Insurance Questions Daily-53

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 exposure of Export Credit Guarantee Corporation of India i.e ECGC.

Questions related to about ECGC, coverage, policies type etc.

ECGC policies are of Credit policies and mostly taken by exporters outside of India. These policies are different from each other in terms of insurance coverage, purpose of undertaken by insured i.e required coverage of sales, single policy or an umbrella policy as per required by the insured.

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Q-1- If an export bill which was purchased /negotiated is not realized within reasonable time from the due date the bank should

  1. report to RBI.
  2. make a claim with ECGC
  3. reserve the bill from the export bill purchase portfolio.
  4. take further bills from the exporter only on collection basis.

Option-4 reserve the bill from the export bill purchase portfolio.

Q-2- If export cargo is lost in transit, the exporter should

  1. claim with ECGC
  2. seek refund of customs duty.
  3. claim under marine insurance.
  4. seek write off of post-shipment credit.

Option-3 claim under marine insurance.

Q-3- The standard policy of ECGC covers the risk of

  1. insolvency of the collecting bank
  2. buyers failure to obtain import license
  3. cancellation of the import licence in the buyers country.
  4. all the above.

Option-3 cancellation of the import licence in the buyers country.

Q-4- The standard policy of ECGC is issued

  1. 90% for both political and commercial risk.
  2. 60% for both political and commercial risk.
  3. 90% for political risk and 60% for commercial risk.
  4. 60% for political risk and 90% for commercial risk.

Option-2 60% for both political and commercial risk.

Q-5- The ERIC was renamed as

  1. ECPC
  2. ECPC
  3. EACP
  4. ECPG

Option-2 ECGC

Q-6- The small exporter’s policy of ECGC is issued to

  1. any exporter in the SSI category
  2. any exporter who is exempt from excise duty.
  3. an exporter with an expected turnover of Rs. 1crore.
  4. an exporter with an anticipated turnover in the next twelve months not exceeding of Rs. 50 lakhs.

Option-4 an exporter with an anticipated turnover in the next twelve months not exceeding of Rs. 50 lakhs.

Q-7- Which of the following information about the small exporter’s policy is wrong?

  1. The policy issued for 12 months.
  2. The premium payable is less than the standard policy.
  3. Risk coverage is 95% for commercial risks and 100% for political risk.
  4. None of above

Option-4 None of above

Q-8- The maturity factoring facility of ECGC protects the exporters against

  1. failure of the buyer to pay.
  2. risk normally covered by General Insurance.
  3. failure of the buyer to obtain authority as per the regulations of his country.
  4. none of the above.

Option-1 failure of the buyer to pay.

Q-9- Cover under the guarantee of ECGC is available to

  1. the bank against the default of the importer.
  2. the bank against the default of the exporter.
  3. the exporter against the default of the importer.
  4. the bank against the default of the importer and exporter.

Option-2 the bank against the default of the exporter.

Q-10- Pre-shipment advances granted in excess of FOB value of contract against duty drawback can be covered under

  1. packing credit guarantee
  2. export finance guarantee.
  3. export production finance guarantee.
  4. whole turnover packing credit guarantee.

Option-3 export production finance guarantee.

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