Super 30 GK questions on Marine insurance will be very helpful to all students and industry professionals. Before starting let’s discuss the origin of Marine Insurance with some more details.
Marine insurance is the oldest form of insurance. Lloyd’s coffee house was the first Marine insurance market. In 17th-century LIyods coffee house in London was the first Marine Insurance market. The coffee house owner, Edward Lloyd, helped to exchange shipping information with merchants, marine underwriters and all other associated directly or indirectly Marine insurance.
In 1907, the Indian mercantile Insurance company was set up to transact all classes of general insurance business. After that, The marine insurance Act was enacted in 1963.
‘Tonners’ and ‘Chinamen’ are obsolete forms of early reinsurance. A’tonner’ was simply a policy with limits mentioning of global tonnage loss a policy. If loss reached a limit of cross that limit, the policy paid out. whereas ‘chinamen’ was the opposite of tonners, i.e if loss not reached that limit, the policy paid out.
There are three common types of marine insurance. Firstly, hull, cargo and Protection & Indemnity. In the present form of Marine Insurance, the Aviation risks along with Marine(cargo) risks are also underwritten and this form is known as ‘MAT’.There are five Principles of Marine Insurance are Principle of Utmost Good Faith, Principle of Insurable Interest, Principle of Indemnity, Principle of Cause Proxima and Principle of Loss Minimization.
The below super 30 GK questions on Marine insurance will prove a stepping stone to all students and young aspirants of the Insurance industry.
Q-1- What is the meaning of ‘INCOTERMS’ ?
- International Commercial Terms
- International Container Terms
- International Contract Terms
- Indian Commercial Terms
Option-1 International commercial terms
Q-2- INCOTERMS regularly published by _____________
- International Conference on Communications
- International Chamber of Commerce
- International Commerce Centre
- International Cricket Council
Option-2 International Chamber of Commerce
Q-3- Where is ICC headquarter is located ?
- The Netherland
Option-4 Paris, France
Q-4- The term CIF means ?
- Cost Input Form
- Cost Input Freight
- Cover Insurance From
- Cost Insurance Freight
Option-4 CIF INCOTERMS means Cost, Insurance and freight
Q-5- In FOB term _______ will deliver goods till _______. Insurance will arrange by _______for onward journey.
- Buyer, Ship deck, Seller
- Seller, Port, Buyer
- Seller, Ship deck, Buyer
- Seller, Warehouse, Seller
Option-3 FOB means ‘Free on Board’, so the seller will deliver goods till ship deck, after that the buyer will arrange Insurance for onward journey.
Q-6- Who is responsible for Insurance arrangements in Marine Insurance ?
- C& F Agent
- Depends on Sale Contract
Option-4 It depends on the Sale Contract between Buyer and Seller.Use of INCOTERMS such as Free on Board (FOB), Cost and Freight (C&F), Cost Insurance and Freight (CIF) etc, the responsibility for arranging for insurance varies.
Q-7- In a marine cargo policy, the Insurable interest should exist?
- at the time of commencement of journey
- at the time of accepting proposal
- at the time of claim
- None of above
Option-3 At the time of claim under Marine policy, the Insurable Interest of claimaint should exist.
Q-8- what is the meaning of term ‘PPI’ in Marine cargo policy?
- Proof of payment indicator
- Policy Proof of Interest
- Pre & Post Inspections
- None of the above
Option-2 The Gambling Policies Act (1909) provides for the criminal punishment of persons involved in illegal wagering in marine insurance. ‘Policy Proof of Interest(P.P.I.)’or Honour policies are used and in the event of a claim the policy is taken as sufficient proof of insurable interest.
Q-9- Which one of the following is an extra charge under a marine cargo policy?
- Reconditioning cost incurred at an intermediary port
- Sue and Labour charges
- Salvage charges
- Port charges
Option-1 Reconditioning cost incurred at an intermediary port.
Q-10- Below documents are required to claim under Marine policy EXCEPT?
- Goods Invoice
- Packing List
- Bill of Lading
- LR Copy
Option-4 LR Copy meand ‘Lorry receipt’, which issued by transporter in case of Inland transit.