REVISION

Government departments, tourist boards e.g. VisitBritain, tourist information centres, museums e.g. Natural History, Science etc, Galleries e.g. National Gallery, Tate Modern etc, parks and Transport for London are all funded by taxpayers money through the government or local councils. Therefore, these all belong to which type of travel and tourism organisation?

• Private

• Public

• Voluntary

A government company is any company in which paid up capital held by the government is less than:

• 49%

• 50%

• 51%

• 60%

Which of the following is not a feature of departmental undertakings.

• (a)The employees of the enterprise are not civil servants

• (b)They are generally considered to be a major subdivision of the government department

• (c) Funding of these enterprises directly come from government treasury.

• (d)all of the above

It is the prime responsibility of the insured to take reasonable steps to minimize loss/damage to the insured property. Name the principle of insurance

• principle of mitigation

• principle of indemnity

• principle of utmost good faith

• principle of subrogation

A public enterprise deals in manufacturing of engineering goods and compete with private sector enterprises in order to achieve higher profits. It is a public sector enterprise in which government of India held 80% of paid up share capital and it is registered as per company act,1956. Which type of public sector enterprise is discussed above?

• Statutory company

• Govt company

• Departmental undertaking

• Private company

Food corporation of India was established through special act passed in parliament in 1964 with the objective to create buffer stocks of food like wheat, rice, etc. for emergency situations like drought, flood famines, etc. Which type of public sector enterprise is discussed above?

• Departmental undertaking

• Statutory corporation

• Public sector

• Multinational company

A company insures its stock against fire for Rs. 15 Lakh. A fire broke down and the total stock was lost. At the time of fire there was stock worth Rs. 25 Lakh. What is the value of compensation company would be entitled to?

• The contract of Mitigation, The insured can, in the event of loss, recover the actual amount of loss from the insurer. So, maximum amount of Rs, 15 lakh is the value of compensation.

• The contract of fire insurance is a contract of strict indemnity. The insured can, in the event of loss, recover the actual amount of loss from the insurer. This is subject to the maximum amount for which the subject matter is insured. So, maximum amount of Rs, 15 lakh is the value of compensation.

• The principle of Subrogation, The insured can, in the event of loss, recover the actual amount of loss from the insurer. So, maximum amount of Rs, 10 lakh is the value of compensation.

• The principle of Proximate cause, The insured can, in the event of loss, recover the actual amount of loss from the insurer. So, maximum amount of Rs, 10 lakh is the value of compensation.

Mr. Satish gets his house insured against fire of Rs. 20 Lakh with insurer A and for Rs. 10 Lakh with insurer B. A loss of Rs. 3 Lakh occurred.

(1) How much compensation can be claimed from A and B separately and Why?

(2) Name the principle of Insurance in the above case.

• According to this principle, the insured can claim the compensation without actual loss either from all insurers or from any one insurer. as it principle of indemnity, compensation can be claimed in ratio 2:1

• According to this principle, the insured can claim the compensation only to the extent of actual loss either from all insurers or from any one insurer. As it is principle of indemnity, compensation can be claimed in ratio 2:1

• As it is principle of Subrogation, compensation can be claimed in ratio 2:2

• According to this principle, the insured can claim the compensation only to the extent of actual loss either from all insurers or from any one insurer. As it is principle of utmost good faith, compensation can be claimed in ratio 2:1

Name the principle of insurance for each of the following statements:

(a)The insured is expected to disclose all the important facts related to the property insured.

(b) Insured must have some economic interest in the subject matter of Insurance contract.

(c) To claim for insurance the insured must take reasonable steps to minimize the loss

• a) subrogation b)mitigation c)indemnity

• a) Utmost good faith b)subrogation t c)mitigation

• a) Utmost good faith b)insurable interest c)mitigation

• a) proximate cause b)insurable interest c)mitigation

Divya Garments Ltd. has a loan of Rs. 10,00,000 to pay. They are short of funds so they are trying to find means to arrange funds. Their manager suggested to claim from insurance company against stock lost due to fire in the ware house. He actually meant that they can put their warehouse on fire and claim from Insurance company against stock insured. They will use the claim money to pay loan.

(a) Will the company receive claim if the surveyer from company comes to know the seal cause of fire?

(b) Which values did company ignore while planning to arrange money from false claim?

• a) yes the company will not receive claim if surveyor come to know the real cause of fire and the contract will become null and void.

  b) Principle of indemnity

• a) No the company will not receive claim if surveyor come to know the real cause of fire and the contract will become null and void.

  b) Principle of Utmost good faith

• a) No the company will not receive claim if surveyor come to know the real cause of fire and the contract will become null and void.

  b) Principle of proximate cause

• a) yes the company will not receive claim if surveyor come to know the real cause of fire and the contract will become null and void.

  b) Principle of subrogation