GIPSA Promotion Exam: Daily One-liners (Part 8)

GIPSA Promotion Exam: Daily One-liners (Part 8)

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.’


  • Computation of rate – Basic rate + 5% Reduction for Sprinklers – Reduction in rates for deletion of STFI/RSMD opted out + Tariff for Kutcha +/- Discount or loading for claims experience – Discount for FEA – Discount for Voluntary Deductible on final rate
  • Voluntary discounts available on standard fire policy and – on add on covers also
  • Escalation clause is applicable for – Buildings and Machinery only
  • Upto what % Escalation clause allows automatically in sum insured – up to 25% only
  • Can the work or Reinstatement carried out another site – yes
  • Can reinstatement of policies issued to cover stocks – No
  • Local Authorities clause is an extension of – Reinstatement value policy
  • Industrial All risks policy designed for – it is a package cover designed for industrial policies ( both manufacturing and storage facilities )with overall S.I. Rs.100.00Crores and above


  • Loss or damage due to total or partial immersion in tidal water under CPM – not covered by the policy
  • In Boiler Insurance – Explosion or Collapse arising in the course of ordinary working only is covered
  • Liability towards employees death arising out of and in course of employment – excluded under Boiler Insurance policy
  • Can premium adjustment made in Construction phase policies – Yes it can be refunded as per the sum insured adjustment depends upon the cost of construction at the end of the policy period
  • Under claim settlement cost of alterations, additions and or improvement are covered – no not covered
  • Can Contractor Plant and Machinery treated as Surrounding property – No Insured has to take separate policy for CPM


  • Limit per Bottom or per conveyance means – shipment declared under open cover should not exceed the stipulated amount
  • Basis of valuation – Prime cost of goods+ freight and other charges incidental to shipment + cost of Insurance+10% to cover profits
  • Location clause – limits the liability of the insurers at any one time or place before shipment
  • Limit is as per the Per bottom in Location clause but some times it may be agreed to an amount – up to 200%
  • Adjacent – Two or more risks next to each other which may or may not communicate
  • Average – In insurance terms, Average is applied at a time of loss, when the insured value is less than the actual value of property insured. The client carries a part of the claim in proportion to the amount of under-insurance
  • Avoidance – The right of an underwriter, in the event of a breach of good faith or delay in commencement of an insured voyage, to step aside from the insurance contract and to treat it as though he never accepted the risk
  • Betterment – Improvement in subject matter’s condition after repair
  • Burning cost – A loss ratio determined from the statistics of a number of preceding years in order to assess the premium to be charged to the reinsured in connection with excess of loss reinsurance


Private Car means

  1. Private car type vehicles used for social, domestic and pleasure purposes and also for professional purposes
  2. motorized three wheeled vehicles ( including motorized rickshaws / cabin body scooters used for private purposes only )
  3. Three wheeled vehicles ( including motorized rickshaws, cabin scooters used for private purposes )
  • Previously there is a “Goods carrying vehicles ( own goods )” & Goods carrying vehicles ( General Cartage ) but now – goods carrying vehicles is called as “ Goods carriage” only and there is no categorization of Public carrier and private carried
  • But Motor Tariff categorized for rating purpose as – Own goods Carrier and General Cartage Carrier.
  • In revised Tariff ( 1.7.2002) T.A.C. renamed as – Public Carrier and Private Carrier for rating purpose.

Passengers Carrying Vehicles

  • Four wheeled vehicles and three wheeled vehicles used for carrying passengers for hire or reward with carrying capacity not exceeding 6 passengers
  • Four or more Wheeled passenger carrying vehicles with carrying capacity exceeding 6 passengers and three wheeled passenger carrying vehicles with carrying capacity exceeding 17 passengers for hire or reward
  • Motorized three wheeled passenger carrying vehicles with carrying capacity exceeding 6 passengers but not exceeding 17 passengers for hire or reward
  • Motorized two wheelers used for carrying passenger for hire or reward


  • The earned Cumulative Bonus will not be lost if the policy is renewed – within 30 days after its expiry
  • The Insurer is not liable for Compensation under more than one of the sub-clauses ( a to f of benefit chart ) in – respect of the same period of disablement
  • Insurer is not liable for – any payment after a claim under sub clauses (a), (b), ( c ), or (d) of the policy has been admitted and settled


  • Rule 5: Scope of Employee’s service- Whole time of the employee in such capacity/places as directed from time to time.
  • Rule 6: Employees not to accept/seek outside employment.
  • Rule 7: Employees not to undertake part-time work.
  • Rule 8 : Obligation to maintain secrecy.
  • Rule 9: Evidence before committee or any authority.- not to criticize co’s policies.
  • Rule 10: Prohibition against participation in politics and standing for election.
  • Rule 11: Not to participate in any demonstrations.
  • Rule 12: Connection with Radio & Press.
  • Rule 13 :Not to accept any gifts in excess of Rs.500/- from relatives, in excess of Rs.250/- from personal  friends and others

GIPSA Daily One Liners Part 8 PDF

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