Insurance and Machinery Breakdown Policy

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  • Topic: Insurance, Risk, Premium-rate telephone number
  • Pages : 58 (12288 words )
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  • Published : May 27, 2013
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INDEX

DIFFICULTY PAGES

LEVEL 12 – 31

LEVEL 232 - 47

LEVEL 348 – 54

DIFFICULTY LEVEL 1 (Part A)

1) The sum insured under the Deppt of Engg Insurance is stipulated as under. a) Market value
b) Depreciated value
c) Replacement value
d) Present replacement value of equivalent new property in operational policies.  
Ans. d) Present replacement value of equivalent new property in operational policies.

2) What is the normal period of insurance in deptt of Engg Insurance. a) These are annual policies.
b) In all policies period is either 12 months or more.
c) Period is either 12 months or less.
d) In operational policies period is 12 months whereas in policies for projects it may be higher or lower.  
Ans. d) In operational policies period is 12 months whereas in policies for projects it may be higher or lower.

3) What is the sum insured in storage cum erection and contractor all risk policies. a) Market Value
b) Depreciated value
c) Estimated value on completion of erection and / or construction d) Total purchase value as estimated.

Ans. c) Estimated value on completion of erection and / or construction

4) What is difference between MB and EEI policies.
a) Both are operational policies.
b) EEI policy does not cover sabotage and terrorism which is covered under MB policy c) MB policy does not cover fire and allied perils which are covered under EEI policy. d) MB policy can be extended to cover all perils covered under EEI policy.

Ans. c) MB policy does not cover fire and allied perils which are covered under EEI policy

5) Terrorism cover is available for the policies
a) MB EEI CPM
b) DOS CAR SCE
c) SCE MB-LOP CPM
d) CAR SCE CPM EEI
 
Ans. d) CAR SCE CPM EEI

6) What is the position of coverage of profit under Engg Ins policies. a) Available under project ins policies
b) Available under operational policies.
c) Available under all policies.
d) Profit cannot normally be covered but overheads can be covered.

Ans. d) Profit cannot normally be covered but overheads can be covered.

7) What is the purpose of CPI Policy under Engg Ins
a) It is designed for insurance of equipment of projects
b) It is meant for projects-both for equipment as well as civil works. c) It is a tailor made operational cover.
d) It is suitable for both project ins as well as operational covers

Ans. b) It is meant for projects-both for equipment as well as civil works.

8) What is difference between normal cover and cover on first loss basis. In Engg Ins a) No significant difference
b) First loss is normally available for additional covers only c) Additional covers can be on normal basis as well as where no under insurance is applicable. d) The normal covers mostly are subject to under insurance whereas in additional covers there is no under insurance. e) Covers on first loss basis may or may not subject to under insurance.

Ans. d) The normal covers mostly are subject to under insurance whereas in additional covers there is no under insurance. 9) What is duration of actual testing period in erection policy a) What ever is stipulated in the schedule of the policy

b) The schedule of policy specifies maximum period.
c) The actual testing period is period commencing from the start of testing and continues till a reasonable level of load is achieved with satisfactory performance or handing over to principle which ever is earlier  subject to maximum specified d) The actual testing period is period commencing from the start of testing and continues till a reasonable level of load is achieved with satisfactory performance or handing over to the principal

Ans. c) The actual testing period is period commencing from the start of testing and continues till a reasonable level of load is achieved with satisfactory performance...
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