GIPSA Promotion Exam: Daily One-liners (Part 11)

GIPSA Promotion Exam: Daily One-liners (Part 11)

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.’


  • The sum insured for Earthquake add on cover will be same as in Fire policy except – for the value of plinth and foundations of the buildings
  • Spoilage Material Damage cover relates to – Loss of stock in process and to machinery, containers and equipment( including cost of removal of debris and cleaning )
  • Leakage and contamination extension is available for – Oils and Chemicals only not to any other property
  • Excess under Leakage and Contamination clause is – 1% on each tank minimum Rs.60000/- each loss
  • Mid term increase of S.I. Is possible and premium – to be collected under pro-rata basis
  • Two factories are in same compound and Location detached then premium – chargeable is “per se”
  • Dwelling houses inside the factory the premium charged is – as per dwelling rate only
  • In one compound many risks are there then premium – highest rate of risk premium will be charged if location not detached


  • Sum Insured under Section 3 i.e Increased Cost of Working under EEP Policy the sum insured arrives as – the indemnity limit per hour X indemnity period is the maximum sum insured
  • The indemnity period in question no.44 is – commences with the putting into use of the substitute equipment may be up to 12 weeks, 26,40,or 52 weeks
  • The loss payable under ALOP is admissible – if claim admissible under CAR/EAR insurance covering the contract works
  • ALOP is a – Highly specialized type of policy
  • Deterioration of Stock policy can be called as – Stock Spoilage policy
  • The sum insured should be under Boiler policy is – current replacement value
  • Can MLOP policy be given alone – No it should be issued along with Machinery Insurance policy
  • Can claim payable under MLOP policy claim is not admissible under MBD policy – No it is not payable
  • ALOP means – Advance loss of profits policy
  • What is the difference between MLOP & ALOP – MLOP will be issued along with MBD/Boiler policy but ALOP issued in advance of the actual commencement of business


  • Free on Board ( FOB Contract ) Responsibility lies with – The seller is responsible till the goods are placed on board the steamer. The buyer is responsible thereafter. He can get the insurance done wherever he likes.
  • Free on Rail ( FOR Contract ) Responsibility lies with – The provisions are the same as in FOB and this is mainly relevant to Internal transactions
  • Cost & Freight ( C&F Contract ) responsibility lies with – buyers responsibility normally attaches once the goods are placed on board. He has to take care from that point
  • Cost, Insurance& Freight ( CIF Contract ) responsibility lies with – in this case , the seller is responsible for arranging the insurance. He includes the premium charge as part of the cost of goods in the invoice
  • The normal practice in export/import trade is for the exporter to ask the importer – to open a letter of credit with a bank in favour of exporter
  • FCAR – Free of Claim for accident reported: No claim is payable under the insurance if it arises from an accident which is known to have occurred before acceptance of the risk
  • Warehouse keepers – Receive the goods for the purpose of storage in their warehouses
  • Shipping agents – Many merchants prefer to put their shipments in the hands of a shipping agent who, for a consideration, undertakes to attend to the transit operation
  • AVIATION HULL “WAR AND ALLIED PERILS” POLICY Covers – loss or damage to the Aircraft nominated in the schedule against claims excluded from the Assured’s Hull “All Risks” policy


  • Provisions of Chapter VIII of the 1939 Act have now been covered under – Chapter XI & XII of the New act
  • Chapters X, XI, XII of Motor Vehicle Act 1988, exclusively deals with – Compulsory Third Party Insurance
  • Articulated Vehicle” means – A motor vehicle to which a semi-trailer is attached
  • Certificate of Registration” means – The certificate issued by Competent Authority to the effect that a motor vehicle has been duly registered in accordance with the provisions of the Act (Chapter IV of the Act )
  • Conductors License deals by – Chapter III of the Act
  • “Contract Carriage” means – a motor vehicle which carries passenger ( s ) for hire or reward and is engaged under contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein, and entered into by a person holding a permit in relation to such vehicle or any person authorized by him in this behalf on a fixed or agreed rate of sum on time basis and included a maxicab, motorcab.
  • “Stage carriage” means – a motor vehicle constructed or adapted to carry more than six passengers excluding the driver for hire or reward a separate fares paid by or for individual passengers either for the whole journey for stages of the journey


  • PA Policy is – a BENEFIT policy and this means that in the event of happening of an insured event a specified sum of money is payable irrespective of the amount of pecuniary loss actually suffered by the insured or dependents, which in any case can not be measured
  • CONTRIBUTION does not apply in PA – and insured can have many policies and is entitled to the full benefits of each policy
  • But weekly compensation will be shared by – the all insurance companies if the total sum insured exceeds Rs.3.00 Lakhs in respect of T.T.D
  • Subrogation like contribution does not apply to contracts – which are not of strict indemnity, but in Videsh Sanchar Yatra Mitra Policy loss to Baggage section is having subrogation clause and if after payment of loss the baggage recovered it belongs to the insurance company
  • If insurer disclaim then the insured should file a suit in court – within 12 months from the date of such disclaimer
  • Special features of PA Cover are – The cover is for 24 hours and on a worldwide basis, Travel as a passenger in a licensed standard type of aircraft is automatically covered
  • How many classification of Risk groups are there – Risk group I: Accountants, Doctors, Lawyers etc , Risk Group II: Builders, Contractors, Engineers engaged in superintending functions , Veterinary Doctors, paid drivers , Risk Group III: Persons working in underground mines, explosives, magazines, Circus Personnel etc


Rule 21:

  • Subsistence Allowance: Granted to an employee under suspension
  • 50% of gross emoluments – basic, DA, CCA, HRA, HSA, QP, PA drawn immediately prior to the date of suspension up to 6 months. (The amount would not vary and increment, change of DA would have no impact on SA)
  • > 6months – may be increased to 75% of the above, if suspension has not been prolonged for reasons directly attributable to the employee, OR may be reduced to 25% of the above if suspension is prolonged for reasons attributable to him.

Rule- 22:

Treatment of period of suspension: When the suspension of the employee is unjustified or an employee who has been dismissed, removed or suspended is reinstated – the competent authority (CA) whose decision shall be final, may grant to him for the period of absence from duty:

  • if he is honourably acquitted, the full and pay and allowances to which he would have been entitled but for penalty less the subsistence allowance.
  • if otherwise, such proportion of pay and allowances as CA may prescribe.
  • If treated under A- the period of suspension would be treated as duty. If under B- the period would not be treated as duty, but CA may grant leave for the period to the extent admissible to the employee. Any period of absence, which has not been, treated as either duty or leave shall count as service for any purpose.

Rule 23-

  • Penalties : may be imposed by CA & categorized as Minor and Major
  • Minor: Censure, withholding of one or more increments for a specified period, Recovery from pay whole or part of pecuniary loss caused to the co.
  • Major: Withholding of one or more increments permanently, Reduction to a lower service or post or to a lower timescale or lower stage in the time scale. Compulsory Retirement, Removal from service without disqualification for future employment, Dismissal.

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