GIPSA Promotion Exam: Daily One-liners (Part 15)

GIPSA Promotion Exam: Daily One-liners (Part 15)

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.’


  • Waiver means – voluntary relinquishment of a known right
  • Estoppel means – legal bar raised by a persons own action against asserting a right that he once possessed, or making a choice that once was open to him
  • Waiver may be – express waiver or waiver by conduct
  • Ejusdem Generis rule means – of the same kind
  • Payment by mistake can recoverable – Yes
  • What is explosion – means a sudden and violent burst with a loud report and this is known as Concussion damage also
  • IAR Covers – Fire & special perils, Burglary, MBD/Boiler Explosion/Electronic Equipment(Material Damage), Business interruption ( Fire& allied perils ), Business Interruption( MBD – This is an optional cover )
  • Under Agreed Bank Clause the claim is payable to the bank whose receipt shall be a – complete discharge and binding on all parties insured
  • Consequential loss policy covers – Loss of profits and it is called as Business Interruption policy also
  • Forest fire covers – Loss due to burning , whether accidental or otherwise, of forest, jungles and clearing of lands by fire
  • Loss due to the impact of insured own vehicles covers by the fire policy – No if insured takes an ADD ON cover of Impact damage due to insured own vehicles then only it is covered
  • If the building collapses not due to insured perils the policy ceases automatically – after 7 days from the date of such collapse


  • Petrol Electrical Mobile JIB Cranes – similar as above except that the wheel of under- carriage are fitted with rubber tyros to be operated on roads
  • Overhead traveling cranes – usually found in large works, fitted with cross girder at each end whit an under-carriage and wheels
  • Goliath cranes – electrically operated
  • Portal cranes – found on wharfs or docks
  • Under CAR policy issued for construction of a road project , is to be extended for a further period – can be extended for the balance sum insured excluding the completed portion which is not put into service
  • A CAR policy can be given where civil works are more than – 50%
  • Which risk is not an add on cover under project policy – Debris of Uninsured proper
  • What is the meaning of Boiler – means any fired closed vessel or a combined container piping system in which steam is generated under pressure
  • What is the meaning of Pressure Plant – means any un fired closed container under steam, gas, or fluid pressure
  • Fuel Gas explosion means -explosion of ignited gases
  • Boiler should be operated by – Attendant holding valid certificate issued under Appropriate Boiler Act
  • In MLOP policy does insured to insured all the machinery – No it is not required and he selectively insure the important machines ( In LOP under Fire it is different )
  • Time exclusion under MLOP – Explosive, Petro, Power plants – 14 days, Fertilizer plants -14 days, Others – 7 days


  • It is prohibited to issue policies to – Transport companies, transport contractors, Freight Forwarders either in their own name or jointly with the owner of the goods, except on goods owned by them
  • Minimum annual estimated despatches ie. Annual turnover – shall be Rs.2.00 Crores
  • Special Declaration policy shall not be given – in joint names
  • SPD is not – Transferable and Proposal form is must
  • Sum insured under SPD shall not be less than – Previous year actual turnover
  • Mid term increase is allowed – only once and second time increase with the prior approval of the Regional Office
  • Comprehensive clause generally is used to extend the cover afforded by ICC(B) when required contains – “including the risks of theft, pilferage and/or non-delivery, fresh water and rain water damage, hooks, oils, mud, acid and other extraneous substances or heating and sweating and damage by other cargo”
  • “Excluding Shortage” from sound bags/packages unless shortage is caused by an insured peril” – this clause is generally used with bagged cargo in order to eliminate ordinary or inevitable loss
  • Institute Replacement Clause is generally used – whenever machinery, plant or equipment is required to be insured. This clause limits any claim for loss or damage to part or parts of the insured machine
  • How the above policy operates – it is an Annual Policy and the insured has to declare the total value and as per that the premium will be adjusted.
  • Package policy for Exporters can be issued to – exporters who have been granted an Advance License under the Duty Exemption Scheme by the Government Of India
  • How many sections are there in Package Policy for Exporters – Three sections one is Inward transit from Air/Sea/Road to warehouse. Section 2 covers Storage cum Processing and Section 3 covers Outward transit by Air/Sea/Road/Rail but Under section 2 the sum insured shall not be less than 20% of the sum insured under section 3 of the policy


  • Section 167 of MV Act 1988, says that – WC Claim can be made under WC Compensation Act, 1923 or can claim under provisions of Chapter X of MV Act, 1988 but not under both
  • Section 168 deals with – Award of the Claim Tribunal means the and and obligation of the claims tribunal to give prior notice of the third party’s application for compensation to the Insurer as also giving opportunity to the insurer of being heard
  • Section 169 deals with – Procedures and Powers of the Claims Tribunal
  • Section 171 deals with – empowers the claim tribunal to order that simple interest at such rates as it thinks fit shall also be paid along with the award of compensation
  • Section 173 deals with – Appeals means any person can go for appeal against claim tribunal within 90 days from the date of the award, prefer an appeal to the High Court (No appeal shall lie against any award of a claim tribunal if the amount in the dispute in the appeal is less than 100000/-( One lakh) (2019 Amnd.)
  • Chapter X,XI,XII of MV Act, 1988 is a piece of social legislation and its – provisions are designed to protect the rights of victims of road accidents
  • In Hit and Run cases the compensation is called as – “ex-gratia
  • Section 140 of MV Act, 1988 deals with – Liability without fault of the owner of the vehicle and for Death – Rs.50000/- and for Permanent Disablement Rs.25000/- ( Rs.15000/- and Rs.75000/- respectively in 1939 Act) ( LIABILTY WITHOUT FAULT SECTION 140 TO 144 IS DELETED UNDER MV ACT 2019 AMENDMENT)
  • Section 142 provides that Permanent disablement means – Permanent privation of the sight or either eye or the hearing of either ear, or privation of any member or joint, or (b) destruction or permanent impairing of the powers of any member or joint or (c) permanent dis figuration of the head or face (LIABILTY WITHOUT FAULT SECTION 140 TO 144 IS DELETED UNDER MV ACT 2019 AMENDMENT)


  • Losses due to fraud / dishonesty of an employee of the insured is not covered by the Money Insurance policy but – insurers cover such losses provided they are discovered within 48 hours of their occurrence
  • Theft of money from unattended vehicle – not covered by the Money Insurance Policy
  • Loss or damage by Acts of Terrorism in conjunction with the RSMD Cover can be covered – at an additional premium
  • Money retained in burglar resisting safe in the insured premises in ordinarily covered – only 48 hours after its arrival
  • Money in till or on counter in the insured premises during the insured business hours – can be covered at an additional premium
  • HOLD UP means – Hold up is a theft accompanied by violence or a threat thereof by any person other than an employee of the insured
  • All companies dealing in hazardous goods have to take a Public Liability policy as per the – Public Liability Insurance Act, 1991
  • As per the Public liability act policy the compensation in case of an accident is – Structured Compensation
  • Equal amount of premium collected under the PLI Act Policy goes to – Environment Relief Fund
  • Claim settling authority in case of claims under PLI Act Policy is– District Magistrate / Collector
  • Claims under PLI Policy are in the nature of – Legal Liability
  • Under Public Liability Industrial Risks Policy pollution risk is –to be covered as an ADD ON Cover
  • Premium rating for PLI Depends upon – Turnover, Limit of Indemnity, Number of Units covered, Risk group


  • Rule 35- Withholding of appeals-  If an appeal is made in violation of Rule 32&33 and is repetitive the appeal can be withheld by the DA. An appeal withheld should be returned to the appellant. If resubmitted within 1 month complying with Rule 33 should not be withheld. Appellant should be informed reasons for withholding.
  • Rule 36- Transmission of appeals,
  • Rule 37- Consideration of Appeals. All appeals should be disposed off as expeditiously as possible and in any event not later than 6months from the date of receipt of the appeal.
  • Rule 38 – Appeals against orders.
  • Rule 39 – Review
  • Rule 40 – Memorial addressed to CMD.
  • Rule-41 – Canvassing and outside influence.

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