Tag: marine insurance

Questions Related to marine insurance

State the following statement is True or False:
A policy which covers all types of risks is comprehensive policy.

organization of commerce and management business risks and insurance marine insurance kinds of insurance re-insurance and double insurance

  1. True

  2. False

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Correct Option: A
Explanation:

Comprehensive policy covers losses arising from various kinds of risks arising from uncertain events such as, fire, theft, burglary. It is also known as an all-in-one-policy.

State the following statement is True or False:
A marine policy which is taken for a fixed period is time policy.

organization of commerce and management types of insurance marine insurance kinds of insurance re-insurance and double insurance

  1. True

  2. False

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Correct Option: A
Explanation:
Time policy is issued where the ship is insured for a definite period of time. The ship may pursue any course it chooses to, the policy would cover all the risks related to marine perils for the particular period of policy. 
A time policy is generally issued for one year, but it may contain a continuation clause to enable a ship to continue its voyage.

State the following statement is True or False:
A policy under which all assets (fixed and current) are insured is called blanket policy of Fire Insurance.

organization of commerce and management business risks and insurance marine insurance kinds of insurance re-insurance and double insurance

  1. True

  2. False

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Correct Option: A
Explanation:

Blanket policy is issued to cover more than one property or the assets in the property. Under such a policy, the fixed and current assets of a manufacturer or a trader available in different buildings can be covered with a single policy.

Select a word, term or a phase which can substitute the statements:
An insurance policy, covering goods of different types of lying at different places.

organization of commerce and management business risks and insurance marine insurance kinds of insurance re-insurance and double insurance

  1. Comprehensive policy

  2. Floating policy

  3. Fire policy

  4. None of these

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Correct Option: B
Explanation:

An insurance policy, covering goods of different types of lying at different places is known as floating policy. Payment for insuring the goods under floating policy can change from one period to another as the value of the insured goods cannot be calculated.