Principles of Insurance

Q.

A factory owner took a fire insurance policy for his factory without informing the insurance company that he received notice from the electricity department to get the wiring of the factory repaired. After six months of taking policy, the factory caught fire due to faulty wiring. Will the factory ower get compensation for the loss due to fire? Which principle of insurance can be related to the above passage?

1. Principle of Indemnity

2. Principle of Causa Proxima

3. Principle of Contribution

4. Principle of Utmost Good Faith

Q.

The Service Which Helps in Removing Hindrance of Risk Is:

Q.

This is the name given to the document sent by the insurer to the insured which states what has been agreed between two parties.

1. Contract

2. Form

3. Document

4. All of the above

Q.

The insured should not be allowed to make any profit by selling a damaged property or in the case of lost property being recovered. Which principle of insurance is associated with this?

1. Principle of Indemnity

2. Principle of Contribution

3. Principle of Utmost Good Faith

4. Principle of Subrogation

Q.

Which of the following is not applicable in life insurance contract?

1. Indemnity contract

2. None of the above

3. Conditional contract

4. Unilateral contract

Q.

Which principle states that it is the duty of insured to take reasonable steps to minimise the loss or damage to the insured property?

Q.

Which of the function explains the following :

After the insured is compensated for the loss or damage to the property insured by him or her then the right of ownership of such property is passed on to the insurer.

1. Insurable Interest

2. Indemnity

3. Utmost good faith

4. Subrogation

Q.

"Insured must disclose the relevant facts related to subject matter". Identify the principle highlighted?

1. Principles of indemnity.

2. Principle of utmost good faith.

3. Principle of contribution

4. Principle of subrogation.

Q.

__________________ refers to the right of the insurer to stand in the place of the insured, after a settlement of a claim, as far as the right of insured in respect of recovery from an alternative source is involved.

1. Insurable Interest

2. Indemnity

3. utmost good faith

4. Subrogation

Q.

A contract of insurance is a contract of ___________________ which is based on utmost good faith.

1. subrogation

2. utmost good faith

3. uberrimae fidei

4. none of the above

Q.

A logistic company took an accident insurance policy for all its vehicles. A truck that was carrying oranges from Nagpur to Mumbai met with an accident. Due to the accident, there was no damage to the oranges were unloaded from that truck and it was reloaded to another. Due to time wastage in unloading and reloading, the oranges got spoiled. Which principle is related to this case?

1. Principle of Utmost Good Faith

2. Principle of Subrogation

3. Principle of Indemnity

4. Principle of Causa Proxima

Q.

State True or False. Failure to make disclosure of material facts by the insured make the contract of insurance voidable at the discretion of the insurer.

1. True

2. False

Q.

Rohan's restaurant caught fire, his immediate action was to take reasonable steps to minimise the loss or damage to the insured property. Which of the principle is he abiding?

1. Principle of Utmost Good Faith

2. Principle of Indemnity

3. Principle of Mitigation

4. Principle of Contribution

Q. Distinguish between :
Marine insurance and Fire Insurance.

Q.

Mention which function explains the following:

It is the duty of the insured to take reasonable steps to minimise the loss or damage to the insured property.

1. Mitigation

2. Utmost good faith

3. Insurable Interest

4. Subrogation

Q. What is the difference between Insurance and Assurance?

Q.

What is good faith?

Q. Write short notes on the following :
Principle of subrogation.

Q. Find out the error in the following sentence, if any. If there is no error, your answer is 'E'.
By whom (A) was he helped (B) when he seriously wounded (C) by a terrorist ? (D) No Error.(E)

1. A
2. B
3. C
4. D
5. E

Q. Write short notes on the following :
Principle of utmost good faith.

Q. A lends his car to B for a drive by him only. B allows C, an expert driver, to drive the car. C drives the car with care but hits with an electronic pole. The car is damaged. Decide.

1. B is liable for the damage to A's car.
2. B is not liable for the damage to A's car as C is driving car who is expert and in ordinary circumstances car may met with accident.
3. C is driving car and hence he is directly liable for the damage to A's car.
4. None of the above

Q. Find the synonym of the underlined word.
If you never do any work, you'll only have yourself to blame when you cannot live comfortably.

1. Accountable
2. Deplore
3. Pity
4. To appreciate
5. Approve

Q. Kishan gets his factory insured against fire insurance. Some of its machinery
got damaged in a fire accident. He gets the insurance claim and gets the
damaged machinery replaced with new one. The damaged parts were taken
away by the company. Do you think it is right act of company? State the reason.

Q. "In life insurance, the insured must have the insurable interest in the life assured". In this sentence what is meant bythe insuredmust have the insurable interest in the life assured"