3. a) What is average condition?

Average condition: 3) Special condition of average:

under insurance
Contribution:
under insurance

Contribution & Subrogation are

corollary to the principle of indemnity.
Average 6. a) Briefly discuss the scope of marine insurance.
b) Describe the various forms of average conditions used in
Property Insurance.

Average
1) Pro-rata condition of average
c) State the circumstances in which each/average condition is
2) Condition of average
applied.
3) Special condition of average
4. a) What is valued policy?
Valued policy:
1) Pro-rata condition of average:

Pro-rata condition of Average

Indemnity

Indemnity bill of lading

freight
b) Do you think that the valued policy is a deviation from the
principle of indemnity?

7. a) Explain the term “abandonment” in relation to marine

insurance.
2) Condition of average:
Abandonment:
Indemnity
constructive total loss
Average
Average c) Subrogation and Contribution are corollary to the principle of
indemnity – Explain. total loss Abandonment

Subrogation & Contribution Indemnity

Indemnity
Abandonment

Subrogation & Contribution

Subrogation:
b) When a notice of abandonment is required? What is its b) Discuss the salient features of the Machinery breakdown 11. a) Distinguish between Theft, Burglary and Malicious
purpose? insurance. damage cover.
Abandonment Machinery breakdown b) Briefly discuss 3 types of customs and excise bond.
c) What is the purpose of a temporary removal clause?
d) What cover does Temporary removal clause provide?
1. Faulty design, fault at workshop 13. When a loss paid, what effects has such payment on the
2. Faulty operation, malicious act sum insured under 1) a motor car comprehensive policy
3. Vibration, maladjustment & misalignment, 2) An engineering policy
4. Failure of connected machinery or protective devices 3) A theft policy
5. Excessive electrical pressure whether due to atmospheric electricity 4) A fire Declaration policy
6. Failure of insulation, short circuits, open circuits of damage by internal force setup 5) A fidelity guarantee policy
7. Failing impact, collision
8. Obstruction or the entry of foreign bodies 2. What is the importance of inclusion of average condition under Fire
9. Defective lubrication, loosening of parts, abnormal stress, self heating, centrifugal insurance policy?
force, explosion due to internal pressure, explosion due to external pressure or
internal vacuum.
a) What is business interreuption policy?
Business Interruption policy: Machinery breakdown insurance
1. Loss or damage due to fire, lightning, chemical explosion, burglary, theft, collapse
of buildings.
2. Loss or damage due to inundation, flood, earthquake, subsidence, landslide,
interruption risk avalanche, hurricane, cyclone, volcano or other act of god.
Interruption risk 3. Loss or damage as direct consequences of the continual influence of operations.
standard fire 4. Loss or damage caused by the willful act or gross negligence on the part of the
Consequential loss policy Loss of profit policy insured or his responsible representatives.
5. Loss or damage due to faults or defects which were in existence when the
Average
9. a) Discuss the salient features of the boiler & pressure insurance was arranged and known to the insured.
vessel insurance. 6. Loss or damage due to faults or defects for which the manufacturer or the
supplier is responsible either by law or under contract.
Boiler & Pressure Vessel Insurance:
7. Loss or damage due to exchangeable parts & tools, such as dices, moulds,
engraved cylinders, ropes, chains, belts, blades, cutters, knives, objects made of Average
glass, rubber tyros.
8. Nuclear reaction, nuclear radiation or radio-active contamination.
9. Any consequences of war, invasion, act of foreign enemy, hostilities, civil war, Average
rebellion, revolution, insurrection, riot, strike, lock-out, civil commotion, military or
1. Steam generating boilers usurped power, acts of a group of malicious persons acting on behalf of or in 4. Explain the doctrine of Subrogation.
2. Low pressure hot water heating boiler connection with any political organization, conspiracy, confiscation, Subrogation:
3. Low pressure steam heating boilers commandeering, requisition or destruction of or damage to property by order of any
4. Domestic supply boilers government de-jury or de-facto or by any public authority.
5. High pressure hot water heating boilers
letter of subrogation

1. Over heating of boilers

comprehensive
2. Over heating of tubes
3. Cracking-ironing machine
4. Cracking or weld failure subrogation
5. Joint breakage letter of subrogation
6. Fire gas explosion
7. General damage
Machinery breakdown excess
subrogation bailee or
carrier
Indemnity
9. What do you understand by Contribution?
Indemnity
Contribution:
subrogation Principle
of subrogation is indeed a corollary to the principle of indemnity Essentials of Insurable Interest:
5. How Subrogation arises?

indemnity
10. What are the essential requirements for exercising the principle of
Contribution? 12. Provide five examples of how an Insurable Interest may arise
Or in property insurance?
The doctrine of contribution is applied only when certain pre-
requisites are full-fill. What are those pre-requisites?
Contribution

carrier
Contribution
Contribution K: Owners-
The riot Act-1886
Contribution L: Part or Joint Owners-
6. When do the Subrogation rights accrue to the insurer?
Common Uncommon Peril M: Mortgagor or Mortgagee-
subrogation
common Peril Contribution
subrogation

subrogation Contribution
N: Bailees-

Contribution
O: Carriers & Innkeepers-
7. In what circumstances are ex-gratia payments made & how is
11. Define Insurable Interest. What are the three essentials of
insurer’s subrogation rights affected? Insurable Interest?
Or Insurable Interest:
Do the insurers have a right of subrogation under ex-gratia P: Administrators, Executors & Trustees –
payments? Explain with reasons.

Q: Husband & Wife-

ex-gratia payment subrogation

R: Agents-
ex-gratia
payment subrogation
ex-gratia payment 13. When must Insurable Interest exist in various insurances?
Fire Insurance:
P.P.A
subrogation
 Act Liability:

R.S.Sharma
Life Insurance:
18. How breaches of the duty of Utmost good faith take place?

Marine Insurance: 14. What is Uberrima Fides? In what contract that is applicable? Utmost good faith
R.S.Sharma Or
What is the importance of principles of “utmost good faith” in
insurance?
Uberrima Fides- Utmost good faith
:

:
simple commercial contract
commercial contract caveat :
emptor or the buyer beware

law of contract & law of tort

caveat emptor or the buyer beware
19. What is standard fire policy? What cover is provided by the
standard fire policy?
*Write down some extra perils that can be included under the
Fire Policy on payment of additional premium.
* Discuss the perils and accepted perils of Fire Insurance Policy.

Standard Fire Policy:

law of
caveat emptor

Institute of London Underwriters

Motor Insurance:
Uberrima Fides or Utmost good
faith
17. What do you mean by Material facts?
Comprehensive Motor Insurance Policy Material fact
Standard Fire policy Form
Act Liability Motor Insurance Policy.
Comprehensive Insurance:
fact
Standard Fire policy
immaterial fact
Material fact

Utmost good faith

Standard Fire fire brigade fire fighting
physical hazard
provisional basis
Provisional sum insured physical hazard

monthly declaration physical hazard

declaration
accepted perils
provisional 25. What are the causes of fire waste?
Fire Waste
declaration Provisional sum insured

22. What is Lloyd’s Fire Policy? Fire Waste

20. What are the three conditions necessary to constitute a fire
within the meaning of fire insurance?
Lloyd’s Fire Fire Waste
Policy
Standard Fire policy Lloyd’s Fire policy

21. Define in detail about Fire Declaration policy. What are the Standard Fire Lloyd’s Fire policy
policy Fire Waste
objects of a declaration policy? Fire Waste
Fire Declaration Policy:
2. Fire consequent upon 27. Briefly discuss the various types of marine insurance.
explosion whenever the
explosion occurs 1. Time policy 2. Voyage policy 3. Mixed policy 4. Floating policy
3. Explosion conwequent 5. Open cover note
upon fire on the premises 6. Open policy/certificate
insured 7. Port risk policy
8. Construction policy
23. What is First Loss Policy and why such a policy issued? 1. Time policy:
indemnity

avarage Burglary insurance

declaration
indemnity
2. Voyage policy:
provisional sum insured
provisional premium
declaration

monthly declaration 3. Mixed policy:

24. Quote four features of the fire hazard.
physical hazard
declaration
combustible nature physical hazard
physical hazard
provisional premium
physical hazard
Objects or Features of Declaration policy:
physical hazard Mixed policy
4. Floating policy: Consequential loss policy Loss of profit policy

Consequential loss policy

Loss of profit policy
Floating policy standing charges
variable
certificate of charge
insurance Consequential loss policy Loss of profit policy

5. Open cover note: 34. Describe the extent of coverage and its exclusions under
standing charges interruption policy.
variable charge Interruption policy or Loss of profit
Consequential loss policy Loss of
1. Standing charges:
profit policy

Consequential loss policy Loss of profit policy

Standing charges
2. Variable charges:
Turn-Over

Turn-Over
turn over
32. Explain the following features of consequential loss Variable charges
insurance- 1. Gross profit, 2. Standing charges, 3. Turn over, 4. 3. Net profit:
Difference basis
6. Open policy/certificate: 1. Gross profit:

Interruption policy or Loss of profit

7. Port risk policy:
2. Standing charges:  Under-insurance against material damage
 Difference value of stock or plant at the time of damage and at the time
of subsequent replacement
 Depreciation of undamaged stock after damage
Standing charges  Cost of preparing fire claims & loss of profit claim
8. Construction policy: 33. What is interruption risk? How this interruption risk can be  Litigation cost for fire claims & loss of profit claims
insured?  Third party claims
 Failure to recover debts due to destruction of records
Interruption risk can be insured:
 Loss of goodwill
31. Why consequential loss policy is required by the Interruption risk
35. Define pecuniary loss insurance business with some example.
manufacturers? Consequential loss policy Loss of profit policy
Pecuniary loss insurance
* Discuss the advantages of such policy for both insurers and
insured. Pecuniary loss insurance Pecuniary loss
Consequential loss policy Loss of profit policy
insurance
Consequential loss policy Loss of profit policy Consequential loss policy
Loss of profit policy
 Comprehensive Motor
Insurance Third Party Motor Insurance, Act liability insurance
Comprehensive Motor Insurance

Pecuniary loss insurance 4. Injury to a padestrian & a driver:

1. Loss of rent Comprehensive Motor
2. Consequential or profit of loss Insurance Third Party Motor Insurance, Act liability insurance
3. Book debts
4. Fidelity Guarantee Third Party Private car insurance
5. Government bond
6. Contract guarantee bond

1. Freight
2. Disbursement
3. Premium of insurance 3. Redelivery to the insured:
4. Balancing charges 41. Whether the following losses or damages and expenses are Comprehensive Motor
37. What is the importance of Credit insurance? recoverable under Standard Fire Policy. If so, give reason. Insurance Third Party Motor Insurance, Act liability insurance
1. Windows broken by the force of the explosion: Comprehensive Motor Insurance
Standard Fire
Credit insurance a. Fire in the nature of accident, whether resulting from explosion or otherwise.
b. Lightning (with or without fire)
Tradition credit insurance c. Explosion (boiler or gas works used for domestic purpose)
Explosion (boiler or gas works used for domestic purpose)
Credit insurance 43. A motor insurance policy holder submitted following claims
Credit insurance under his comprehensive private car policy.
2. Loss or damage caused by explosion followed by fire:
1. Repairing cost of Tk. 50,000.00:
Credit insurance Standard Fire
Comprehensive Motor
loss of profit a. Fire in the nature of accident, whether resulting from explosion or otherwise.
Insurance Third Party Motor Insurance, Act liability insurance
b. Lightning (with or without fire)
c. Explosion (boiler or gas works used for domestic purpose) Comprehensive Motor Insurance
Explosion Standard Fire
40. Determine the liability of insurers in respect of the following
losses under a Third Party Private ar insurance cover. 3. Losses or damage by fire causing an explosion: 2. Death claim:
1. Damage to insured car for Tk. 1, 00,000.00: Standard Fire Comprehensive Motor
Comprehensive Motor a. Fire in the nature of accident, whether resulting from explosion or otherwise. Insurance Third Party Motor Insurance, Act liability insurance
Insurance Third Party Motor Insurance, Act liability insurance b. Lightning (with or without fire) Comprehensive Motor Insurance
Third Party Private car insurance c. Explosion (boiler or gas works used for domestic purpose)
Explosion Standard Fire

2. Damage to a shop owned by a third person for Tk.

30,000.00: 42. What indemnity is granted under a comprehensive private
Comprehensive Motor motor car policy folowing an accident to the insured car
Insurance Third Party Motor Insurance, Act liability insurance regarding Removal, Emergency medical treatment to the driver,
Third Party Private car insurance
Redelivery to the insured? 44. When a loss paid, what effects has such payment on the sum
1. Removal: insured under?
Comprehensive Motor 1. An engineering policy & A motor car comprehensive policy:
Insurance Third Party Motor Insurance, Act liability insurance
Comprehensive Motor Insurance Engineering
3. Injury to a passenger medical expense for Tk. 15,000.00:
Comprehensive Motor
Insurance Third Party Motor Insurance, Act liability insurance
Third Party Private car insurance
2. Emergency medical treatment to the driver: 2. A theft policy & A fire declaration policy:
 Sprinkler leakage insurance

Aviation Insurance:
Aviation Insurance Third party and crash risks

Aeronautics
Specialised insurance
Reinstatement Pool Group Pool
45. Explain the position regarding salvage, where the insured has British Aviation insurance co. ltd.
received a full indemnity. Reinstatement Aviation & General insurance co. ltd.
* Explain the position regarding salvage, where the insured has Lloyds Aviation Aviation
been partially indemnified. Syndicate
48. Define Re-Insurance and its various types. Aviation Department

1. Loss or damage to aircraft itself both in the air and on the

ground.
2. Legal liability to third parties & passengers.
3. Loss or damage to property of third parties.
4. Personal accident insurance of pilots, crews and ground staffs.
5. Insurance of pilots against loss of professional licenses.
6. Loss or damage to cargo carried.
7. Loss of use of the aircraft following an accident, e.g. fire, loss
of profits, engineering
46. Define reinstatement. In which circumstances reinstatement machinery breakdown.
1. Facultative reinsurance, 2. Treaty reinsurance
take place? 1. Facultative reinsurance: 3. Proximate Cause:
proximate cause principle
reinstatement
reinstatement
reinstatement

reinstatement Insured
Perils Excepted Perils
Uninsured
reinstatement
2. Treaty reinsurance: Perils | Insured Excepted
Treaty Arrangement Uninsured Perils
(Reinsurer),
Insured Excepted Uninsured Perils
47. What are the difficulties in restatement? What are the
Treaty arrangement Insured Perils
duties of insured in reinstatement?
Proportional Treaty Non Proportional Treaty Excepted Perils Excepted Perils
Reinstatement
49. Explain the proportional reinsurance system. Insured Perils Uninsured Perils
Reinstatement
Short Notes proximate cause
Sprinkler leakage insurance:
4. Reinstatement Clause:
 re-instate
port of
destination
Reinstatement re-instate

re-instate money
standard fire policy
Reinstatement

b) Distinguish between Salvage Charges & Sue & Labour

charge.

Salvage Charges Sue & Labour Charge

port of
destination

c) Differentiate between Actual total loss & Constructive total

loss.

Actual Total Loss Constructive Total Loss

constructive actual total loss

total loss