Question of Marine and Aviation

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VINEET RANJAN Srivastava

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Jan 4, 2016, 3:14:30 AM1/4/16

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MARINE & AVIATION QUESTIONS

1 Time Charter hire is

(a) To charter a vehicle for a specified period

(b) To take a loan on vessel for a specified period

(d) To hire a vessel and pay after a specified time

2 A carrier under COGSA, 1971 is liable if

(a) Open or uncovered vehicle is used

(b) There is defective packing

(d) Livestock is carried

3 What is “ Slip”

(a) A mistake in the policy

(b) A kind of dres

(d) Evidence of contract of marine insurance

4 In marine insurance, the insurable interest should be there

(a) At the time of issuance of policy

(b) At the time of payment of claim

(d) None of the above

5 The wages of individual masters and workers are insurable in

(a) W C Policy

(b) Marine Cargo policy

(d) Aviation Policy

6 As per Marine Inland Transit Policy the Risk commences from the time

(a) The goods leave consignor’s warehouse

(b) The goods are being loaded on the vehicle

(d) All the above are correct

7 TPND is the common abbreviation used to denote

(a) Transit, piracy and non delivery

(b) Theft, piracy and non delivery

(d) Transit, pilferage and non delivery

8 Marine cargo insurance policies are

(a) Strict indemnity policies

(b) Pure indemnity policies

(d) Benefit policies

9 In Marine insurance, the term “Paint Brush Piracy” is used to denote

(a) A kind of piracy of the goods from the vessel

(b)

(d) Entry of pirates into the vessel with paints and brushes

10 As per Marine Insurance Act 1963, which of the following is not an Implied Warranty

(a) Lawful adventure

(b) Seaworthiness of the vessel

(d) Lost or not lost

11 “Subject to any express provision in the policy” is a standard phrase in Marine Insurance Act 1963 to denote that

(a) The Act is supreme

(b) The Assured is supreme

(d) The underwriter is supreme

12 For an export marine consignment which one of the clauses will be applicable

(a) ITC (A)

(b) ITC (B)

(d) None of the above

13 Duty and increased value insurance can be granted for the following consignments

(a) Export consignments

(b) Road risks in India

(d) None of the above

14 As per ICC (C) following loss or damage is not covered

(a) Fire

(b) Earthquake

(d) Washing overboard

15 Under marine insurance, cover may be granted for shipments which have commenced transit but may have been actually lost under the following provisions /clauses

(a) Sue and Labour clause

(b) Not to inure clause

(d) Losses not known clause

16 INCOTERMS are internationally accepted commercial terms defining respective roles of buyer and seller which of the following is odd term out

(a) CIF

(b) CFR

(d)WTO

17 Which of the following risk is/are covered under aircraft hull/ liability policy

(a) Accidental physical loss or damage to the aircraft

(b) Bodily injury / death to the passenger/s

18 Which of the following is to be taken into account while underwriting Marine Cargo Business

(a) Nature of Cargo

(b) Details of Conveyance

(d) All of the above

19 Which of the following insurance policies does not require a formal proposal form

(a) Marine Hull

(b) Fire

(d) Aviation

20 Under the Institute Cargo Clauses, the risk commence

(a) When invoice is received

(b) From the Time the Lorry receipt is issued

(d) None of the above

21 Which of the following represents the widest form of coverage?

(a) ICC(A)

(b) ICC(B)

(d) None of the above

22 For which of the following extra premium is charged?

(a) Vessel’s Overage

(b) Vessel’s under tonnage

(d) All the above

23 For which of the following term of sale, the buyer/ importer normally arranges the cargo insurance cover for the overseas transit

(a) CIF basis

(b) FOB basis

(d) None of the above

24 For Inland Transit, ‘Duration Clause’ limits the coverage to

(a) 7 days of arrival of consignment at destination town

(b) 7 days of arrival of consignment to the warehouse of consignee

(d) 60 days of arrival of consignment to the warehouse of consignee

25 What is not true for a Marine Open Cover

(a) Open cover is proof of an insurance cover

(b) Open cover gives the terms of cover during policy period

(d) All of the above

26 If a Marine consignment is being sent to an appreciating market, what clause can be attached to ensure that the appreciation of value of consignment is covered in case of loss?

(a) Duty clause

(b) Increased value clause

(d) None of the above

27 In case of various consignors are affected due to operation of a common peril, for saving a marine adventure; the loss would be apportioned by declaration of

(a) General average

(b) Particular average

(d) None of the above

28 What is the full form of sale term ‘FAS’

(a) Free Alongside Ship

(b) Free Alongside Steamer

(d) None of the above

29 A Marine cargo underwriter is expected to know

(a) Port facilities

(b) Shipping practices

(d) All the above

30 Under a marine Hull cover a loss can be declared as a CTL if

(a) The vessel is abandoned to discretion of the underwriters

(b) If more than one interest is involved in the salvage

(d) None of the above

31 In case of liquid cargo, the term “ullage” refers to

(a) Quantity that cannot be discharged

(b) Quantity that were destroyed

(d) Non standard packing

32 Sue and labor charges are usually paid

(a) In addition to damage to goods but limited by the sum insured

(b) In addition to damage to goods and can exceed the sum insured

(d) None of the above

33 Particular charges means

(a) Loss or damage caused by a sea peril insured against

(b) It is a general sacrifice to save the marine adventure

(d) None of the above

34 For covering various risks associated with port operation the following cover is an internationally accepted cover

(a) Property all risk policy

(b) Mega project policy

(d) Special contingency policy

35 One of the purpose of Draft survey is to

(a) Find out the weight of commodity on board the ship

(b) Find out the extent of damage to commodity while being unloaded from slip

(d) None of the above

36 What does the term “Phantom vessel” in maritime frauds denotes

(a) Nonexistent vessels said to be transporting goods

(b) Poor quality vessels transporting high value cargo

(d) None of the above

37 In a marine cargo policy, the insurable interest should exist

(a) At the time of commencement of transit

(b) At the time of acceptance of proposal

(d) At the time of proposal

38 Which of the following marine cargo policy is not assignable

(a) Marine cargo specific policy

(b) Certificate issued under open cover

(d) Annual policy

39 CIF Contract means

(a) Co-insurance form

(b) Cost input freight

(d) Cost incidental freight

40 The maximum indemnity available under a marine open policy in respect of a consignment awaiting shipment at the port is

(a) Total sum insured under open policy

(b) Limit per bottom

(d) Limit per Location

41 Which of the following is not a stamped document

(a) Open cover

(b) Open policy

(d) Special declaration policy

42 Running down clause in a marine policy relates to

(a) Age of the vessel

(b) Collision

(d) Age of the consignment

43 Liability under “Both to blame collision” clause of ICC (A) has a reference to

(a) Shipping Bills

(b) Lloyd’s firm

(d) Bill of Lading

44 Which one of the following is an extra charge under a marine cargo policy

(a) Auction fee for disposal of salvages

(b) Salvage charges

(d) Port charges

45 Which one of the following differentiates the salvage charge from the sue and labour charge

(a) Food expenses for crew members

(b) Incurred independent of any contract

(d) Expenses for extra fodder for animals on board

46 Which of the following is not a Trade Clauses

(a) Institute Replacement Clause

(b) Institute Bulk Oil Clauses

(d) Institute Coal Clauses

47 Overseas Transit Policy Institute Cargo Clauses ‘C’ the duration of cover comes to an end

(a) 30 days after landing at the port

(b) 45 days after landing at the port

(d) 90 days after landing at the port

48 The Institute clauses have been drafted by

(a) TAC

(b) Institute of London Underwriters

(d) GIC

49 In marine insurance parlance, ‘average’ means

(a) Premium

(b) Cost

(d) Loss

50 “Shut out Cargo” means a cargo which is

(a) Not loaded onto the ship due to late arrival

(b) Thrown out of the ship

(d) Rejected by the buyer

51 PPI in marine cargo policy means

(a) Pre & Post Inspections

(b) Policy Proof of Interest

(d) None of the above

52 Subrogation in marine insurance refers to transfer of

(a) Right of recovery

(b) Right of ownership

(d) None of the above

53 Proof of shipment is evidenced by

(a) Bill of Lading

(b) Bill of Exchange

(d) None of the above

54 Marine Policy offers

(a) Pure indemnity

(b) Strict Indemnity

(d) Modified form of Indemnity

55 Survey fees reimbursable to the insured in a marine policy to the extent of

(a) 0.25

(b) 0.5

(d) 1

56 Find odd one out

(a) Flag of convenience

(b) Polish Register of Shipping

(d) Bureau veritas

57 Which one of the following is an exclusion under ¾ th collision clause of ITC-Hulls

(a) Loss of life in other vessel

(b) Loss of life in insured vessel

(d) Both a & b above

58 In Marine hull policy the subject matter for insurance shall be

(a) Hull & Machinery

(b) Freight and Disbursement

(d) All the above

59 1/ 4 collision liability is covered by

(a) P& I club

(b) Hull Underwriters

(d) Reinsurance

60 For issuing a marine cargo policy,

(a) LR or R/R is a precondition

(b) LR or R/R reference number above is sufficient

(d) Undertaking from the consignor is sufficient

61 After settlement of a cargo claim

(a) Proceeding against the carrier by the insurer is simultaneous

(b) Only the insured has to proceed against carrier and to recover and remit to the insurer

(d) Recovery proceeding is not at all necessary

62 After issue of marine cargo policy shipment could not be effected due to expiry of the L.C. Insured seeks repayment of premium of Rs. 100000/-. In this case which of the following is appropriate

(a) Insurer decline refund of premium, saying policy has been issued already

(b) Retaining Min. Premium and effect refund for the balance amount is in order

(d) Substitute the premium for any subsequent transit

63 In an export policy, goods are sold in mid sea and the buyer changed the destination. Insured was getting refund from insurance company stating that the goods have not reached the destination stated in the policy. In such case which of the following could be appropriate.

(a) Refund is very well in order

(b) Refund should not be granted, as the shipment and transit had commenced

(c) As transit, as per policy deviated in the mid sea pro rata refund of premium according to the distance covered can be effected

(d) None of the above

64 General average means

(a) Age of the ship and its year of built

(b) It is the average age of the ship in a fleet

(d) None of the above

65 Particular charge in a hull policy means

(a) Loss or damage caused by a sea peril insured against

(b) It is a general sacrifice made in times of peril

(d) None of the above

66 Which branch of insurance is codified by way of an Act in India

(a) Marine Hull

(b) Marine Cargo

(d) None of (a) and (b)

67 In case of which of the following insurances, the stamp duty is borne by the insured

(a) Fire Insurance

(b) Personal Accident Insurance

(d) Health Insurance

68 Seller’s Contingency Policy cover can be issued in case of

(a) CIF contract

(b) FOB contract

(d) None of the above (a) and (b)

69 For an exporter having frequent exports which one of the following will be more useful

(a) Open policy

(b) Open cover

(d) Annual Marine Policy

70 In which of the following, war risk can be covered by paying extra premium

(a) Personal Accident Policy

(b) Health Insurance Policy

(d) Marine Overseas Transit Policy

71 In India Marine Cargo Insurance was detariffed in the year

(a) 1992

(b) 1993

(d) 1998

72 In case of Marine Insurance, which one of the statement is correct with respect to GRT of the ship

(a) Risk increases with the increase in GRT

(b) Risk decreases with the decrease in GRT

(d) The GRT does not play any role on risk

73 In case of Marine Insurance vessel approval is done by

(a) GIC

(b) GIPSA

(d) IRDA

74 Which one of the exclusion gets deleted in case where the full shipload cargo is transported through duly ‘approved’ vessel

(a) Loss/ damage/ expense caused by inherent vice or nature of the subject matter insured

(b) Ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear

(c) Loss/damage/expense arising from insolvency or financial default of the owner, managers, charterers or operators of the vessel

(d) None of the above

75 If the repair expenditure required to prevent actual total loss exceeds the value, it would be known as

(a) Actual total loss

(b) Particular Average

(d) General Average

76 In marine insurance, even a voluntary and deliberate loss can be paid under

(a) Total loss

(b) Particular Average

(d) General Average

77 With regard to stamp duty in marine cargo policy, which one of the following statement is correct?

(a) Different for sea voyages and for other than sea voyages

(b) Rate is same for all types of voyages

(d) Rate is different for rail and road voyages

78 For damage claim of CARGO monetary claim notice with the SHIP- OWNERS should be lodged within

(a) One month from the date of bill of lading

(b) Fifteen days from the date of arrival of cargo

(d) Three days from the date of arrival of cargo

79 Theft peril is covered under

(a) ICC C

(b) ICC A

(d) ICC I

80 Proximate Cause is

(a) Remote cause

(b) Indirect cause

(d) Other

81 General Average arises when property involved in common Maritime adventure

(a) The cost of vessel removal from one port to another

(b) Temporary repair of accidental damage effected during the course of voyage

(d) None

82 Bill of Entry is prepared for

(a) Excise duty

(b) Custom duty

(d) OCTROI

83 Which is not a General Average Claim?

(a) When Fire Breaks out on board the ship and in order to extinguish it water is poured on and chemicals are applied.

(b) When there is a collision with another vessel or other casualty and the cargo is discharged to enable the vessel to be repaired

(d) None of the above

84 Which of the following peril does not appear under ICC C

(a) Earthquake, Volcanic eruption or lightning

(b) Fire or explosion

(d) Discharge of cargo at a port of distress

85 The Marine Insurance Cover is available in the following forms

(a) Specific Policy

(b) Cover Note

(d) All of the above

86 Which document in the absence of specific policy helps the bank to authenticate the existence of insurance cover and relate it to the documentary bill?

(a) Certificate of Incorporation

(b) Certificate of Insurance

(d) None

87 Which of the following statement is not correct

(a) A valued policy is one, which specifies the agreed value of the subject matter insured

(b) The insured value is the amount specified in the policy as the value of the insured property

(d) None of the above

88 Which of the following does not form part of a marine adventure

(a) Ship

(b) Freigh

(d) None of the above

89 Which of the principal factors affect the rating of every cargo insurance

(a) Vessel

(b) Nature of cargo

(d) All the above

90 Which loss or damage is not covered under institute cargo clause ‘C’

(a) Fire & Explosion

(b) Overturning & Derailment of Land conveyance

(d) Washing overboard

91 Which peril is covered under marine hull policy

(a) Jettison

(b) Fire & Explosion

(d) All the above

92 GRT means

(a) Gross Rare Tonnage

(b) Gross Report Tonnage

(d) None of these

93 To whom marine policy cannot be issued

(a) Purchaser of goods

(b) Seller of the goods

(d) Bankers having financial interest

94 Identify incorrect statement

(a) All marine policies are not freely assignable

(b) Special declaration policy (SDP) is not assignable

(d) Marine policy is not assignable when goods are in bonded warehouse

95 Which of the following is not a term of sale in marine

(a) C & F

(b) CIF

(d) CFP

96 Identify correct statement

(a) Duty insurance cannot be granted

(b) Duty insurance can be granted to overseas seller

(d) Duty insurance can only be granted to the holder of import license

97 Identify incorrect statement

(a) All marine policies are valued policies

(b) Special declaration policies are valued policies

(d) None of the above

98 State the correct statement among the following

(a) Marine cargo policy is transferred by way of payment of additional premium

(b) Marine policy is transferred only after obtaining fresh proposal form

(d) None of the above

99 Which of the following statement is correct

(a) Insurable interest should exist at the time of effecting marine insurance

(b) Insurable interest need to exist only at the time of loss

(d) None of the above

100 Which of the following is false in relation to marine cargo insurance

(a) Claim survey fees are payable by insurers only if the claim is payable

(b) Under every marine policy for export shipments, a certificate of insurance is issued

(d) None of the above

101 Which of the following policies are freely assignable without the consent of insurers

(a) Marine cargo

(b) Burglary

(d) Fire

102 Which of the following risks are automatically covered without extra premium under Institute Cargo Clause ‘A’

(a) Breakage only

(b) Leakage only

(d) Breakage & Leakage

103 If loss or damage is not apparent at the time of taking delivery from ocean carriers written must be given to the carrier’s representative within days of delivery

(a) 7

(b) 30

(d) 3

104 Which of the following General Exclusions under Institute cargo clauses can be covered at extra premium under ICC (B) & (C) clauses

(a) Malicious damage

(b) Inherent vice

(d) Ordinary loss in weight

105 Which of the following statements is true? Statement A: Marine cargo policies are valued policies. Statement B: Marine Hull policies are valued policies.

(a) Both

(b) A only

(d) B only

106 Which of the following statements is false in relation to marine cargo insurance? Statement A: The entire marine cargo is governed by tariff or .Statement B: Special storage insurance is granted in conjunction with inland transit policy.

(a) A only

(b) B only

(d) Neither

107 Which of the following covers is suitable for regular export/import shipment?

(a) Open cover

(b) Special Declaration policy

(d) Duty insurance

108 Which of the following insurances is not relevant to inland transit?

(a) ‘Increased value’ insurance

(b) Special storage risks insurance

(d) Annual policy

109 Which of the following document is common to claims processing under marine import policies and inland transit (Rail/Road) policies?

(a) Invoice

(b) Copy of protest

(d) Lost Overboard certificate

110 Aviation Refuelling Liability Insurance Policy Covers-

(a) Liability for loss of or damage to property of the Insured or property in the custody or control of the Insured other than Aircraft of others while being fuelled or refueled by the Insured.

(b) Any Ships, Vessels, Craft or Aircraft owned, chartered, used or operated by or on account of the Insured.

(c) Liability for bodily injury to any person, who at the time of sustaining such injury is engaged in the service of the insured or acting on his behalf, or liability for which the Insured or his Insurer may be held liable under any workmen’s compensation, unemployment compensation or disability benefits law or similar law.

(d) damages for bodily injury or property damage caused by an occurrence during the period mentioned in the Schedule and arising out of Insured’s business as suppliers and/or refiners of Aviation product including the manufacture, sale or distribution of Aviation fuel and lubricants

111 Aviation War and Allied risk policy may be cancelled by either Insurers of the Insured giving notice to become effective on the expiry of-

(a) 07 days from 23.59 hours GMT on the day on which such notice is given.

(b) 15 days from 23.59 hours GMT on the day on which such notice is given.

(d) 30 days from 23.59 hours GMT on the day on which such notice is given.

112 Modern aircraft flew in the year —

(a) 1906

(b) 1903

(d) 1956

113 Pioneer of the modern aircraft-

(a) Left Brothers

(b) Wright brothers

(d) Yusuf Brothers

114 Pioneer in Aviation Industry in India —

(a) J R D Tata

(b) M P Birla

(d) Ratan Tata

115 First aircraft flew for —

(a) 12 minutes

(b) 30 minutes

(d) 12 second

116 Before 1953 the number of Airlines was —

(a) 6

(b) 9

(d) 6

117 Paris Convention 1919 discussed the issues-

(a) Liability of the Airlines

(b) Third Party Liability limits

(d) Passengers & baggage Liability

118 Rome Conventions 1933 & 1952 dealt with

(a) Fitness of the aircraft & navigation

(b) Airspace above the country