GIPSA Promotion Exam: Daily One-liners (Part 14)

GIPSA Promotion Exam: Daily One-liners (Part 14)

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.’


  • Some property removed from the burning building and that property damaged due to exposure to weather whether it is payable – Yes if removal was made in an endeavor to mitigate the loss
  • Lightning peril is included so that all damage so caused – whether fire results or not covered
  • Explosion/Implosion exclusion does not applicable to – Domestic boilers( if domestic boilers used for trade/manufacturing purpose then we can not treat that boilers ad domestic boilers )
  • What is flood – water escape from its normal confines , of a body of water, due to rise in its level, or to the breakdown of the barriers retaining it
  • A flood must involve – a large quantity of water
  • A formula is incorporated in the LOP Policy to calculate the loss is known as – Specification
  • Where the undertaking provides a service as in case of private nursing homes, hotels etc the policy can be called (LOP) as – Revenue policy
  • Gross fee Policy is available for – Professional persons such as Solicitors, CA’s and this policy provides Cover for gross fees, additional expenditure and legal and clerical charges for replacement of documents, books of accounts etc
  • Fire means –or ought not to be on Actual ignition or burning, of property which is not, fire, under accidental or fortuitous circumstances, so far as the insured is concerned
  • What is ignition – presence of flames is a pre-requisite for ignition
  • Goods legally purchased by the insured and insurance taken but smuggled to India and claim reported whether it is payable or not? – English case Geisman Vs Sun Alliance and London Insurance ltd 1977 it was held that the claim is not payable because goods held illegally


  • If one property insured under Electronic equipment and Fire policy the discount allowed is – 5%
  • Without Prejudice means – Claim is not admitted
  • FOES is an extension of – DOS policy
  • CPM Policy is an All risks policy with an exclusion of – Breakdown
  • If the actual erection period is shorter than the period indicated in the schedule – no refund of premium shall be allowed
  • Excess apply separately for – Storage & erection claims, Testing Claims, Maintenance Claims, Fire& AOG Peril claims
  • Time exclusion means – indemnity period commences after the expiry of the time exclusion immediately after the occurrence of the accident( there is no time exclusion in Fire LOP except under extension of failure of public electric supply, if taken )
  • Can Expenses of Gardening pertaining to factory and staff quarters can take in standing charges in MLOP – Yes
  • Can insured selectively choose Standing charges for insurance under MLOP – Yes
  • In MLOP Sum Insured is – Net profit + Standing charges = Gross profit
  • If actual Gross profit turns out to be lower the insured gets – refund of premium upto 50% of the premium originally paid
  • Loss assessment of MLOP provided in – Policy schedule itself


  • In excess of – Beyond, over and above a certain figure, usually referring to re-insurers proportion
  • Escalator Clause – A clause allowing for automatic adjustment of the insured value in certain non- marine material damage insurance
  • Excess of line Reinsurance – A reinsurance to cover that part of the original underwriters acceptance which is in excess of his retained line
  • Excess point – Term used in excess of loss reinsurance to determine the point at which the re-insurer comes on risk
  • Free on Board ( FOB) – Under FOB contract, the seller undertakes to deliver the goods over the ship’s rail, at which point the risk passes from the seller to the buyer. The seller responsibility is to pay all expenses until this point
  • What ‘Process clause’ says – which states that when the subject matter is undergoing any process, no claim will attach for loss or damage except by fire, burglary and theft
  • The valuation for all Marine risks is CIF + 10% but for Rejection risks – it is CIF value only
  • Special covers for Tea, Coffee, Cardamom and Rubber for tea the coverage is – from the time the green leaves plucked at the garden, and continues whilst being carried to, and stored and processed, at the factory, and further continues whilst in transit until solt at the Auction centre in India
  • The total period of storage in the above does not exceed – at various locations cannot exceed 120 days
  • Special cover for Tea, Coffee, Cardamom and Rubber are equal to All Risks policy but some exclusions are – for TEA policy loss or damage due to defect in the manufacturing process and for CARDAMOM policy excludes loss or damage due to vermin, insects, natural etc and SRCC risks can be covered at additional premium
  • LOSS OF LICENCE INSURANCE Covers – in the event of the person insured during the period of Insurance suffering any bodily injury whatsoever or suffering any illness whatsoever resulting at any time whether during or after the period of insurance ( but not beyond the period of 5 years after the expiry of the policy ) compensation will be paid


  • Section 152 deals with – Settlement between Insurers and Insured persons that means no settlement made by the insurer in respect of third party liability is valid unless the third party concerned in a party to the settlement
  • Section 153 states that – for the purposes of sections 150,151 and 152 a reference to “liabilities to third parties” in relation to a person insured under any policy of insurance shall not include a reference to any liability of that person in the capacity of insurer under some other policy of insurance
  • Section 155 provides – that if the insured person dies after incurring third party liability, the cause of action survives against the insured estate, or legal heirs or against insurer
  • Under Section 110 of Motor Vehicles Act, 1939 Claims tribunals have been constituted and called as– MACT
  • TP Property damage is – Rs.6000/- as per old act
  • Under section 165 of New act, 1988 the limit of Rs.6000/- for property damage for the purpose of claim tribunals jurisdiction has been removed
  • Chapter XI of Act, 1988 deals with – Fault Liability
  • Chapter X of Act, 1988 deals with – No fault Liability
  • From June, 1985 GIC with a view to ensuring speedy disposals of TP Claims have introduced – “LOK AYUKTA”
  • Section 166 of MV Act, 1988 provides that – an application for compensation arising out of an accident may be made
  • As per Sub-Section ( 3 ) of Section 166 had prescribed – 6 months from the date of accident as the time limit for filing the application for compensation. However, this section has been deleted by Act 54 of 1994 w.e.f. 14.11.1994 (OLD)
  1. 166 No application for compensation shall be entertained unless it is made within six months of the occurrence of the accident. (2019 Amendment)
  2. 166 the right of a person to claim compensation for injury in an accident shall, upon the death of the person injured, survive to his legal representatives, irrespective of whether the cause of death is relatable to or had any nexus with the injury or not (2019 Amendment)


  • Dacoity as per section 391 of IPC means – “where five or more persons conjointly commit or attempt to commit a robbery or are present and aid such commission or attempt, every one of them is said to commit dacoity”
  • First Loss Policies are not – Full value policies
  • First Loss policies are issued – where the total value of stocks to be insured exceeds, Rs.25.00 Lakhs
  • No First Loss policy is usually issued for less than – 25% of the total value of the property
  • The rating for First loss policies are – if the cover is 75% of full value, charge 90% of the premium for full value, if the cover is 65% full value, charge 80%, if the cover is for 50% of the full value, charge 70% and if the cover is for 25% of the full value, charge 50% of the premium for full value
  • Burglary policy does not cover – Ordinary Theft risk
  • Burglary ( private dwellings ) insurance policy covers – Theft risk also in addition to burglary and housebreaking
  • All Risks Insurance Policy in Burglary is covered –Loss or damage due to Fire or Burglary or theft or any other accidental or fortuitous circumstance and contains the single article limit and pair or set clause
  • Baggage Insurance Policy covers – accompanied personal baggage of the insured or member of his family, so lost or destroyed by Fire, Riot and Strike, Terrorist activity, Theft or Accident, whilst the insured is traveling on tour and/or on holiday, in all places and situations during the period of insurance and within the limits stated in the policy
  • If insured lost Umberalla, Consumable and perishable goods or leakage or spilling of liquids oils covered by Baggage policy – No all are exclusions


Rule 30-

Special Proceedings in certain cases:

Notwithstanding anything contained in rule 25,26 or 27 the penalties specified under rule 23 may be imposed in the following circumstances:

  • i)Employee convicted on criminal charge or on strength of facts arrived at by a judicial trial.
  • ii) & iii) when DA is satisfied that it is not reasonably practical or in the interest of security of the company it is not expedient to conduct an inquiry provided in these rules.
  • iv)where an employee has abandoned* his post the DA may consider the        circumstances and pass such orders as it deems fit. * 90days continuous absence.

Rule 31- 32

 Right of Appeal & Period of Limitation: An appeal may be preferred against an order within 3 months of receipt by CSE of the order appealed against.

Rule 33- Every person shall submit an appeal in his own name addressed to Appellate Authority and shall be complete in itself with all material statements and arguments. It should not contain any disrespectful or improper language.

Rule 34- Submission of Appeals – Through the authority, which made the order. A copy may be submitted directly to Appellate Authority.

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