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2020 NECO INSURANCE OBJ AND ESSAY QUESTIONS AND ANSWERS
INSURANCE OBJ
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(7a)Business Interruption Insurance is a form of business insurance to protect companies against the loss of income after events (disasters) that temporarily interrupt business operations.
(4a)
insurance contract is a document representing the agreement between an insurance company and the insured. Central to any insurance contract is the insuring agreement, which specifies the risks that are covered, the limits of the policy, and the term of the policy.
(1a)
proximate cause is an event sufficiently related to an injury that the courts deem the event to be the cause of that injury.
(7a)
Business interruption insurance, also known as business income insurance, is defined as a form of insurance that covers lost income when your business temporarily closes due to a fire, natural disaster, or other covered incident.
(7b)
(Choose any four)
(i)Voyage Policy.
(ii)Time Policy.
(iii)Mixed Policy.
(iv)Valued Policy.
(v)Port Risk Policy.
(vi)Wager Policy.
(Choose any three)
(i)Voyage Policy: A voyage policy is that kind of marine insurance policy which is valid for a particular voyage.
(ii)Time Policy: A marine insurance policy which is valid for a specified time period – generally valid for a year – is classified as a time policy.
(iii)Mixed Policy: A marine insurance policy which offers a client the benefit of both time and voyage policy is recognized as a mixed policy.
Open (or) Unvalued Policy: In this type of marine insurance policy, the value of the cargo and consignment is not put down in the policy beforehand. Therefore reimbursement is done only after the loss of the cargo and consignment is inspected and valued.
(iv)Valued Policy: A valued marine insurance policy is the opposite of an open marine insurance policy. In this type of policy, the value of the cargo and consignment is ascertained and is mentioned in the policy document beforehand thus making clear about the value of the reimbursements in case of any loss to the cargo and consignment.
(v)Port Risk Policy: This kind of marine insurance policy is taken out in order to ensure the safety of the ship while it is stationed in a port.
(vi)Wager Policy: A wager policy is one where there are no fixed terms for reimbursements mentioned. If the insurance company finds the damages worth the claim then the reimbursements are provided, else there is no compensation offered. Also, it has to be noted that a wager policy is not a written insurance policy and as such is not valid in a court of law.
(7c)
(Choose any four)
(i)Kind of risk involved
(ii)Type of property to be insured
(iii)Content of the property
(iv)Occupational hazards
(v)Exposure hazards
(vi)Time element
*(1a)*
proximate cause is an event sufficiently related to an injury that the courts deem the event to be the cause of that
injury. There are two types of causation in the law: cause-in-fact,
and proximate cause.
*(1b)*
(i)Provide safety and security
(ii)Generates financial
resources
(iii)Life insurance encourages
savings
(iv)Promotes economic growth
(v)Medical support
(vi)Spreading of risk
(vii)Source of collecting funds
(viii)Development of Social Sectors
*(1c)*
(i)There must be a large number of exposure units.
(ii)The loss must be accidental and unintentional.
(iii)The loss must be determinable and measurable.
(iv)The loss should not be catastrophic.
(v)The chance of loss must be calculable.
(vi)The premium must be economically feasible.
(vii)Fortuitous loss.
(viii)Non-catastrophic loss.
*5a)*
Aviation insurance is insurance coverage geared specifically to the operation of aircraft and the risks involved in aviation
*(5c)*
(Pick 3)
1. PUBLIC LIABILITY INSURANCE
Simply put, the public liability insurance covers anything that can be damaged by a plane. This also includes for example ground support equipment and airport facilities such as hangars. The plane itself or anything or anyone that is inside it isn’t covered, though.
2. PASSENGER LIABILITY INSURANCE
Since the passengers on a plane aren’t covered by the typical public liability insurance this insurance protects (mortally) injured people aboard. Not every plane in the sky is carrying passengers, so this insurance is usually only mandatory for commercial aircraft.
3. GROUND RISK HULL INSURANCE NOT IN MOTION
There are usually three possible situations a plane can be in: Either it flies, it rolls on the ground or it stands on the ground (take-off and landing are considered flying, too). This first coverage protects the aircraft when it is standing still and presumably incapable of causing self-inflicted damage. Damages caused by natural hazards and disasters like floods, fires, storms or collapsing hangars are just as covered by this insurance as accidents with uninsured vehicles or other planes.
4. GROUND RISK HULL INSURANCE IN MOTION
On the ground aircrafts are gentle giants. Still, parking, driving to the gate or being towed by an aircraft tug can lead to minor or even major accidents. That’s where the ground risk hull insurance in motion comes in.
5. IN-FLIGHT INSURANCE
the in-flight insurance is an allrounder. It covers not only any damage that might occur in-flight but also in every other situation on the ground – whether in motion or not.
(4a)
insurance contract is a document representing the agreement between an insurance company and the insured. Central to any insurance contract is the insuring agreement, which specifies the risks that are covered, the limits of the policy, and the term of the policy.
(4b)
(i)Private Car Insurance
(ii)Commercial Vehicle Insurance
(iii)Two Wheeler Insurance
(iv)Third party insurance
(i)Private Car Insurance; Private CAR INSURANCE should be first thing to be
taken after purchasing a Car. A financial safeguard for a large variety of situations, Private Car Insurance is one of the most important purchases to make. Whether it is a natural disaster such as an earthquake or flood; or somebody damages or steals the car, a Car Insurance takes care of it all.
(ii)Commercial Vehicle Insurance; To keep the business going, it is imperative for business owners to have the vehicles owned by them insured. General insurance providers offer packaged COMMERCIAL VEHICLE INSURANCE policies which protect businesses from potential financial loss
to the vehicle arising out of accidental loss or damage, the legal liability
towards third-parties for bodily injury, death or property damage on account of any accident involving the vehicle.
(iii)Two Wheeler Insurance: As soon as you purchase a two wheeler, getting
TWO WHEELER INSURANCE is a mandatory requirement as per the Motor Vehicles Act 1988 and Motor Vehicle Amendment Act 2019. It provides coverage for from any financial loss to the vehicle due to accidental loss or damage, the legal liability towards third-parties in event of bodily injury, death or property damage. It also offers coverage in event of damage due to natural calamities or manmade events.
(iv)Third-Party insurance: Third-party insurance is one of the most common types of vehicle insurance; in which only damages & losses caused to a third-party person, vehicle or property are covered.
(6i)
Plant All Risk Insurance; This Recall how we made reference to ‘machinery and plant usage’ in our definition of Engineering Insurance? Simply put, this insurance policy is streamlined to cater to loss and unforeseen damages of operational tools. Construction equipment and operational machinery are susceptible to wear and tear due to their exposure to extreme environmental conditions.
(6ii)
Contractor’s All Risk; Cover You guessed right with the title and its description it covers contractors and provides financial protection against damage or loss incurred during construction projects. Like the other forms of Engineering Insurance we have described, the Contractor’s All Risk Cover provides cover against loss or damage to plants and equipment.
(6iii)
Erection All Risk; Here, the risk covered deals with the erection of machinery or plant structures. Other than it includes, installation activities, commissioning and testing of machinery. The context of the equipment we have been describing since inception is engineering-inclined as we have initially established.
(6iv)
Machine Breakdown Policy; As the name implies, the Machine Breakdown Policy provides cover losses for sudden or unexpected damage of equipment especially while they’re still in use. Both internal and external damages are covered in the Machine Breakdown Policy. Some of these internal damages could include lubrication defects, electrical damage, overheating and the like.
(6v)
Boiler and pressure vessel; This type of insurance provides protection against the dangers of explosion and
collapse of boilers and pressure vessels.
The policy is widespread in markets
influenced by the United Kingdom. It is
not so well known in other markets
where cover is more often provided by
way of a Machinery Breakdown and Fire
policy.
The cover embraces material damage to
boilers and pressure vessels. In addition,
it includes cover for material damage to
other property belonging to the insured,
third party property damage, and fatal or
non-fatal injuries to third parties not
employed by the insured.
Categories: NECO