GIPSA Promotion Exam: Daily One-liners (15th February 2020)

GIPSA Promotion Exam: Daily One-liners (15th February 2020)

Dear Aspirants,

As we all know that Marine, Fire, ENGINEERING, AVIATION, Motor, HRM Part is playing a major role in any exam weather it will be GIPSA and Para 13.2 examinations. So here we are providing the Daily one liner for every upcoming exam . Daily one liner consist top study material in one line which is important for every insurance promotion exams.’


  • Implosion means – bursting inward or sudden collapse inwards due to external pressure
  • In fire insurance salvage means – Excess of value at risk over sum insured
  • Fire policy covers – 12 named perils
  • The basis rate under Fire LOP policy is based on – the average rate of process blocks under the fire policy
  • FLOP Covers – Loss of profit due to reduction in turnover during indemnity period
  • The gross profit under FLOP Means – Net profits + standing charges
  • To constitute Fire elements required are – Three(3)


  • Under MCE Policy cover starts from – the moment the equipment leave the manufacturers warehouse ( import or within the country )
  • In MCE Policy Marine risks covers – All risks as per Institute cargo clauses ( A )
  • Loss or damage caused under MBD policy cover under following circumstances – while it is at work or at rest, while being dismantled for cleaning or overhauling, during cleaning or overhauling operations, when being shifted within the premises, during subsequent erection


  • As per Marine Insurance Act all Marine policies are valued policies but DUTY policy – is not a valued policy and if any claim it will be paid as per the duty paid or on the basis of the Sum Insured whichever is less
  • The rate of premium for Duty Policy is – 75% of the rate charged on cargo
  • In Increased Value policy ‘Lost or not Lost’ provision of the Standard policy shall not apply , unless the insurance has been effected in terms of – a standing open policy or Open Cover
  • The assured will be required to bear 25% of the claim amount payable under – the Increased Value component of the policy
  • Increased value policy shall be given for the insured for more than – 100% of the CIF value of the cargo
  • War risk is excluded for sending except – at a transshipment ( or Air port ), when cover is allowed to continue for a maximum period of 15 days on board or on land, whilst awaiting on- carriage


  • To get NCB confirmation from the previous Insurer – the time limit is 21 days if the insurance company does not write a confirmation letter it is breach of the tariff
  • If earlier policy taken at Abroad and earned NCB there can the insured claim the same in India at the time of renewal – Yes, subject to production of proof and he is eligible to utilize the same within 3 years of period
  • To get eligibility to claim NCB the vehicle must be insured – continuously for the period of 12 months
  • How many Automobile Associations are there – Automobile Association of Eastern India, Uttar Pradesh Automobile Association, Western India Automobile Association, Automobile Association of Southern India and the Automobile Association of Upper India
  • What is the discount allowed if the insured is a member of the above association – 5% of discount of the Own Damage premium subject to a maximum of Rs.200/- for a private car and maximum of Rs.50/- for a Two Wheeler
  • If insured cancels member during the currency of the policy – the discount eligible is on pro rata basis


  • Who can bring an action against a director of a company giving rise to a claim under D&O Policy – Customers, Regulator and employees
  • What cost cannot be usually covered under a Product Recall Cover – Product Guarantee
  • Claims under Product Liability Policy can be paid in – Foreign currency with RBI Permission
  • The retroactive clause under a Liability policy defines that – Under a claims made policy the loss should occur within policy period in case of renewal without break
  • Ratio of AOA:AOY Maximum Indemnity limit under Public Liability ( ACT Policy ) is – 1:3
  • Contribution to Environmental Relief Fund is under the PLI Act is–An equivalent amount of premium
  • Retroactive date means – Inception date of the policy without break

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