GROUP IV

TRADE QUESTIONS
04/12/2007

1. Time Charter hire is

i) To charter a vehicle for a specified period

ii) To take a loan on vessel for a specified period
iii) To take a vessel on hire for a specified period
iv) To hire a vessel and pay after a specified time
2. Which of the following is not true for COGSA,1971(Carriage of
goods by sea Act)
i) It brings uniformity in condition of carriage by sea
ii) It is compulsory for ship owners to issue a B/L
iii) It is compulsory for shippers to mention particulars &
conditions of the goods
iv)The liability of the carrier is limited to 666.7 SDRs per
package per unit
3. A carrier under COGSA,1971 is liable if
i) Open or uncovered vehicle is used
ii) There is defective packing
iii) Marks or numbers are used
iv) Livestock is carried
4. What is a ‘slip’
i) A mistake in the policy
ii) A kind of dress
iii) A correction in the policy
iv) Evidence of contract of marine insurance
5. In marine insurance, the insurable interest should be there
i) At the time of issuance of policy
ii) At the time of payment of claim
iii) At the time of occurrence of loss
iv) None of the above
6. The wages of individual masters and workers are insurable in
i) W C Policy
 ii) Marine Cargo Policy
iii) Marine Hull Policy
iv) Aviation Policy

7. As per the IRDA Regulations, which of the following is

correct about Minimum Capital Required for Insurance Brokers:
i) Direct Broker Rs.50 lakhs, Re-insurance Broker Rs.100
lakhs and Composite Broker Rs.200 lakhs.
ii) Direct Broker Rs.50 lakhs, Re-insurance Broker Rs.150
lakhs and Composite Broker Rs.200 lakhs.
iii) Direct Broker Rs.50 lakhs, Re-insurance Broker Rs.150
lakhs and Composite Broker Rs.250 lakhs.
iv) Direct Broker Rs.50 lakhs, Re-insurance Broker Rs.200
lakhs and Composite Broker Rs.250 lakhs.
8. Which of the following is correct about winding up
provisions of an Insurance Company as per the Insurance Act
1938:
a.Voluntary, b.By Court, c.By Central Govt., d.By
Shareholders and
Policyholders
i) Only a, b and c.
ii) Only b, c and d.
iii) All of the above.
iv) None of the above.
9. Ministry of Finance, Government of India has emphasized for
implementation of the following for GIPSA Companies:
i) Computerization of all the offices.
ii) Core Insurance Solutions.
iii) Updation of all the systems.
iv) Extensive training to employees for computerization.
10. Which is correct sequence as per CDA Rules:
i) Investigation-Domestic Enquiry-Charge Sheet-Office
Order.
ii) Investigation- Charge Sheet- Domestic Enquiry- Order.
iii) Domestic Enquiry-Investigation-Order-Charge Sheet.
 iv) Domestic Enquiry-Charge Sheet- Investigation- Order.
11. Choose the type of leave not available to PSU General
Insurance employees:
i) Restricted Holiday.
ii) Half day casual Leave.
iii) Trekking Leave.
iv) Study Leave.
12. Which is the correct pair:
i) Statutory Audit-Continuous Audit.
ii) Internal Audit-Periodical Audit.
iii) Government Audit-Continuous Audit.
iv) None of the above.
13. As per the Statutory Requirement the following may not be
prepared for Annual Financial Results by an Insurance Company:
i) Revenue Account.
ii) Trading Account.
iii) Profit & Loss Account.
iv) Balance Sheet.
14. Which of the following terms does not relate to Re-insurance:
i) Treaty.
ii) First Loss.
iii) Facultative.
iv) Stop Loss.
15. Self Insurance may NOT be advantageous in:
i) Predicting accurately.
ii) Minimization of disputes.
iii) Grouping of risks.
iv) Saving transaction costs.
16. The objective of IRDA to De-tariff does not include
i) Encourage competition and healthy growth.
ii) Remove cross subsidies among various products.
iii) Allowing private sector to enter in the business.
iv) Make insurance products available with better prices and
conditions to the customers.
17. Which of the following is NOT an Add on cover under
Standard Fire & Special Perils Policy:
i) Earthquake.
ii) Loss of rent.
iii) Spontaneous combustion.
iv) STFI Group of perils.
18. The basis of fixing Sum-insured under a Fire Policy for
building, Plant & Machinery and Furnitures, Fixtures & Fittings is:
i) Reinstatement value or Book value.
ii) Book value or Market value.
iii) Market value or Reinstatement value.
iv) Reinstatement value or Written Down Value.
19. Under a Fire Floater Declaration Policy minimum premium to
be retained after expiry of the policy is:
i) 35% of the Provisional Premium Charged.
ii) 50% of the Provisional Premium Charged.
iii) 80% of the Provisional Premium Charged.
iv) None of the above.
20. Weekly compensation under PA Policy (Table A) shall not
exceed
a. 1%
b. 2%
c. 10%
d. 20%

21. Cash-in-Transit does not cover the loss of cash

a. Left in unattended vehicle
b. While carrying from Premises to Bank
c. While carrying from authorized centers to the Business
premises
d. While carrying from collection centers to Bank

22. Banker’s indemnity policy does not cover

a. Loss of money in the insured Premises due to Fire
b. Loss of money due to the negligence of any Employee
 c. Loss due to dishonest act of an Employee
d.Loss due to any wrongful act of the Director

23. The following claim is not payable under Burglary

a. Theft of cash by using duplicate key
b. By forcible entry
c. Both a and b are correct
d. None of the above

24. As per Marine Inland Transit Policy the Risk commences

from the time
a. The goods leave consignor’s Warehouse
b. the goods are being loaded on the vehicle
c. The goods reach the buyers warehouse
d. All the above are correct

25. Under Public Liability Act Policy the minimum limit of

Indemnity
a. Rs. 5 crores
b. Rs. 10 crores
c. Rs. 15 lakhs
d. Rs. 20 lakhs

26. Cold Storage Stock Damage cover due to Failure of Public

Electricity Supply
a. Is an add-on cover under fire Policy
b. Is not an add-on cover under Fire policy
c. Both are incorrect
d. Both are correct

27. Who can take the extension cover of Loss of Rent under
Fire Policy
a. Tenant
b. Owner of the Building
c. Both
 d. Cover not available

28. Following Peril is not covered under Machinery

Breakdown Insurance policy
a. Loss or Damage due to Electrical Short Circuit
b. Loss or Damage due to Defective Lubricant or Coolant
c. Loss or Damage due to Terrorism Act
d. Loss or Damage due to Human Error

29..what are the links generally available, in a company’s

website:
a. Our office, our people, our work
b. About us, FAQ, home
c. First page, address, details
d. None of above.

30. What do we understand by the term ‘http’:

a hypo test transmission programme
b. Hyper text transfer protocol
c. Higher text transfer provision
d.. Hard text transport promotion

31. What stands for ‘www’ generally prefixed before a website

address:
a. World wide workgroup
b. World wide web
c. World wide wan
d. World wide wall

32.Which programming language is used while designing a

website:
a. Cobol
b. Fortran
c.Html
 d.Http

33.Under the Motor Vehicles Act, a public place is

a. A place owned by a public limited company
b. A place where public meetings are held
c. A place where any member of public has a general right
of access
d. A place where the public grievances are heard

34. TPND is the common abbreviation used to denote

a. Transit, piracy and non delivery

b. Theft, piracy and non delivery
c. Theft, pilferage and non delivery
d. Transit, pilferage and non delivery

35. A proposal from the following person will not be considered

for issuance of a Professional Indemnity insurance

a. An interior decorator
b. An insurance Broker
c. A chartered accountant
d. A call centre executive

36.Under Engineering Project Insurance, the maximum

percentage of escalation that can be chosen by the insured is

a. 25% of the Sum insured

b. 25% of the reinstatement value
c. 50% of the replacement value
d. 50% of the sum insured

37.Material Damage proviso of the Business Interruption policy

states
 a.There should be in existence a material damage policy
covering the physical damage to the property for issuance
of a business interruption policy
b. The basic policy should cover loss or damage to raw
materials
c.The policy can be issued only for industrial and
manufacturing risks
d. A claim for loss or damage to the property should be
admissible under the material damage policy for a claim
to be admissible under a business interruption policy.

1. Statements a and b are correct

2. Statements a and c are correct
3. Statements band d are correct
4. Statements a and d are correct

38. Marine cargo insurance policies are

a. Strict indemnity policies
b. Pure indemnity policies
c. Commercial Indemnity Policies
d. Benefit policies

39. The excess under Standard Fire and Special perils policy is

a. 5% of the Claim amount for perils other than Act of

God perils
b. 5% of the claim amount subject to a minimum of
Rs.10000/- for claims Act of God Perils
c. 5% of the claim amount subject to a maximum of
Rs.10000/-for claims other than Act Of God Perils.
d. Rs.10000/- in respect of Act of God Perils
40.To issue a money insurance policy all the following are
required except:
i) Estimate annual turnover of cash in
transit
ii) Single carrying limit of cash in transit
iii) Premium as consideration
iv) Existence of a shop
41. Sue and Labour clause is
i)The amount and labour incurred in filing a suit
ii)Payable even after total loss is paid
iii) GA losses can be recovered under this clause
iv)The cost incurred in averting or minimizing any loss not
necessarily covered by the policy

42. Air transport operators do not have a legal liability towards

i) The general public (Third Parties)

ii) The passengers

iii) Consigners or consignees

iv) Crew and staff

43. In Aviation Insurance, what is not true of Warsaw Convention,

1929

i) It was the Ist convention to deal with the problem of conflict

between legal system of different countries

ii) It is in force in many of the countries

iii) It laid down the fundamental principles in so many legal

aspects of international travel by air
iv) None of the above

44. Which of the following is not true of The International Air

Transport Association ( IATA)

i)It was founded in 1945

ii)It seeks to promote safe, regular air travel

iii) It promotes economical air travel

iv) It is an association of governments

45. In Marine insurance, the term “Paint Brush Piracy” is used

to denote

a. A kind of piracy of the goods from the vessel

b. Piracy of paintings and brushes
c. Change of the colour of the ship to conceal its
identity and escaping with the goods on board.
d. Entry of pirates into the vessel with paints and
brushes

46. The risk of overturning is covered in respect of dumpers

under

a. Motor insurance policy

b. Motor insurance miscellaneous and special class of
vehicles
c. Machinery breakdown policy
d. Motor miscellaneous and special type of vehicles at
an additional premium
47. An insured takes a fire insurance for building and contents
and a machinery breakdown insurance policy for machineries.
A short circuit in one of the switch boards results in a spark in
the air conditioner which results in a fire damaging furnitures
in the room apart from the air conditioner. There is a valid
claim under
i. Fire policy only
ii. Machinery breakdown policy only
iii. Both the policies
iv. None of the policies

48.Penalties for leakage of confidential electronic data of

clients without the knowledge of the insured (by employees or
otherwise) can be made a subject matter of insurance under

a. Electronic Equipments policy

b. Errors and omissions policy
c. Cyber liability insurance policy
d. Directors and Officers liability policy