III IC-78 case studies
III IC-78 · Put your knowledge to work in context.
IC-78 is a subject code in the professional examination series administered by the Insurance Institute of India (III). This page is an independent study resource: it is not affiliated with, endorsed by, or operated by III, and candidates must always confirm requirements on III's own site. The III IC-78 case studies are 5 cases and about 3,979 words.
1Reinstatement Value Clause, Average and the Whole-Property Rule
A pharmaceutical formulation plant in Baddi insured its building, plant and machinery, and stock under a Standard Fire and Special Perils Policy with the Reinstatement Value Clause attached, for a total sum insured of Rs 12.00 crore, of which Rs 8.00 crore was allotted to building and plant and machinery and Rs 4.00 crore to stock. When the proposal was placed, the insured's valuer put the reinstatement cost of building and machinery at Rs 10.50 crore.
683 words, about 3 min2Declaration Policy: Under-Declaration, Average and Premium Adjustment
A cotton ginning and trading firm covers its raw cotton stock under a Declaration Fire Policy with a provisional sum insured of Rs 5.00 crore at Rs 1.50 per mille; the provisional premium of Rs 75,000 has been paid. Declarations of the highest value at risk each month must be filed by the 7th of the following month.
668 words, about 3 min3Loss of Profit: Gross Profit Rate, Savings and the Sum Insured Test
A garment exporter's stitching and processing unit at Tiruppur insures loss of profits under a Consequential Loss (Fire) Policy following the Standard Fire Policy on building, plant and stock. The sum insured on gross profit is Rs 3.00 crore and the indemnity period is 12 months.
723 words, about 4 min4Proximate Cause: Natural Heating in Stored Husk and the Fire Exclusion
A coir products manufacturer in Alappuzha stores coconut husk in a masonry godown insured under a Standard Fire and Special Perils Policy with Strike, Riot, Malicious Damage and Terrorism cover attached. The exclusion for loss caused by the insured property's own fermentation, natural heating or spontaneous combustion was not bought back by endorsement.
947 words, about 5 min5Underwriting Judgement on a Solvent-Blending Risk beside a Timber Yard
A paint and thinner blending unit near Coimbatore seeks Rs 9.00 crore cover on building, plant and stock at the class rate of Rs 1.20 per mille. The risk has 4,000 sq m of built-up area; 18,000 litres of solvent-based raw material in 200-litre drums, of which 4,000 litres are kept in an open lean-to yard; the drum store has ordinary, non-flameproof light fittings and no fixed extinguishing system; 20 kg LPG cylinders for the canteen are stored beside the drum store; and the boundary wall is 12 m from an open timber yard with a saw mill.
958 words, about 5 min