MCQ
Insurance & Maritime Trade MCQ - Practice Questions with Answers
Solve 92 Insurance & Maritime Trade questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements regarding marine policies under the Marine Insurance Act, 1963: 1. A marine policy must specify the subject-matter insured and the risk insured against. 2. A marine policy need not specify the sum or sums insured. 3. A marine policy must be signed by or on behalf of the insurer. 4. A marine insurance contract is not admitted in evidence unless it is embodied in a marine policy in accordance with the Act. Which of the statements given above are correct?
Statement 1 is correct because the Act requires the policy to specify the insured subject-matter and risk. Statement 2 is incorrect because the policy must specify the sum or sums insured. Statement 3 is correct because signature by or on behalf of the insurer is mandatory. Statement 4 is correct because the contract must be embodied in a marine policy to be admitted in evidence.
Q2Consider the following statements regarding floating policy and double insurance: 1. A floating policy describes insurance in general terms and leaves the ship's name and other particulars to later declaration. 2. Unless the policy otherwise provides, declarations under a floating policy must be made in the order of dispatch or shipment. 3. Double insurance exists where two or more policies on the same adventure and interest make the sums insured exceed the indemnity allowed by the Act. 4. In double insurance, the assured is entitled to receive and retain sums in excess of the indemnity allowed by the Act. Which of the statements given above are correct?
Statements 1, 2 and 3 are correct. A floating policy leaves particulars for later declaration, such declarations normally follow dispatch or shipment order, and double insurance arises when overlapping policies exceed the statutory indemnity. Statement 4 is incorrect because the assured is not entitled to receive excess indemnity; any excess is held in trust for insurers.
Q3Consider the following statements regarding insurable interest under the Marine Insurance Act, 1963: 1. A person has an insurable interest when interested in a marine adventure. 2. The assured must be interested in the subject-matter insured when the insurance is effected, but not necessarily at the time of loss. 3. A partial interest of any nature is insurable. Which of the statements given above are correct?
Statements 1 and 3 are true. The Act links insurable interest to interest in a marine adventure and says a partial interest of any nature is insurable. Statement 2 reverses the rule: the assured must be interested at the time of loss, though not necessarily when the insurance is effected.
Q4Consider the following statements regarding components of the Sagarmala Programme: 1. Sagarmala includes reducing the cost of transporting domestic cargo through optimizing modal mix. 2. Port-linked industrialization under Sagarmala includes development of port-proximate industrial capacities near the coast. 3. Sagarmala is designed to replace port-led development with road-only inland corridors. 4. India's port system includes major ports and non-major ports administered by Central and State Governments respectively. Which of the statements given above are correct?
Statement 1 is correct because Sagarmala includes optimizing modal mix to reduce domestic cargo transport cost. Statement 2 is correct because port-proximate industrial capacities near the coast are part of the port-led industrialization logic. Statement 3 is incorrect because Sagarmala promotes port-led development and maritime-route advantages, not road-only replacement. Statement 4 is correct because the Ministry page describes major and non-major ports administered by Central and State Governments respectively.
Q5Consider the following statements regarding the Bharat Maritime Insurance Pool: 1. It is backed by a sovereign guarantee of ₹12,980 crore. 2. Its combined underwriting capacity is approximately ₹950 crore. 3. It covers only foreign-flagged vessels operating from Indian ports. 4. GIC Re has been designated as the Pool administrator. Which of the statements given above are correct?
Statement 1 is true: the pool is backed by a ₹12,980 crore sovereign guarantee. Statement 2 is true: gives its combined underwriting capacity as about ₹950 crore. Statement 3 is false: the cited coverage is for Indian-flagged or Indian-controlled vessels, not only foreign-flagged vessels. Statement 4 is true: GIC Re is the Pool administrator.
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6Consider the following statements regarding ports and shipping in India: 1. Major ports are under the jurisdiction of the respective State Maritime Boards or State Government. 2. Major ports are under the administrative control of the Ministry of Ports, Shipping and Waterways. 3. Non-major ports are under the jurisdiction of the respective State Maritime Boards or State Government. Which of the statements given above are correct?
7Consider the following statements regarding voyage and time policies under the Marine Insurance Act, 1963: 1. A policy insuring subject-matter from one place to another is called a voyage policy. 2. A policy insuring subject-matter for a definite period of time is called a time policy. 3. A contract for voyage and a contract for time cannot be included in the same policy. 4. A time policy made for any time exceeding twelve months is invalid. Which of the statements given above are correct?
8Consider the following statements regarding marine cargo insurance as explained by IRDAI's policyholder guidance: 1. A marine cargo policy offers cover for goods against transit risks. 2. An All Risks option offers a wider scope of coverage than Basic Cover. 3. The responsibility for arranging marine cargo insurance is fixed by IRDAI and does not depend on the sale contract. 4. Marine cargo insurance covers only sea transit, not road, rail or air transit. Which of the statements given above are correct?
9Consider the following statements about definitions in the Marine Insurance Act, 1963: 1. Marine adventure excludes any liability to a third party arising by reason of maritime perils. 2. Insurable property includes any ship, goods or other movables exposed to maritime perils. 3. Maritime perils include perils of the sea, fire, war perils and pirates. Which of the statements given above are correct?
10Consider the following statements regarding insurable interest, double insurance and disclosure under the Marine Insurance Act, 1963: 1. A marine-insurance contract by way of wagering is void. 2. A contract may be treated as wagering where the assured has no insurable interest and enters it with no expectation of acquiring such interest. 3. In double insurance, the assured may claim from insurers in any order, but cannot receive more than the indemnity allowed by the Act. 4. Before conclusion of the contract, the assured need not disclose material circumstances known to him unless the insurer asks a specific question. Which of the statements given above are correct?
11Consider the following statements regarding the Marine Insurance Act, 1963: 1. A marine insurance contract is an agreement to indemnify the assured against marine losses. 2. It may be extended to cover inland waters or land risk incidental to a sea voyage. 3. The Act came into force on 18 April 1963. Which of the statements given above are correct?
12Consider the following statements regarding the contents and execution of a marine policy: 1. A marine policy must specify the subject-matter insured and the risk insured against. 2. A marine policy need not specify the sum or sums insured. 3. A marine policy must be signed by or on behalf of the insurer. Which of the statements given above are correct?
13Consider the following statements with reference to the Marine Insurance Act, 1963: 1. Every lawful marine adventure may be the subject of a contract of marine insurance. 2. A contract of marine insurance by way of wagering is void. 3. The assured must be interested only when the insurance is effected, not at the time of loss. 4. The insurer under a marine insurance contract has an insurable interest in his risk and may reinsure it. Which of the statements given above are correct?
14Consider the following statements about the route scope and trade-continuity purpose of the Bharat Maritime Insurance Pool: 1. The Pool ensures access to affordable insurance for vessels carrying cargo from any international origin to Indian ports and vice versa. 2. The Pool is limited to coastal domestic voyages and excludes volatile maritime corridors. 3. The PM India release refers to vessels transiting volatile maritime corridors. 4. The cited need for the Pool includes maintaining sovereignty and continuity of trade when coverage is withdrawn due to sanctions or geopolitical tensions. Which of the statements given above are correct?
15Consider the following statements regarding floating policy and double insurance: 1. A floating policy describes the insurance in general terms and leaves the name or names of the ship or ships and other particulars to subsequent declaration. 2. Double insurance exists where two or more policies are effected by or on behalf of the assured and the sums insured exceed the indemnity allowed by the Act. 3. When an assured is over-insured by double insurance, he may receive sums above the permitted indemnity and retain the excess. Which of the statements given above are correct?