Business services Quiz-3

Without disclosing that he is suffering from TB, Mr. A gets himself insured against death for rupees 10 lakhs. He lives for another three-four years and dies due to TB. The insurance company comes to know about Mr. A’s illness only after his death. Now, under these circumstances the insurance company is not liable to pay anything to the dependents of Mr. A as the contract between the insurance company and Mr. A is void. Identify the principle of insurance to which the above example related:

• Utmost good faith

• Insurable interest

• Indemnity

• Subrogation

In the new digital market place banks and financial institutions have started providing services over the Internet. This type of service is provided by the banks on the Internet, lowers the transaction cost, adds value to the banking relationship and empowers customers. Name the service provided by the banks.

• Electronic fund transfer

• Automatic teller machine

• Credit card

• All of the above.

If any person gets his property insured by three insurance companies, then at the time of incurrence of loss, all the three companies will compensate for the loss faced but in a proportionate manner. Every company will not pay the full compensation individually. Moreover, the total amount paid by the insurance company, will not, in any condition, exceed the actual loss incurred. Name the principle of insurance to which above statement is related.

• Contribution

• Indemnity

• Subrogation

• Insurable interest

Mr. Narayan desires to have two benefits from his bank account first, to earn higher interest on balance and 2nd to face minimum risk of dishonoring a cheque. Which type of account should be opened by him in Punjab National Bank?

• Saving account

• Current account

• Multiple options account

• Fixed deposit account

UPI stands for-

• Unique Payment Introduction

• Union Payment Interface

• Upper Payment Interface

• Unified Payment Interface

Which of the following is the subject matter of Marine Insurance?

• Hull

• Wages

• Ship Captain

• Storm

A person gets his stock of Rs.25,000 insured for Rs.35,000. A fire occurs and the whole stock gets damaged. The insurance company will pay him only Rs.25,000, the actual value of his stock and not Rs.35,000. Which principle of insurance is applied in this case?

• Principle of Contribution

• Principle of Subrogation

• Principle of Indemnity

• Principle of Insurable Interest

Which of the following is not related to Life Insurance Contract?

• Conditional Contract

• Unilateral Contract

• Indemnity Contract

• None of these

Ankur saves Rs.3,000 every month. Which type of Bank Account he should open with the bank?

• Current Account

• PPF Account

• Recurring Deposit Account

• Saving Account

The insured is expected to disclose all the important facts related to property insured. Which Principle is discussed here?

• Mitigation

• Insurable Interest

• Indemnity

• Utmost Good Faith