Bharat Re-Insurance Brokers Pvt.Ltd.

<CPD/RR&TLA>

SUBJECT LEVEL NO. OF QUESTIONS DURATION TEST ADMINISTRATION

FIRE INSURANCE PART 1 GROUP A - BEGINNERS 10 QUESTIONS ( ALL TO BE ANSWERED) 1 HOUR BRANCH HEAD / DESIGNATED OFFICIAL AT BRANCH

1. Do the insured have an option to choose different methods of valuation for his assets under a fire
policy? if so, explain those options in brief.

2. What is FLEXA cover?

By choosing FLEXA [fire, lightning, explosion, aircraft] policy you can insure your property against the following basic risks: fire and lightning explosion, excluding nuclear aircraft fall and impact

3. What is salvage? what is debris? define in simple terms.

Salvage - The act of saving imperiled property from loss. Debris - clean-up costs associated with damage to a property

4. You have a fire policy. your neighbour also has one. There is a fire accident in your neighbour's premises. Your flat is also damaged in the fire fighting. Which policy will pay your damages?

5. you have imported a consignment of industrial cleaners for 50 lakhs. Your sale price is 70 lakhs. Is it possible to insure this consignment of goods for 70 lakhs under the fire policy?

6. Why kutcha construction is charged additional premium?

Bharat Re-Insurance Brokers Pvt.Ltd. <CPD/RR&TLA> Additional premium is charged because Kutcha construction has the following limitations such as, water penetration,erosion of walls at level by splashing of water from ground surfaces, attack by termites and pests, high maintenance requirements
7. I have a factory manufacturing Bulk drugs the value of my building is Rs.8

Crores, plant and machinery is Rs.20 Crores and stocks value is Rs.15 Crores . Please advise me the premium that you will quote for standard fire and special perils policy covering all the above mentioned subject matter. No add on covers required. The discount allowed by insurer is 60% on the tariff rate of premium. Please quote premium with service tax indicated separately. 8. Can you name any three add-on covers available under the Fire Tariff and write in short as to what is covered there ? 1. Floater Policy - Single sum insured for all the stocks in more than one location, Stocks kept in specified location only can be covered. 2. Declaration Policy - To take care of frequent fluctuations in stocks/stock values, Declaration Policies are issued 3. Floater Declaration Policy- Floater Declaration policies can be issued subject to a minimum sum insured of Rs 2crores and compliance with the Rules for Floater and Declaration Policies respectively except that the minimum retention shall be 80% of the annual premium. 9. We own a fleet of delivery trucks and one day while loading goods inside our factory, one of our own company delivery trucks hit against a godown shed and the whole godown shed collapsed causing damage to building and stocks. The value of the building insured is Rs.1.25 Crores ( market value) and goods damaged are worth Rs.3 crores ( cost without margins) . Please explain under what circumstances the claim will be considered. 10.Our factory is located a few kilometers away from a nuclear power station and along with our Fire insurance we wanted to protect ourselves against risk of nuclear radiation caused by damage to the nuclear facility due to missile attack due to war between India and a neighbouring country. Please indicate the rate of premium for covering these two risks. *************************************** NOTE : Please type in your answers below each question in this sheet itself, save the filled in answer paper with file name as < subject of the test followed by participant first name followed by location name> ( with space) and email it immediately after your completion of the test to the following mail ID bharatre.cpd@gmail.com . For example if the test if Fire- Part 1 , your first name is Sandeep and the location is Vadodara then the file name has to be firepart1 sandeep vadodara .

Bharat Re-Insurance Brokers Pvt.Ltd. <CPD/RR&TLA> Best wishes !