IC57 FIRE AND CONSEQUENTIAL LOSS INSURANCE – 01

Q1.Which problem can an assessor come across when the loss assessment of household goods and personal effects is being carried out?
 

Insured may not be able to produce proofs of values in the form of vouchers, bills, etc.

 

 The insured may manipulate the bills etc.

 

 The insured may present a worse picture of the damage than the actual damage

 

 It is not possible to professionally value household goods etc.

 

 The insured can manipulate the damages

 

Q2.What is the fundamental thing which an insurer should take care of if it wants to ensure a reasonable profit on operations of the business?
 

 Maintain a decent law of averages

 

 Expansion of the insurance base in rural areas

 

 Sound underwriting

 

 Effective marketing plan

 

 Very competitive premium

 

Q3.Which document has to be furnished to the surveyors before proceeding with the survey?
 

 Actuarial report

 

 Underwriter’s report

 

 Claim document

 

 Aadhar Card/Pan card

 

 FIR with police

 

Q4.Which of these is the odd man out?
 

 Crackers and Fireworks

 

Coir lose

 

 Hemp

 

 Glass

 

 Celluloid Goods

 

Q5.What will give a fairly clear guide to the real rate of gross profit?
 

 Gross profit earned during the last three months immediately before the date of damage

 

 Gross profit earned during the calendar year immediately before the date of damage

 

 Gross profit earned during the financial year immediately before the date of damage

 

 Average of last three years of gross profit

 

 Average of last five years of gross profit

 

Q6.The risks emerging from which of these suppliers cannot be covered?
 

 Service sector suppliers

 

 Suppliers who are abroad

 

Suppliers who carry the risky process

 

Suppliers who are from the public sector

 

 Suppliers who are in n the coastal areas

 

Q7.Which of the following option is a crucial difference between a Normal policy and an Output policy?
 

Output policy is risk-free from the point of view of insured

 

The burden upon the insured to minimize the loss in every way is extremely strict in case of an Output policy

 

 The burden upon the insured to minimize the loss in every way is extremely strict in case of a Normal policy

 

Normal policy is risk-free from the point of view of insured

 

Output policy is risk-free from the point of view of the insurer

 

Q8.An insurance company claims that the concept of VALUE has been defined under the insurance policy law as – ‘Value of a property may be defined as the worth of anything in terms of something else for which it can be exchanged either with other goods or in terms of money’. – Is this claim correct?
 

Yes, it’s correct

 

Yes, it’s correct but this has not been given in the insurance law. It is a general meaning assigned to the word

 

 No, as this is the definition for Market Price

 

 No, the definition is not clear

 

No, this definition is a vague definition. There is a different definition of value in the insurance law

 

Q9.In the Risk Inspection Report, what should be mentioned in respect of the machinery used in the process of manufacture?
 

 Details of the country and the name of the manufacturer of the machine

 

 Details of the parts used in the machine

 

 Details of the ISO certifications

 

 Details of the age and condition of the machine

 

 Details of whether the machine has ISI etc. marks

 

Q10.The surveyor himself may prepare the estimate if __.
 

 repairs are major

 

 repairs are moderate

 

 repairs are minor

 

 repairs cannot be undertaken

 

 repairs are beyond the budget

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