Insurance Questions Daily-51

Insurance Questions daily proved very useful to all Insurance aspirants or insurance savvy who regularly seek insurance knowledge.   

These 20 Insurance GK MCQs are all about Engineering and Project insurance policies.

Questions related to Contractor’s All Risk(CAR) policy, Erection All Risk(EAR)policy, Marine Cum Erection(MCE), Advance Loss of Profits(ALOP) policy of General Insurance. For an upcoming project the selection between Contractor’s All Risk(CAR) policy or Erection.

Basically appropriate selection between these policies depends on percentage of civil work in comparison of Plant and machinery work. In case there are more civil work then Contractor’s All Risk(CAR) policy and in case of there are more of Plant and Machinery work then Erection All Risk(EAR) will be more suitable and suggested.

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Q-1- What does C.A.R.Policy stands for ?

  1. Combined All Risks
  2. Contractors All Risks
  3. Construction All Risks
  4. Contractors Average Risk

Option-2 Contractors All Risks policy

Q-2- Which of these has no connection with the calculation of Sum Insured of the C.A.R.Policy ?

  1. Rent
  2. Freight
  3. Customs duties
  4. Materials & Wages

Option-1 Rent

Q-3- In ____________ policy, the cover starts from the commencement of work or after unloading of the property insured at the site, whichever is earlier.

  1. C.A.R
  2. E.A.R
  3. M.C.E
  4. C.P.M

Option-1 C.A.R. i.e Contractor’s All Risk Policy

Q-4- Contractors All Risk policy covers loss / damage to every property on construction site for all the perils, except __________ .

  1. Fire
  2. Theft
  3. Flood
  4. Earthquake
  5. Specific exclusions

Option-5 Specific Exclusions

Q-5- C.A.R. policy is concerned with Contractors involving ___________ .

  1. maintenance of CAR
  2. civil engineering works
  3. construction of machinery
  4. construction of equipments

Option-2 civil engineering works

Q-6- Erection All Risks(EAR) insurance policy is also known as _____________

  1. Storage-cum-Erection Policy
  2. Social-cum-Environment Policy
  3. Social Construction Erection Policy
  4. Storage Construction Erection Policy

Option-1 Storage-cum-Erection(SCE)Policy

Q-7- What is the special feature of E.A.R policy that differentiates it from the C.A.R policy ?

  1. Protects the interests of Contractors
  2. Concerned with Civil Engineering works
  3. Sum Insured is equal to estimated erected value
  4. Testing & commissioning of machinery is covered

Option-4 Testing & commissioning of machinery is covered

Q-8- What is the expanded form of M.C.E policy ?

  1. Marine-cum-Erection Policy
  2. Machinery-cum-Erection Policy
  3. Marine-cum-Engineering Policy
  4. Machinery-cum-Engineering Policy

Option-1 Marine-cum-Erection Policy

Q-9- Under M.C.E policy, a separate Marine Transit policy is taken for covering __________.

  1. Raw material
  2. Stock-in-trade
  3. Local equipments
  4. Imported equipments

Option-4 Imported equipments

Q-10- In which policy, the cover starts when the equipment leaves the manufacturers warehouse and ends at erection, testing and commissioning ?

  1. C.A.R.
  2. E.A.R.
  3. M.C.E.
  4. C.P.M.

Option-3 Marine Cum Erection(M.C.E) policy

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