Chap 18 & 19 - Quiz (Revision)

Jeevan has insured his property with 2 insurance company Oman Insurance company and Continental Financial services for AED 2 million and AED 6 million respectively for fire. Due to fire he suffers a loss of AED 1 million and he files a claim for AED 1 million from each company. Which TWO insurance principles are applicable here ?

• Principle of Indemnity

• Principle of Insurable Interest

• Principle of Contribution

• Principle of Subrogation

After the claim, the right of the property is transferred to the Insurance Company. Under no circumstances, the insured is allowed to make any profit by sale of scrap. Identify the Principle.

• Principle of indemnity

• Principle of Insurable Interest

• Principle of Subrogation

• Principle of Utmost Good Faith

Global Travel Ltd. gets all the buses insured for $20,000 each under comprehensive insurance policy. One of its buses met with an accident. The insurance company appointed its surveyor who assed that the loss was assessed at $5000 and the compensation was paid. Identify the principle of insurance that is applicable here..

• Principle of indemnity

• Principle of Insurable interest

• Principle of Contribution

• Principle of subrogation

What are the TWO types of Premises insurance ?

• Building insurance

• Fire insurance

• Contents insurance

• Flood insurance

At the end of last year, a tropical storm has damaged the roof of a 10 storey building in Philipines. Which type of Premises insurance covers the cost of repairs to the roof ?

• Disaster insurance

• Building insurance

• Structure insurance

• Contents insurance

Which are examples of Non-insurable risks ? Tick ALL that applies.

• A highway accident damaged a lorry laden with goods

• There supply of tulips has fallen due to climate change, causing a drop in sales

• Consumers now prefer organic and healthier food

• The machinery's efficiency slowed down after 5 years of use in production.

Their job is to examine and check the true value of a loss. They are employed by the Insured.

• Loss adjuster

• Assessor

• Actuary

• Insurance agent

Asia Manufacturing makes teak furniture and sells this to the European market. The products are bulky and are shipped to customers. Which type of insurance covers the loss of products during shipping ?

• Credit Insurance

• Fire Insurance

• Marine Insurance: Hull

• Marine insurance: Cargo