CHAPTER – 1

Test Yourself 1
The principle of subrogation and principle of contribution are corrolories to
which principle of insurance?
I Principle of proximate cause
II Principle of utmost good faith
III Principle of insurable interest
IV Principle of indemnity

Test Yourself 2
Damage to the stocks in cold storage premises is:
I Generally always excluded from fire policy
II Generally included in fire policy
III Generally excluded in fire policy but may be covered by endorsement under
"add-ons"
IV Is included in fire policy only if the cold storge has fire-privention facilities

Answers to Test Yourself

Answer 1
The correct option is IV.
The principle of subrogation and principle of contribution are corrolories to
principle of indemnity
Answer 2
The correct option is III.
Damage to the stocks in cold storage premises is generally excluded but may be
covered by endorsement under "add-ons".
Self-Examination Questions
Question 1
Which one of the following principle is a corollary of the principle of indemnity?
I Principle of subrogation
II Principle of insurable interest
III Principle of utmost good faith
IV Principle of proximate cause
Question 2
Which principle of insurance gives legal validity to insurance contracts?
I Principle of contribution
II Principle of insurable interest
III Principle of utmost good faith
IV Principle of proximate cause
Question 3
Mr. X has a value of property of Rs 1,00,000. Sum insured is Rs. 75,000. Loss
incurred due to fire is Rs. 35,000.
Determine the amount of claim payable under a fire insurance contract.
I Rs. 26,250
II Rs. 35,000
III Rs. 46,667
IV Rs. 75,000

Question 4
The sum insured in a fire insurance contract can be fixed on:
I Cost of asset
II Reinstatement value
III Nominal value
IV Rateable value
Answers to Self-Examination Questions
Answer 1
The correct option is I.
The principle of subrogation is a corollary of the principle of indemnity. If the
loss suffered by the insured is recoverable from third parties who are
responsible for the loss, the insured’s rights of recovery are transferred or
subrogated to the insurers when they indemnify the loss.
Answer 2
The correct option is II.
The requirement of insurable interest gives legal validity to insurance contracts
and distinguishes them from mere wagers. Insurable interest may be defined as
the legal right to insure which right arises out of a pecuniary relationship
between the insured and the subject matter of insurance whereby destruction
or damage to the latter involves the insured in financial loss
Answer 3
The correct option is I.
According to the pro-rata average condition, Rs. 75,000 / Rs. 100,000 x Rs.
35,000 = Rs. 26,250.
Answer 4
The correct option is II.
The sum insured can be fixed on reinstatement value or market value, or agreed
value.

CHAPTER – 2
Test Yourself 1
Which of the following policy clause provides cover for accidental leakage and
contamination of oils and chemicals?
I. Temporary removal of stocks clause
II. Debris Removal clause
III. Spoilage Material Damage clause
IV. Leakage and Contamination clause

Test Yourself 2
Reinstatement Value Policy may be extended to cover additional cost of
reinstatement incurred by the insured to comply with regulations enforced by
Authorities by incorporating which of the following clause in the policy?
I. Escalation clause
II. RIV clause
III. Local Authorities clause
IV. Debris Removal clause

Test Yourself 3
What shall be the minimum sum insured for Declaration Policies?
I. Rs. 10 lakhs
II. Rs. 50 lakhs
III. Rs. 1 crore
IV. Rs. 10 crore

Test Yourself 4
Which of the following policies are granted to cover under a single policy, stocks
which fluctuate between different locations?
I. Declaration policy
II. Floater policy
III. Local Authority policy
IV. RIV policy
Test Yourself 5
For which of the following goods, can a policy on the basis of Contract Price be
issued?
I. Goods of local manufacturers
II. Goods in work in progress in industries
III. Imported goods
IV. FMCG

Answers to Test Yourself

Answer 1
The correct option is IV.
Leakage and Contamination clause provides cover for accidental leakage and
contamination of oils and chemicals.
Answer 2
The correct option is III.
Reinstatement Value Policy may be extended to cover additional cost of
reinstatement incurred by the insured to comply with regulations enforced by
Authorities by incorporating the Local Authorities clause in the policy.
Answer 3
The correct option is III.
The minimum sum insured for Declaration Policies shall be Rs. 1 crore.
Answer 4
The correct option is II.
Floater policies are granted to cover under a single policy, stocks which
fluctuate between different locations.
Answer 5
The correct option is III.
A policy on the basis of Contract Price can be issued only for imported goods.

Self-Examination Questions
Question 1
Which of the following policy clause extends cover to material damage by perils
causing spoilage to loss of stock in process?
I. Temporary removal of stocks clause
II. Debris Removal clause
III. Spoilage Material Damage clause
IV. Leakage and Contamination clause
Question 2
In which of the following cases, the declaration policy cannot be issued?
I. Insurance required for short period
II. Stocks undergoing process
III. Stocks at railway sidings
IV. All of the above
Question 3
Which of the following policies shall be issued for stocks which are subject to
frequent fluctuations in value, or in quantity?
I. Family floater policy
II. Declaration policy
III. Local Authority policy
IV. Agreed bank policy
Answers to Self-Examination Questions
Answer 1
The correct option is III.
Spoilage material Damage Clause extends cover to material damage by perils
causing spoilage to loss of stock in process.
Answer 2
The correct option is IV.
Declaration policy cannot be issued in respect of: Insurance required for a short
period, Stocks undergoing process and Stocks at Railway sidings.

Answer 3
The correct option is II.
Declaration policy can be issued for stocks which are subject to frequent
fluctuations in value, or in quantity.

CHAPTER – 3
Test Yourself 1
Which of the following is an example of contributory hazards?
I. Electrical
II. Smoking
III. Construction
IV. Friction

Test Yourself 2
Experts have recognised three main classes of occupancies, on the basis of fire
load. Which of the following will be classified under “low fire load”?
I. Residential premises
II. Retail shops
III. Factory buildings
IV. Warehouses

Test Yourself 3
In which of the following circumstances can spontaneous combustion occur?
I. Non-absorption of oxygen by air
II. Slow oxidisation
III. Provision of ventilation
IV. Avoidance of moisture

Test Yourself 4
_____________ is a device designed for automatic detection and extinguishment
of a fire by the use of water in its initial stages.
I. First Aid Appliances
II. External Appliances
III. Sprinkler Installation
IV. Special Extinguishment Systems

Answers to Test Yourself

Answer 1
The correct option is III.
Construction is an example of contributory hazards.
Answer 2
The correct option is I.
Residential premises are classified under low fire load.
Answer 3
The correct option is II.
Slow oxidation generates heat, and with the rise in temperature, oxidation is
accelerated until ignition point is reached and the waste catches fire. Hence
slow oxidation can lead to spontaneous combustion.
Answer 4
The correct option is III.
Sprinkler Installation is a device designed for automatic detection and
extinguishment of a fire by the use of water in its initial stages.

Self-Examination Questions
Question 1
Experts have recognised three main classes of occupancies, on the basis of fire
load. Which of the following will be classified under “High Fire load”?
I. Residential premises
II. Retail shops
III. Factory buildings
IV. Warehouses
Question 2
_____________ are portable extinguishers, buckets and internal hose reels
designed for use on fire in the early stage.
I. First Aid Appliances
II. External Appliances
III. Sprinkler Installation
IV. Special extinguishment systems
Question 3
Which of the following is an example of bad housekeeping?
I. Segregation of hazardous processes and hazardous goods
II. Separate storage of oils, paints, and petrol
III. Regular maintenance of building, electrical installation, plant and
machinery and fire extinguishing appliances
IV. The presence of defective windows, trap doors
Answers to Self-Examination Questions
Answer 1
The correct option is IV.
Warehouses are classified under high fire load.
Answer 2
The correct option is I.
First Aid Appliances are portable extinguishers, buckets and internal hose reels
designed for use on fire in the early stage.

Answer 3
The correct option is IV.
The presence of defective windows, trap doors etc is an example of bad
housekeeping.

CHAPTER – 4
Test Yourself 1
Which of the following policies are issued only for items for which market value
cannot be ascertained?
I. Long term policies
II. Mid-term policies
III. Short term policies
IV. Valued policies
Test Yourself 2
Under which of the following sections, rates are provided for different types of
goods stored in godowns or silos or in the open outside the compound of
industrial risks?
I. Industrial manufacturing risks (Section IV)
II. Utilities (Section V)
III. Storage risks (Section VI)
IV. Tank Gas holders (Section VII)

Answers to Test Yourself

Answer 1
The correct option is IV.
Valued policies are issued only for items for which market value cannot be
ascertained.
Answer 2
The correct option is III.
Under storage risks (Section VI), rates are provided for different types of goods
stored in godowns or silos or in the open outside the compound of industrial
risks.
Self-Examination Questions
Question 1
Which of the following policies are issued for 36 months or more for house flat
owners?
I. Long term policies
II. Mid-term policies
III. Short term policies
IV. Valued policies
Question 2
Under which of the following sections, rates are provided for utilities located
outside the industrial / manufacturing risks?
I. Industrial manufacturing risks (Section IV)
II. Utilities (Section V)
III. Storage risks (Section VI)
IV. Tank Gas holders (Section VII)

Question 3
What is meant by “Per Se” rating?
I. “Per Se” rating means cover for each risk shall commence 15 days after the
receipt of premium.
II. “Per Se” rating means premium rates shall be charged on short period scale
on full sum insured for the balance period i.e., up to the expiry of the
policy.
III. “Per Se” rating means cover shall be granted for the entire property under
one or more policies.
IV. “Per Se” rating means each risk will be charged as its own merits at
applicable rate of premium.
Answers to Self-Examination Questions
Answer 1
The correct option is I.
Long term policies are issued for 36 months or more for dwellings.
Answer 2
The correct option is II.
Under utilities (Section V), rates are provided for utilities located outside the
industrial / manufacturing risks.
Answer 3
The correct option is IV.
“Per Se” rating means each risk will be charged as its own merits at applicable
rate of premium.

CHAPTER – 5
Test Yourself 1
In a proposal form, _______________ is used to convert the answers given by
the proposer to become continuing warrantees?
I. Endorsement
II. Declaration clause
III. Cover note
IV. Schedule

Test Yourself 2
What is the objective of risk inspection report?
I. To act as an evidence of insurance protection
II. To authenticate all the additions or alterations made after the submission of
the proposal form
III. To provide the underwriter with a complete picture of the risk so that he is
enabled to determine the rates of premium and the terms of insurance
IV. To provide for all individual details of the insurance contract.

Test Yourself 3
Which of the following can be issued by insurers as an evidence of insurance
protection, before the policy document is issued?
I. Risk inspection report
II. Declaration letter
III. Cover note
IV. Policy draft

Test Yourself 4
In the format of policy schedule, which of the following data will be included
under “Risk Description”?
I. Name and address of insured and insurer
II. Description of property
III. Risk code
IV. Claim Experience Discount

Answers to Test Yourself

Answer 1
The correct option is II.
In a proposal form, declaration clause can be used to convert the answers given
by the proposer to become continuing warrantees.
Answer 2
The correct option is III.
The main objective of risk inspection report is to provide the underwriter with a
complete picture of the risk so that he is enabled to determine the rates of
premium and the terms of insurance.
Answer 3
The correct option is III.
Before the policy document is issued, cover note is issued by insurers as an
evidence of insurance protection.
Answer 4
The correct option is II.
In the format of policy schedule, ‘description of property’ is included under
“risk description”.
Self-Examination Questions
Question 1
In the format of policy schedule, which of the following data will be included
under “identification details”?
I. Name and address of insured and insurer
II. Description of property
III. Risk code
IV. Claim Experience Discount

Question 2
What is meant by drafting of policies?
I. It means completion of the schedule which forms part of the fire policy
II. It means providing an evidence of insurance, before the policy document is
issued
III. It means filling up all the relevant information in proposal form by agent
IV. It means signing a declaration from the proposer, that all the information
provided by him is correct.
Question 3
If insured wishes to make Alteration in the period of insurance, then such
changes can be made in ________________?
I. Policy Draft
II. Declaration letter
III. Cover note
IV. Endorsement
Answers to Self-Examination Questions
Answer 1
The correct option is I.
Name and address of insured and insurer are included under “identification
details” of policy schedule.
Answer 2
The correct option is I.
Drafting of policies means completion of the schedule which forms part of the
fire policy.
Answer 3
The correct option is IV.
If insured wishes to make alteration in the period of insurance, then such
changes can be made in Endorsement.

CHAPTER – 6
Test Yourself 1
Which of the below is / are alternative terms used for ‘retention’?
I. Limit
II. Net holding
III. Both of the above
IV. None of the above

Test Yourself 2
In which of the reinsurance methods, each risk is reinsured individually?
I. Facultative
II. Treaty
III. Quota share
IV. Surplus
Test Yourself 3
‘Motor insurance other than fleets’ will be classified under which of the below?
I. Internal tariff rated products
II. Packaged of customised products
III. Individual experience rated products
IV. Exposure rated products

Answers to Test Yourself

Answer 1
The correct answer is III.
The alternative terms used for ‘retention’ are limit and net holding.
Answer 2
The correct option is I.
In facultative reinsurance, each risk is reinsured individually.
Answer 3
The correct option is I.
‘Motor insurance other than fleets’ will be classified under ‘internal tariff rated
products’.
Self-Examination Questions
Question 1
With regards to burning intensity, ‘metal goods and hardware’ will be classified
under which of the below category?
I. Burn instantly
II. Burn with great intensity
III. Burn moderately
IV. Incombustible or burn very slowly
Question 2
Expand the term ‘EML’.
I. Estimated maximum loss
II. Estimated minimum loss
III. Elaborate maximum loss
IV. Elaborate minimum loss

Question 3
Based on risk profile data and other underwriting information, an estimate of
the CAT – PML for the treaty is arrived at. In hard market conditions, reinsurers
insist on additional control measures / restrictions in the form of:
I. Aggregate Cession Limit
II. Per Event Loss Limit
III. Annual Loss Limit
IV. Any of the above
Answers to Self-Examination Questions
Answer 1
The correct option is IV.
With regards to burning intensity, ‘metal goods and hardware’ will be classified
under the category of ‘incombustible or burn very slowly’.
Answer 2
The correct option is I.
EML stands for ‘estimated maximum loss’.
Answer 3
The correct option is IV.
Based on risk profile data and other underwriting information an estimate of the
CAT – PML for the treaty is arrived at. In hard market conditions, reinsurers
insist on additional control measures / restrictions in the form of: Aggregate
Cession Limit, Per Event Loss Limit or Annual Loss Limit.
 CHAPTER – 7
Test Yourself 1
In fire insurance, ‘onus of proof’ that the loss was the direct result of fire rests
with _________________.
I. Insurer
II. Surveying officer
III. Insurance agent
IV. Insured

Test Yourself 2
_____________ are claims which are paid as a matter of grace where the loss is
outside the scope of the policy or the liability under the policy, in strict legal
terms, is doubtful.
I. Warranty payments
II. Ex-gratia payments
III. Endorsement payments
IV. Alteration payments

Test Yourself 3
How is ‘value in exchange’ measured?
I. It is measured by the cost of replacing the property less depreciation
II. It is measured by what a buyer will pay for the property
III. It is measured by giving an allowance for depreciation that has to be made
in the cost of replacement
IV. It is measured by giving an allowance for `betterment’ that has to be made
in the cost of replacement

Answers to Test Yourself

Answer 1
The correct option is IV.
In fire insurance, ‘onus of proof’ that the loss was the direct result of fire rests
with insured.
Answer 2
The correct option is II.
Ex-gratia payments are claims which are paid as a matter of grace where the
loss is outside the scope of the policy or the liability under the policy, in strict
legal terms, is doubtful.
Answer 3
The correct option is II.
Value in exchange is measured by what a buyer will pay for the property or by
what it would cost to buy similar property at the place and at the price ruling at
the time (market value).
Self-Examination Questions
Question 1
_________________ refers to the reduction in the value of the machinery due to
usage, deterioration, wear and tear, rust, corrosion, metal fatigue etc.
I. Salvage value
II. Betterment
III. Depreciation
IV. Deterioration
V.
Question 2
_________________ refers to the superior qualities of the replaced machinery
such as increased output, reduced consumption of power and lower costs of
maintenance.
I. Salvage value
II. Betterment
III. Depreciation
IV. Deterioration

Question 3
Which of the following refers to the merchandise (articles and commodities)
which are held for sale in retail shops or in wholesale establishments, factories?
I. Raw materials
II. Stock-in- process
III. Finished goods
IV. Stock-in-trade
Answers to Self-Examination Questions
Answer 1
The correct option is III.
Depreciation refers to the reduction in the value of the machinery due to usage,
deterioration, wear and tear, rust, corrosion, metal fatigue etc.
Answer 2
The correct option is II.
Betterment refers to the superior qualities of the replaced machinery such as
increased output, reduced consumption of power and lower costs of
maintenance.
Answer 3
The correct option is IV.
Stock-in-trade refers to the merchandise (articles and commodities) which are
held for sale in retail shops or in wholesale establishments, factories.

CHAPTER – 8
Test Yourself 1
On intimation of any loss where a surveyor has to be appointed for assessing a
loss / claim, it shall be so done within _________ of the receipt of intimation
from the insured.
I. 24 hours
II. 48 hours
III. 72 hours
IV. 1 week

Answers to Test Yourself

Answer 1
The correct answer is III.
On intimation of any loss where a surveyor has to be appointed for assessing a
loss / claim, it shall be so done within 72 hours of the receipt of intimation from
the insured.
Self-Examination Questions
Question 1
In no case shall a surveyor take more than _______ from the date of his
appointment to furnish his report.
I. One month
II. Three months
III. Six months
IV. One year
Question 2
In a claim settlement, in case of delay in the payment, the insurer shall be
liable to pay interest at a rate which is ______ above the bank rate prevalent at
the beginning of the financial year in which the claim is reviewed by it.
I. 5%
II. 4%
III. 3%
IV. 2%
Question 3
If the loss could be attributed to a third party, the surveyor should indicate the
possibilities of recovery from the third party under _________ proceedings.
I. Subrogation
II. Proximate cause
III. Utmost good faith
IV. Insurable interest

Answers to Self-Examination Questions

Answer 1
The correct option is III.
In no case shall a surveyor take more than six months from the date of his
appointment to furnish his report.
Answer 2
The correct option is IV.
In a claim settlement, in case of delay in the payment, the insurer shall be
liable to pay interest at a rate which is 2% above the bank rate prevalent at the
beginning of the financial year in which the claim is reviewed by it.
Answer 3
The correct option is I.
If the loss could be attributed to a third party, the surveyor should indicate the
possibilities of recovery from the third party under subrogation proceedings.

CHAPTER – 9
Test Yourself 1
Turnover consists of three elements: variable charges, standing charges and net
profit. ‘Salaries to permanent staff’ will be included under which element?
I. Variable charges
II. Standing charges
III. Net profit
IV. If it is less than 10% of turnover then under variable charges else under
standing charges.

Test Yourself 2
Examine the components of a ‘consequential loss policy’ and identify the
section within which ‘various definitions’ related to the policy will be included.
I. Operative clause
II. Proviso
III. Schedule
IV. Specification

Answers to Test Yourself

Answer 1
The correct answer is II.
‘Salaries to permanent staff’ will be included under standing charges.
Answer 2
The correct option is IV.
Various definitions related to the policy will be included in the ‘specification’
section.
Self-Examination Questions
Question 1
Which of the below statement is correct?
I. The subject matter of profits insurance is material property and the subject
matter of fire insurance is earning capacity of the property.
II. The subject matter of fire insurance and profit insurance is material
property.
III. The subject matter of fire insurance and profit insurance is the earning
capacity of the property.
IV. The subject matter of fire insurance is material property and the subject
matter of profits insurance is earning capacity of the property.
Question 2
‘No claim is payable or any 'on-account' payment shall be paid, if the terms of
this condition are not complied with’.
The above statement is true with regards to which ‘condition’ in the policy?
I. Condition 1
II. Condition 2
III. Condition 3
IV. Condition 4

Question 3
___________ provides that the policy and the schedule shall be read together as
one contract.
I. Condition 4
II. Condition 5
III. Condition 6
IV. Condition 7
Answers to Self-Examination Questions
Answer 1
The correct option is IV.
The subject matter of fire insurance is material property and the subject matter
of profits insurance is earning capacity of the property.
Answer 2
The correct option is III.
‘No claim is payable or any 'on-account' payment shall be paid, if the terms of
this condition are not complied with’.
The above statement is true with regards to ‘Condition 3’ in the policy.
Answer 3
The correct option is II.
Condition 5 provides that the policy and the schedule shall be read together as
one contract.

CHAPTER – 10
Test Yourself 1
The rate of premium for C.L. policy consists of which of the following
components?
I. Basis rate and percentage for indemnity period
II. Average fire rate and percentage for indemnity period
III. C.L. rate and percentage for indemnity period
IV. Basis rate and percentage of basis rate
Test Yourself 2
Which of the following method of wages insurance has the feature of ‘carry over
provision’?
I. Insurance for full indemnity period
II. Annual method
III. Period basis
IV. Dual basis of insurance

Test Yourself 3
__________ is defined as the rate of gross profit per unit earned on the output
during the financial year immediately before the date of damage.
I. Rate of gross profit
II. Rate of Net profit
III. Rate of Turnover
IV. Rate of Output

Test Yourself 4
In the claim settlement process which of the following details are not included
in preliminary report submitted by Surveyor?
I. The extent of interruption expected
II. The steps being taken to minimise the interruption
III. The amount which in his opinion should be provided in the insurers’ books as
a reserve against the estimated loss.
IV. Final Assessment of loss

Answers to Test Yourself

Answer 1
The correct option is I.
The rate of premium for C.L. policy consists of two components: Basis rate and
percentage for indemnity period.
Answer 2
The correct option is IV.
Carry over provision is a feature offered under dual basis of insurance method.
Answer 3
The correct option is I.
Rate of gross profit is defined as the rate of gross profit per unit earned on the
output during the financial year immediately before the date of damage.
Answer 4
The correct option is IV.
Details regarding final assessment of loss cannot be provided under preliminary
report submitted by Surveyor.
Self-Examination Questions
Question 1
Under which of the following methods of insuring wages, scheme wages are
entirely removed from the gross profit cover, and are insured as a separate
item?
I. Insurance for full indemnity period
II. Annual method
III. Period basis
IV. Dual basis of insurance
Question 2
Which of the following case is an example of ‘Retrenchment’?
I. Voluntary retirement of workman
II. Termination of a workman by the employer for any reason whatsoever
III. Retirement of the workman on reaching the age of superannuation
IV. Termination of the service of a workman on the ground of continued illhealth
Question 3
_______________is defined as “the money paid or payable to the insured for
services rendered in the course of the business at the premises”.
I. Gross profit
II. Net profit
III. Gross revenue
IV. Net revenue
Answers to Self-Examination Questions
Answer 1
The correct option is IV.
Under dual basis of insurance method of insuring wages, scheme wages are
entirely removed from the gross profit cover, and are insured as a separate
item.
Answer 2
The correct option is II.
Termination of a workman by the employer for any reasons whatsoever is an
example of ‘Retrenchment’.
Answer 3
The correct option is III.
Gross revenue is defined as “the money paid or payable to the insured for
services rendered in the course of the business at the premises”.

CHAPTER – 11
Test Yourself 1
Complete the following sentence.
As per the rating pattern followed under the Petrochemical Tariff, the Fire and
Explosion rate for each plant, after application of all loading and discounts,
should:
I. Either be less than 65% of the basic rate or shall it be more than 165% of the
basic rate
II. Always be less than 65% of the basic rate
III. Always be more than 165% of the basic rate
IV. Neither be less than 65% of the basic rate nor shall it be more than 165% of
the basic rate

Answers to Test Yourself

Answer 1
The correct answer is IV.
As per the rating pattern followed under the Petrochemical Tariff, the Fire and
Explosion rate for each plant, after application of all loading and discounts,
should neither be less than 65% of the basic rate nor shall it be more than 165%
of the basic rate.
Self-Examination Questions
Question 1
All industrial risks (other than risks rateable under Petrochemical Tariff) having
overall Sum Insured of ________ and above in one or more locations in India
shall be eligible for Industrial All Risks Policy.
I. Rs. 25 Crores
II. Rs. 50 Crores
III. Rs. 75 Crores
IV. Rs. 100 Crores
Question 2
The Petrochemical Tariff classifies flammable materials into classes according
to their flash point. Which of the below is correct with regards to flash point for
flammable material classified as Class C.
I. Below and up to 230 C
II. Above 230 C and up to 650 C
III. Above 650 C and up to 930 C
IV. Above 930 C
Question 3
The Industrial All Risks Policy covers compulsory as well as optional covers /
perils. Listed below are some compulsory covers / perils. List the odd one
(optional cover / peril) out.
I. Fire and All Special Perils
II. Machinery Loss of Profit Cover
III. Electronic Equipment Insurance
IV. Burglary (free)

Answers to Self-Examination Questions

Answer 1
The correct option is IV.
All industrial risks (other than risks rateable under Petrochemical Tariff) having
overall Sum Insured of Rs.100 crores and above in one or more locations in India
shall be eligible for Industrial All Risks Policy.
Answer 2
The correct option is III.
For flammable material classified as Class C, the flash point is above 650 C and
up to 93 0C.
Answer 3
The correct option is II.
Machinery Loss of Profit Cover is an optional cover and not a compulsory cover
under the IAR policy.