Question

Consider the following statements.
I. Workmen's compensation and third party insurance are examples of guarantee insurance.
II. Re-insurance is more common under fire and marine insurance.
Which of the statement given is/are correct?

• A. I only
• B. II only
• C. Both I and II
• D. Neither I nor II

Answer 1

Answer: (C)

Both I and II

Both the statements are correct.

1. Guarantee insurance indemnifies the employer and protects against employees and third parties.

2.Insurance of Insurance companies is re-insurance, the claims are high in case of fire and marine insurance and hence, re-insurance is common under them.