GIPSA Promotion Exam: Daily One-liners (Part 13)

GIPSA Promotion Exam: Daily One-liners (Part 13)

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.’


  • Fire business has been de tariffed from – 1.1.2007
  • Close proximity claims is applicable to a risk occurring within – 5 days
  • Floater policy can be issued to – Single sum insured
  • Refund of premium under FIRE declaration policy shall be restricted to – 50%
  • Issue of Fire Declaration policy does not cover – Stock in process
  • In LOP policy indemnity period means – Specified interruption period opted
  • Terrorism pool is managed by – GIC
  • The essentials of Fire are – Fuel, Oxygen & Source of Ignition
  • If bank signed on the Discharge voucher is it fully binding on all the parties – Yes
  • Damage caused by Acid in fire insurance policy is payable or Not – No it is not payable
  • Fearing possible burglary one lady kept her Jewelry in an unlighted grate and next morning the fire was lighted by mistake and jewelry wad damaged by fire – In this case the loss is payable( Harris vs. Poland, 1941)
  • Sugar was being refined by being heated by stove and due to negligence of an employee the stove was overheated and the sugar was spoilt but it did not ignite – The claim was rejected by the court ( Austin vs. Drew 1815 )
  • Once there is a fire within the meaning of policy, the losses covered are – Smoke and heat, scorching, falling walls, collapse of roofs, floors etc


  • ALOP Covers – financial consequences of a project being delayed of accidental damage to the project materials
  • In ALOP the insured means – Principal or Owner of the project i.e. The party who stands to lose the estimated revenue earnings if the project gets delayed
  • Net profit + standing charges = Turnover minus Variable cost
  • In case of large Cold Storage Deterioration policies can be issued on – Declaration basis
  • Civil Engineering Completed Risks Insurance (CECR) is a – named perils policy
  • CECR Insurance covers – against external hazards for which the contractor or the operator or owner as the insured is not responsible
  • The MCE policy provides – wider cover than under ICC(A)
  • On deck shipments can be covered under MCE – at terms to be agreed
  • MBD Policy not covered – loss or damage due to Fire, Lightning, Explosion, theft, collapse of buildings, subsidence, etc
  • Damage resulting from experiment and overload covered by MCE – No it is not covered
  • The most eligible risks for Machinery Insurance are units of – Power plant and Prime Movers
  • Electrical and Mechanical breakdown or internal explosions covered by CPM – No all that risks are excluded in the policy
  • Whilst working underground in CPM can that equipment covered – No it is an exclusion


  • Upward adjustment in Special Declaration Policy – is not permitted
  • If SDP is cancelled by the assured – the minimum premium retention is Rs.5000/-
  • Downward  adjustment of premium can be made after receiving  the  final declaration    –which must be submitted by the insured within 60 days of expiry of the policy
  • Annual policy issued to – cover goods belonging to the assured are held in trust by him, not under contract of sale or purchase, which are in transit by rail or road from specified depots/processing units to other specified depots/processing units
  • The Annual Policy insurance is subject to the warranty of – warranted that the depots from which the transit commences and at which the transit ends are owned or hired by the assured
  • Using “Pair and set clause” the underwriter limits his liability – to the insured value of the lost or damaged part
  • “Cutting clause” – states that the damaged portion should be cut off and the balance utilized. This is used in policies covering pipes or similar items of length
  • Label Clause is used in – Tinned food stuffs
  • The Pickings Clause provides that – the insurer will pay the cost of picking and the cost of re baling both sound and damaged material because the damaged material does have salvage value and this implements in Cotton, Wool and similar commodities
  • Garbling Clause provides that – the insurer will pay the cost of garbling ( means sift, to cleanse, to separate sound from the whose )as such an exercise prevents further damage and reduces the claim


  • “ Certificate of Insurance” issued as per – sub-section (3) of section 147 of the MV Act Section 147 for the purposes of third party insurance related to either death of a person or grievous hurt to a person, the Central Government shall prescribe a base premium and the liability of an insurer in relation to such premium for an insurance policy under sub-section (1) in consultation with the Insurance Regulatory and Development Authority.(2019)
  • Section 95 ( 1 ) of the MV Act, 1939 covers –
  1. Death or bodily injury to any person or damage to property of the third party
  2. Death or bodily injury to any passenger of a public service vehicle
  3. Liability under workmen compensation act in respect ) of death or bodily injury of employees of the insured such as driver, conductor and person being carried in the goods carriage if such liability arises out of and in the course of employment.
  4. Death or bodily injury for passengers being carried in a passenger carrying vehicle
  • In Clause ( 1 ) b ( i ) the expression including, owner of the goods or his authorized representative carried in the vehicle is added – in section 147 of New Act.
  • Provision (ii ) of Clause ( 1 ) ( b ) of section 95 – of the Old Act is deleted in the NEW Act
  • Clause 2 ( a ) of old section 95 is substituted by the expression “Save as provided in clause ( b ), the amount of liability incurred”. In effect the – Limitation of liability based upon the class of vehicle under the 1939 Act is removed in the new act
  • Under Section 103-A of the 1939 Act Insurance companies had choice of refusal to transfer the Certificate of Insurance but this – provision has been taken away in terms of the provisions of SECTION 157 of the MV Act 1988.
  • GR 17 deals with – Transfers
  • Section 149 deals with – Duty of Insurers to satisfy Judgements and defence available to the insurers
  • Section 150 deals with – Rights of third parties against Insurers on insolvency of the insured
  • Section 151 deals with – duty on a person who has incurred a liability to a third party to disclose all particulars of his insurance if demanded by the third party


  • Floating Policies in Burglary cover goods in – more than one location covered under one sum insured subject to the subject matter of the insured should be the same in all locations and the locations should be in the same city, town or village
  • Insured has to produce the bills or invoices of the items at the time of claim and it is a cumbersome process hence to avoid this insurers agree to settle the claims by – incorporating “inventory and valuation clause” in the policy
  • As per the above clause the values are agreed and valued by – the Professional valuer and at the time of claim there should be no dispute in regard to value
  • The difference between Valued Policy and Inventory and Valuation clause policy is – in valued policy there will not be any depreciation but in second one depreciation and other things to be taken into account to know the pure indemnity
  • Total amount payable under the above policy is – Rs.50000/- towards diagnosis, biopsy, surgery etc
  • Who will be covered – Insured and his spouse also covered
  • Cancer Insurance Policy can be issued to – Cancer Patients Aid Association Members
  • Under Cancer Insurance Policy – Only Allopathic mode of treatment is covered
  • Bhavishya Arogya Policy is meant for – medical expenses due to illness/accidental injury incurred by the insured person during his retirement age as defined in the policy
  • Bhavishya Arogya Policy can be issued – at the age of 25 years to 55 years age and the maximum sum insured is Rs.50000/- and for any disease 20000/- per any one illness or injury


Rule 26:

Action on Inquiry Report: The matter may be either remitted back to IA by DA for fresh or further inquiry recording reasons for the same.

  • The DA may disagree with the findings of IA on any article of charge and record reasons for the same if evidence on record is sufficient.
  • If DA having regard to findings on all or any of the articles of charge is of the opinion that penalties specified in rule 23 should be imposed, notwithstanding anything contained in Rule 27 may impose such penalty.
  • If DA having regard to the findings on all or any of the charges is of the opinion that no penalty is called for may pass an order exonerating the employee.

Rule 27:

Procedure for imposing Minor Penalties:

  • Whenever it is proposed to impose any of the minor penalties in Rule 23, the employee concerned should be informed in writing about the imputations of misconduct and give an opportunity to submit his written statement within 15days.The defence statement, if any, given by the employee shall be considered by DA before passing orders.
  • The record of proceedings should contain a statement of imputation of misconduct.
  • Defence statement of CSE. The order of the DA with the reasons for the same.

Rule :28-

Communication of Orders:

  • Orders made by DA under Rule 26 or 27 shall be communicated to the CSE who shall be supplied with a copy of Inquiry Report if any.
  • All communications under Rule 23,24,25,26 and 27 and copies of orders passed there under may be delivered personally if he is attending the office, otherwise they shall be sent by Registered Post to the address noted in the service record. If not possible shall be affixed on the notice board of the office in which CSE is employed.

Rule 29 –

Common Proceedings: Where 2 or more employees are involved common proceedings may be conducted by DA.

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