Questions

QuestionsEngineering Insurances1.Which one of the following is not operational cover under Engineering Insurance

a)Boiler insurance b)Machinery Breakdown Insurance c) Storage-cum Erection Insurance d) Electronic Equipment Insurance

2Following is not an annual policy strictly

a) MIb) B.P.P c) EARd) EEI

3.Under EAR/CAR POLICY installment of premium facility is allowed only,

if the period is more than

a. TEN MONTHS b. SIX MONTHS c. NINE MONTHSD. TWELVE MONTHS.

4.Incase of EAR/CAR Policy the risk commences from the

a) Date of Unloading of 1st consignment AT SITEb. DATE OF PROPOSAL c. DATE OF SHIPMENTS/DESPATCH OF PROJECT MATERIAL d) none

5.Sum Insured under MI/EEI Policy should be

a) MARKET VALUE

b. WRITTEN DOWN VALUEc. PRESENT DAY NEW REPLACEMENT VALUE d. PRESENT VALUE

6.QUESTION DELETED

7.For determining Premium Rates for a project insurance the following information is essentially required

a) Nature of the project, duration of the project, testing period duration

b) Limit of third party liability, additional custom duty to be covered, S.I. under marine cover)C) Both above

d) None of the above

8.The advanced loss of profit policy covers

a) Loss of projected profit due to interruption & delay of project, by an insured peril

b) Loss of turnover after the commencement of project

c) Loss of projected profit due to non-completion of project due to financial bankruptcyd) None of the above

9Close Proximity is applicable to a claim occurring within ---- days of policy commencement

a) THREE DAYSb) FIVE DAYSc) SEVEN DAYSd) TEN DAYS

10.Which one of the following is not underwritten in Engg. Dept.

a) CARb) EARc) IARd) CECR

11Which policy is not issued for a period of more than 12 months?

a) CARb) MCEc) SCEd) CPM

12CPM can be covered under

a) EAR or CAR policy when the value of CPM does not exceed specified limit

b) Separate policy should be taken for any CPM machinery if the Sum Insured exceeds specified limitc) both are correctd) both are incorrect

13Excess is not related to claim amount in case of claims under

a) EAR policy

b) EEI policy

c) CAR policyd) MBD policy

14Which of the following is not an add on cover under a project policy

a) Surrounding property

b) Third party liability

c) Off site storage and fabrication

d) Debris of uninsured property

15In which of the following testing is an inbuilt cover

a) CARb) CECRc) EARd) MBD

16Maximum permissible escalation under an EAR policy is

a) 25%b) 50%c) 75%d) none

17Which of the following is not a standing charge for LOP / ALOP

a) Insurance premium

b) Advertisement & publicity

c) Rent and Tenants

d) Direct Material cost

18Eng. Insurance covers except one of following , choose correct answer

a) Damage or breakdown of plant and machinery

b) Normal wear and tear

c) Legal liability for injury caused by damage or breakdown of plantd) Legal liability for damage to surround property of others caused by damage to plant and machinery

19Which of the following is operational phase policy and not construction phase policy under engineering insurance

a) Contractors All Riskb) Electronic Equipmentc) Erection All Risk

d) Marine-cum-Erection

20Machinery Loss of Profits Policy (MLOP) does not provides indemnity against which one of the following

a) Loss of net profitb) Insured standing chargesc) Increased cost of workingd) Civil engineering works

21It is advisable to cover permanent and temporary works including liability and all material at a contract work site under:

a) Standard Fire Policyb) Machinery Insurancec) BPP Policy

d) EAR Policy

22Which of the following statement is true

In the contractor all risk insurance, the excess or deductible applies separately for -------

a) Storage & construction claimsb) Maintenance period

c) Major perils claims

d) All the above

23Which of the following policy normally cover Lift Cranes, Material handling plant and equipment in the construction and project sites

a) Contractor Plant & Machinery

b) Contractor All Risk

c) Marine cum erection Policy

d) Erection All Risk

24Project Policies are

a) All risk policyb) Named Perilsc) Consequential Lossd) Agreed Value

25CPM is

a) All risk policy with inclusion of Breakdownb) All risk policy with exclusion of breakdown

c) a policy which covers Self propelled machineries on Public / Private Road

d) None of the above

26. Loss covering accidental failure Of Electricity Supply is an extension under:

a) CPM

b) CAR

c) DOS

d) MBD27. In insurance parlance DSU stands for

a) Delay in start up ( insurance)b) Derivatives stock units

c) Dead stock under insurance

d) Diluted stock undertaking.

28.The adjustment of sum insured in EAR policy is not done in respect of

a) freight and handling charges

b) custom duties

c) cost of erection

d) increase or decrease in prime cost of plant and machinery

29.Standby machinery in MBD is

a) not covered

b) covered at a discount of 50% in rate

c) discount of 75%

d) only covered when it is put to use

30. Delay in Start Up insurance cover is granted for the:-

a) New projects to the cover the loss of profits on account of any delay in start up

b) New projects to cover the loss of profits on account of insured losses and consequent delay in start up

c) Commissioned projects to cover the loss of profits on account of delay in start up after a breakdown of machinery

d) Existing projects, to cover the loss of profits of the future

31.In Erection All Risk insurance liability of the insurers commence from

a. The time of loading the machinery at the port of loading

b. The time of unloading the machinery at the port of discharge

c. The time of unloading the 1st consignment at the site of erection

d.The time of machinery leaves the warehouse of the supplier

32.In a EAR policy an indigenous made compressor covered under the policy got damaged while being shifted from storage yard to site of erection within the campus. New value of the compressor is Rs.1crore. Repair/replacement cost of parts Rs 50 Lacs. Salvage value of damaged parts Rs 2 lacs. Policy excess Rs 1 lac during storage erection. Rs 5 lacs during testing. Rs 10 lacs for act of god perils. No under insurance. Insurance company will settle the loss for

a.Rs 48 Lacs

b.Rs 47 Lacs

c.Rs 45 lacs

d.Rs 43 Lacs

33.Which of the following is not an exclusion under Contractors All Risk Insurance Policy

a.The first amount of the loss arising out of each and every occurrence shown as Excess in the Schedule;

b.Accidental loss/damage during erection of plant and machinery;

c.Normal wear and tear, gradual deterioration due to atmospheric conditions or lack of use or obsolescence or otherwise, rust, scratching of painted or polished surfaces or breakage of glass;

d.Loss or damage due to faulty design;

34 .ALOP can be issued in the name of

a.Principal, contractors, subcontractors and third parties

b.Principal, contractors and subcontractors

c.Principal & contractors

d.Principal

35Which of the following is excluded under Electronic Equipment Policy?

a) Riotb) Theftc) Consequential Lossd) Fire

36Match the followings

1. Gross profit a) net trading profit

2. Net profit b) total over head cost

3. Turnover c) net profit plus total standing charges

4. Standing charges d) total output during the financial year

a) 1-a, 2-b,3-c, 4-db) 1- c,2- d,3-b,4-ac) 1-c, 2-a,3-d,4-bd) 1-d,2-c,3-a,4-b

37.After completion of contractor all risk insurance, which policy is suitable for completed project?

a) EARb) Standard Firec) CPMd) CECR

38.Which policy covers humidity and moisture as inbuilt overages?

a) MBb) CARc) EEId) EEI and BPPI

39.Maintenance Visit Covers are available as add-on covers under which two policies?

a) CAR and BPPIb) EAR and MBc) CAR & EARd) EAR & CPM

40.Cross liability cover can be taken as add-on cover under project insurance only against

a) Third party b) Only the contractors permanent employeesc) Named employees of the principle onlyd) For all the parties named in the policy

41. Third party sum insured should not be exceeded by the following percentages

a) 15 % of total sum insuredb) 11 % of total sum insuredc) 10% of total sum insuredd) 9% of total sum insured

42. Under project insurance, which cover we can offer to the client as first loss basis?

a) Mechanical breakdownb) Faulty workmanship

c) Earthquaked) Theft and burglary

43.QUESTION DELETED

44. The basic premium under EAR policy is for period comprising-

a) Two months testing periodb) One month erection and one month testing period c) two months erection period.

d) Three months erection period including one months testing period.

45. Which policy is generally suitable for bio-medical equipments?

a) EEIb) CARc) MBd) CECR

46.) Floater option is generally available under which policy for movable machineries?

a) CPMb) BEc) EARd) EEI

47. Marine and transit risks can be an extended under which of the two engineering policies?

a) CAR and CPMb) EAR and CECRc) CAR and EARd) CAR & MB

48.Under CPM policy if insured has opted for floater cover then which loss under the same is not payable.

a) Unforeseen damage b) Sudden physical lossc) Accident cover whilst transit from one location to another location

d) Collision damage

49.Which policy is suitable for storage of potatoes under engineering departments?

a) CPMb) BEc) EARd) DOS

50. While machinery insurance covers accidental damage to machinery then MLOP indemnifies

a) Capital lossb) Loss of Gross Profitc) Only standing charges lossd) Only material damage loss

51. Time excess is related to

a) MB policyb) CAR policyc) EAR policyd) MLOP policy

52. Acts of god perils does not include

a) Riotb). Storm3. subsidenceInundation

53. Which of the following parameters are needed for installment premium collection under project insurance?

1. Entire premium to be collected 6 months before expiry of the policy

2. 1st installment more by 5% of total premium

3. Policy period should be more than 12 months

4. Interval between successive installments is minimum 3 months.

a) All b) Only 2 &3c) 3&4 d) 2,3, &4

54. Consequential loss (MLOP)will be entertained

a) When material damage claim under Machinery policy is admissible.

b) even if Claim under Material damage Policy is not admissiblec) On the basis of year ending balance sheet only, material damage not neededd) on the basis of capital loss only

55. Match the correct option

1. Boiler a) an explosion of ignited gases in the furnaces or flue of the

Boiler

2. Collapse b) an explosion arising out of chemical reaction in any plant

3. Chemical Explosion c) any fired closed vessel or a combined container piping

System in which is generated under pressure

4. Flu gas explosion d) sudden and dangerous distortion of any part of Boiler by

Bending or crushing caused by steam gas

a) 1-a, 2-b,3-c, 4-db) 1- c,2- d,3-b,4-ac) 1-b, 2-c,3-d,4-ad) 1-d,2-c,3-a,4-b

56.Sum Insured under project insurance corresponds to

a) contract price of the projectb) Estimated Complete erected value of the projectc) agreed valued) none of the above

57Which is not an exclusion in the CAR policy?

a) Loss discovered at the time of inventoryB )Loss or damage due to faulty designc) theft and burglaryd) packing materials

58CAR policy is subject to

a) Re-instatement of sum insured after payment of claim . additional prorate premium from DOL to DOEb) Re-instatement of sum insured is automatic without payment of additional premiumc) Sum Insured is reduced by the claim amountd) none of the above

59In CAR policy which of the following is true?

a) Extended maintenance is wider cover then maintenance visited coverb) Maintenance visit cover is wider than extended maintenance coverc) extended maintenance cover and maintenance visit covers are identicald) none of the above

60Statement 1..CAR policy excludes loss / damage due to faulty design Statement 2. EAR policy also excludes loss due to faulty design but shall be limited only to the item effected and shall not exclude loss to other insured items affected , answer whether

a) Statement 1 is only trueb) Statement 2 is only truec) both the statements are true

d) none of the statements are true

61Contract works policy generally given to Hydro-electric Project denotes for

a)CAR Policy b) CPM Policy c)Combination of CAR & EAR policyd) combination of CAR & CPM Policy

62Under MB Policy damage caused to

a) the immediately effected electrical part where fire has originated, is coveredb) all the electrical parts, where fire originated or reached subsequently, are covered.c) non-electrical parts only is covered.d) Both, electrical and non-electrical parts is equally covered.

63In MB policy incase of partial loss

a) reduction is made for Wear & tear and depreciationb) no reduction is made due to wear & tear & depreciation except for limited life partsc) 10 % deduction is made for wear & teard) it is left for the discretion of the surveyor.

64Sum Insured under MB policy is must be equal to

a) current new replacement valueb) replacement valuec) purchased priced) booked value

64The CPM policy is operative when the equipment are

a) at work or rest but does not cover whilst the equipment is being dismantledb) at work or at rest and also whilst the equipment is being dismantledc) at work only and whilst the equipment is being dismantledd) none of the above

65CPM policy covers following

a) loss due to electrical & mechanical breakdown or internal explosionsb) loss due to trade related experiments or overloads or similar testc) both the above are coveredd) both a) & b) are not covered

66Statement-1: A claim must first be admitted under the concurrent machinery material damage policy before a claim becomes admissible under MLOP Policy Statement-2 it is mandatory to have a concurrent Machinery material damage policy irrespective of the fact whether any claim is admitted in MB (material damage) policy before a claim becomes admissible under the MLOP policy

a) Statement-1 is only correct b) Statement-2 is only correctc) both statements are correct d) both statements are incorrect

67The maximum permitted indemnity period under MLOP policy

a) 6 months b) 12 monthsc) 18 months d) 24 months

68Sum Insured (Gross Profit) under MLOP is subject to adjustment in the policy in following manner

a) no adjustment is allowedb) upward adjustment up to 20% at the end of the policy periodc) downward adjustment of the sum insured up to 50% at the end of policy period d) none of the above

69 MLOP policy covers

a) Auditors charges towards claim computation as built in cover b) Auditors charge to wards claim computation to be Insured as separate itemc) Auditors charges cannot be coveredd) none is correct

70The interest of project financer can be insured under

a) CAR/EAR Policy b) ALOP policy only c) BOTH a) & b) d) NONE

71Annual turnover under ALOP denotes

a) Actual turnover during 12 months after the completion of the insured worksb) the turnover which would have achieved had the accident not occurred during the 12 months after the planned date of the completion of the projectc) projected turnover for 12 months after completion for the project d) none of the above

72DOS covers fire and allied perils

a) Trueb)Falsec) can be covered as additional perilsd) only fire peril is covered

73Which policy is pre-requisite for issuing Deterioration Of Stocks policy

a) MBb) BPPc) EEId) CECR

74Civil Engineering Completed Risk is a

a) named peril policyb) unnamed perils policy c) all risk policyd) tailor made policy

75Sum Insured under Deterioration Of Stocks should be on the basis of

a) value of actual stocks in cold storageb) value of stocks according to the full storing capacity of cold storagec) value of declared stocksd) Sum insured is to be decided by the insured.

76 Escalation benefit is not allowed in which of the following policy

a) MBb) BPPc) EEId) FIRE INSURANCE

77*Indemnity on total loss basis in respect of operational Engg. policy is

a) WITHOUT DEPRECIATION b) WITH DEPRECIATION c) POSSIBLE FOR AMOUNT MORE THAN S.I.d) EQUAL TO S.I. IRRESPECTIVE OF V.A.R.

78Burglary is not covered under which of the following policies?

a) EARb) EEIc) MBd) CPM

79W.C Liability is covered under EAR Policy as

a) TPLb) Cross liability c) cannot be covered d) add-on cover.

80Terrorism cover is inbuilt in case of the following Engg. policies?

a) MBb) BPPc) NONE OF THE POLICIESd) DOS

81Sum Insured under EAR Policy should be

a) reinstatement

value b) Completely Erected value of the project.c) market value d)none

82Which of the following statement is true

a) short circuiting of lighting arrester is covered under fire policyb) Short circuiting of lighting arrester is covered under MBD policy.c) cannot be covered under bothd) it is sufficient to cover lightning arrester under one policy to claim any type of loss.

83Sum Insured under CAR Policy should not include

a) site preparation costb) escalation cost c) temporary civil construction costd) all of above

84Surrounding property covers means

a) property belong to other than insuredb) property belonging to and in the custody and control of insuredc) any propertyd) none of the a, b, c

85There is a sum insured limitation for TPL cover under EAR & CAR policy due to

a) Company does not want to more than specified limit of the TPL for long term policiesb) coverage available under other policiesc) Re-Insurance arrangement are effected based on the cover available and retention capacitiesd) restriction imposed by IRDA

86Off-shore structure and equipments under construction are covered under

a) CARb) MCEc) Marine Policyd) None of the a, b, c

87The EAR Policy covers

a) faulty design without any stipulationb) loss falling under manufacturers Guarantee.c) faulty design is NOT covered but exclusion is limited to the item affected but resultant LOSS is coveredd) loss falling under contractual liability

88The CAR Policy EXCLUDES

a)Normal wear & Tear , rustingb) Penalties on A/C of insured non-fulfilment of terms of deliveryc) Both (a) & (b)d) none of the above

89Cold testing means

a) Commissioning of parts b) Testing under no load conditionc) no load testing permitting Indirect heat or feed stock usage d) testing for attaining specification requirement

90Testing under EAR Policy

a) has to be continuousb) can be utilized within broken periods viz suspension of testing periodc) can be postponed indefinitelyd)none of the above

91ALOP Policy can have number of claims under the policy

a) Any numbers of claimsb) single claimc) numbers corresponding to numbers of claims under MD policyd) none of the above

92 Which of the following machines should not be covered under MB policy

a) Stone crushersb)Air compressorc)Electric motors d) DG sets

93Depreciation on glass lined Vessels under MB policy

a) 25% per annumb) 20% per annumc) 10% per annumd) As technically assed by the surveyors

94Under BE insurance , refund of premium for standstill period is considered when the minimum stand still period is

a) 3 monthsb) 4 monthsc)1 monthsd)none of the above

95CECR policy is not suitable for following risks

a) runwaysb) bridgec) tunnelsd) completed engg. projects

96Estimated maximum loss/PML is the concept used

a) in fire Insurance onlyb) in Engineering Insurance onlyc) in ALOP policyd) as a tool of risk management

97Risk management includes

a) risk reductionb) risk avoidancec) loss minimizationd) all the above

98Mutual Aid scheme is applicable in

a) FEA programmeb) Loss control measuresc) part of risk managementd)none of the above

99 what is the minimum policy period for DOS Policy

a) 3 MONTHS b) 5 MONTHSc) 7 MONTHSd) 12 MONTHS

100Under EAR policy, premium should be collected for both erection and testing period & for additional testing period if opted

a) TRUE b) FALSEc) NOT applicable under EAR policyd) NONE

101Under DOS Policy for granting FOES ExtensionStatement-1: Machinery breakdown should be there at electricity supply station by an insured peril of MB policyStatement-2: Stand by DG set should be installed as per plant requirement of electricity

a) statement-1 is only correctb) statement-2 is only correctc) both the statements are correctd) none

102Extended Maintenance cover in project policies will be effective from

a) only after Erection is over b) concurrent with the erection coverc) only after Erection & Testing are overd) all are correct

All the best