CLASS 11 BUSINESS MCQ 5

Where insurable interest is not seen?

• Own Life

• Own Family

• Own Business

• Best friend's life

Which is not a principle of insurance?

• Mitigation

• Indemnity

• Contribution

• Cooperation

If the insured is not taking necessary steps to reduce the loss of risks, which principle of insurance is being violated by the insured here?

• Contribution

• Subrogation

• Mitigation

• Utmost good faith

Rishabh has taken a life insurance policy hiding the fact that he is a heart patient. Later on he dies of a heart attack. Is insurance company liable to pay the insured amount to heirs of Rishabh?

• Yes, heirs of Rishabh's are entitled to claim the compensation amount.

• Yes, because he has taken the life insurance policy.

• No, because he died of Heart attack.

• No, because Rishabh has hidden an important material fact to the insurer and violating the principle of utmost good faith.

Mr. Arora lives in Mumbai. He has friendly relations with an old lady living in his neighbourhood. Can he take a life insurance policy for her?

• Yes, of course why not!! After all, she is his lovely neighbour :)

• Oh no way, He cannot do that. Insurance can be taken only for a close family member only :(

Yanglha is a businesswoman. She owns two warehouses called SAFE CO. She stores goods for various e commerce websites. She had purchased a fire insurance for both the warehouses. Due to a short circuit in the warehouse, all the products caught fire. Yanglha, who lived nearby, saw the fire but did not take appropriate steps to save her property. Identify the principle of insurance which she breached.

• Subrogation

• Utmost good faith

• Mitigation

• Contribution

Geeta is a trader dealing in food grains. She entered into a contract with XYZ company, wherein XYZ agreed to protect against loss incurred by Geeta in business. In consideration for this service, Geeta agreed to make regular payments to XYZ company. Which type of an agreement is this? What is it called?

• Partnership Contract

• Insurance Contract

• Employment Contract

• Business Contract

The contract issued by the insurance company to the insured is called ______

• Agreement

• Policy

• Arrangement

• Insurance Document

Insurance can also be sold through by Banks.

• Correct

• Incorrect

Laila Khan insured her penthouse against fire for Rs 10 lakh. In August, a fire broke out in her locality which damaged her house due to which she suffered a loss of Rs 6 lakh. How much will be paid to Laila Khan by the insurance company?

• 6 Lakh

• 5 Lakh

• 10 Lakh

• 11 Lakh