.A___has have been defined as a fact that would affect the judgment of a prudent underwriter in deciding whether to accept the risk and if so, at what rate of premium and subject to what terms and conditions. |
| a) Substantiated fact |
| b) Legal fact |
| c) Suppressed fact |
| d) Material fact |
| Q3.The District Forum, the State Commission, or the National Commission shall not admit a complainant unless it is a field within____from the date on which the cause's action has arisen. |
| a) Six months |
| b) One year |
| c) Two years |
| d) Three years |
| Q4.As per the Contract Act, 1872, both parties to the contract must have a common intention. This is Known as______. |
| a) Ab initio |
| b) Consensus ad idem |
| c) Caveat emptor |
| d) Uberima fides |
| Q5.Which of the following details is to be included in written notice? |
| a) Of the items of property damaged or destroyed |
| b) Amount of the loss or damage with reference to the value of the insured property at the time of the loss or damage, not including profit of any kind |
| c) Particulars of other insurances |
| d) All of the above |
| Q6.In case of a reinstatement value policy claim, the replacement or reinstatement work must be commenced and carried out with reasonable dispatch and in any case, must be complete within_____after the destruction/damage. |
| a) 12 months |
| b) 18 months |
| c) 24 months |
| d) 30 months |
| Q7.Which view for arriving at indemnity is that the cost of production, which is merely the sum total of the cost of labor and overheads does not really indicate the value of the finished property which is the product of the labor and materials? |
| a) Traditional view |
| b) Modern view |
| Q8. What may be related to the cause of the fire, for example, damage occasioned by the wilful act or connivance of the insured, or it may arise from a claim for items of property that did not exist or from altered invoices? |
| a) Good faith |
| b) Fraud |
| c) Honesty |
| d) Mistake |
| Q9.The term____refers to the superior qualities of the replaced machinery such as increased output, reduce consumption of power, and lower costs of maintenance. |
| a) Enhancement |
| b) Augmentation |
| c) Betterment |
| d) Advancement |
| Q10.In National Commission, claim amount payable __. |
| 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 |