New IFSCA Phase 1 Results Out - Enroll Here for Phase 2

    Register

    Question

    As per the Insurance Act what is the nature of fire insurance business?

    A Fire insurance business solely involves contracts of insurance against losses caused by fire, with no other risks included Correct Answer Incorrect Answer
    B Fire insurance business refers to contracts of insurance against fire, but it excludes any incidental risks or other occurrences typically covered by fire insurance policies Correct Answer Incorrect Answer
    C Fire insurance business involves the effecting of contracts of insurance primarily against losses due to fire, or other occurrences customarily included in fire insurance policies, provided these are not incidental to another class of insurance business Correct Answer Incorrect Answer
    D Fire insurance business includes any form of insurance that covers risks, whether or not they are related to fire, as long as they are included in a fire insurance policy Correct Answer Incorrect Answer
    E Fire insurance business is limited to contracts that are incidentally related to fire risks but are primarily concerned with other classes of insurance. Correct Answer Incorrect Answer

    Solution

    Section 2 Definitions:  (6A) fire insurance business means the business of effecting, otherwise than incidentally to some other class of insurance business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies.

    Practice Next

    Relevant for Exams: