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BIA Diploma in Life Insurance

Practice Questions100 questions

2026 Statistics

Key Facts: BIA Non-Life Insurance Diploma Exam

3 hours

Time Limit Per Paper

Bangladesh Insurance Academy Rules

50%

Passing Score

BIA Examination Guidelines

2,000 BDT

Exam Fee Per Paper

BIA Admission Circular

Biannual

Exam Frequency

BIA Academic Calendar

IDRA

Regulatory Body

Insurance Act 2010

Sadharan Bima

State Reinsurer

Bangladesh Insurance Laws

The Bangladesh Insurance Academy (BIA) Diploma in Non-Life Insurance is a professional credential verifying general insurance expertise in Bangladesh. It consists of multiple modules across certificate and associateship stages, testing fire, marine, motor, accident, and engineering policies, alongside the Bangladesh Insurance Act 2010 and IDRA rules. Earning the diploma requires passing the descriptive papers with at least a 50% score. It is highly valued for underwriting and risk management careers in the Bangladeshi insurance sector.

Sample BIA Non-Life Insurance Diploma Practice Questions

Try these sample questions to test your BIA Non-Life Insurance Diploma exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under general contract principles and the Contract Act 1872 in Bangladesh, when must insurable interest exist in a property (non-life) insurance policy (excluding marine cargo) for a claim to be enforceable?

A.Only at the time the policy is initially written

B.Only at the time the loss occurs

C.Both at the time of policy inception and at the time of loss

D.Insurable interest is not required if the premium has been fully accepted by the insurer

Explanation: For general (non-life) property insurance, insurable interest must exist both when the policy is taken out (inception) and when the loss actually happens. Marine cargo is a notable exception where interest is only required at the time of loss. Without insurable interest at both times, a non-life policy is considered a wagering contract under Section 30 of the Contract Act 1872, rendering it void.

2Which of the following describes the principle of 'Utmost Good Faith' (Uberrimae Fidei) as applied to non-life insurance in Bangladesh?

A.A rule that requires the insurer to pay the claim regardless of the policy exclusions if the insured acted in good faith

B.A mutual duty of both the insurer and the insured to disclose all material facts before the contract is finalized

C.A condition that permits the insured to change the terms of the policy unilaterally after paying the premium

D.A statutory protection that prevents the insurer from questioning the valuation of the property after a claim is lodged

Explanation: Utmost Good Faith is a fundamental principle requiring both parties—the insured and the insurer—to fully and accurately disclose all material facts concerning the risk before the contract is concluded. Material facts are those that would influence a prudent underwriter in deciding whether to accept the risk and at what premium. Failure to disclose material facts makes the contract voidable at the option of the aggrieved party.

3Under the principle of subrogation, at what point does a non-life insurer in Bangladesh acquire the legal right to sue a third party responsible for the loss in the name of the insured?

A.As soon as the insured reports the loss to the insurer

B.Immediately upon the issuance of the insurance policy

C.Only after the insurer has fully indemnified the insured for the loss

D.Once the insurer files a dispute with the IDRA Arbitration Committee

Explanation: Subrogation is a corollary of the principle of indemnity. An insurer is only entitled to stand in the shoes of the insured and pursue third-party recoveries after it has indemnified (paid) the insured's claim. Before indemnification is complete, the right of subrogation does not legally vest in the insurer.

4If an insured has double insurance (policies from two different insurers covering the same risk) and suffers a loss, how is the claim settled under the principle of contribution in Bangladesh?

A.The insured can recover the full loss amount from both insurers, receiving double indemnity

B.Each insurer is liable to pay a rateable proportion of the loss based on their respective sums insured

C.The policy that was purchased first must pay the entire claim, and the second policy is automatically cancelled

D.The insurers are exempt from payment, and the claim must be filed with Sadharan Bima Corporation

Explanation: Under the principle of contribution, when double insurance exists, the insurers share the loss on a rateable basis. This means each insurer contributes in proportion to the liability under its own policy. The insured cannot recover more than the actual financial loss sustained, preserving the core principle of indemnity.

5How is 'Proximate Cause' (Causa Proxima) defined and applied in determining liability for a general insurance claim in Bangladesh?

A.The cause that is nearest in time to the occurrence of the loss

B.The most dominant, active, and efficient cause that sets in motion a chain of events leading to the loss

C.The cause that is designated as primary by the police report or fire brigade assessment

D.The cause that the insured chooses to declare on the official claim form

Explanation: Proximate cause is the active, efficient cause that sets in motion a train of events which brings about a result, without the intervention of any force started and working actively from a new and independent source. It is not necessarily the cause nearest in time, but the most dominant and effective cause of the loss. If the proximate cause is an insured peril, the insurer is liable; if it is an excluded peril, the insurer is not.

6Under Section 10 of the Contract Act 1872 (as applied in Bangladesh), which of the following is NOT an essential element of a legally binding insurance contract?

A.Free consent of the parties competent to contract

B.Lawful consideration and lawful object

C.A written endorsement signed by the Insurance Development and Regulatory Authority (IDRA)

D.Agreement on the essential terms (consensus ad idem)

Explanation: While IDRA is the regulatory authority that oversees insurance operations, it does not sign or endorse individual commercial insurance policies. The contract is executed directly between the insurer and the insured. The essential elements are consensus ad idem, free consent, capacity to contract, lawful consideration, and lawful object as per the Contract Act 1872.

7In non-life insurance, what makes an insurance contract voidable at the option of the insurer under the Contract Act 1872?

A.The insured suffers a minor loss that falls below the policy deductible

B.The contract was entered into under coercion, fraud, misrepresentation, or non-disclosure of a material fact

C.The insurer decides to change its corporate underwriting guidelines mid-policy

D.The market value of the insured asset drops below the sum insured

Explanation: According to the Contract Act 1872, consent is not free when it is obtained through coercion, undue influence, fraud, or misrepresentation. In insurance, failure to disclose material facts (non-disclosure) also violates the utmost good faith principle, rendering the contract voidable at the option of the insurer, who may choose to rescind it.

8What is the primary difference between pure risk and speculative risk in non-life insurance practice?

A.Pure risk offers the possibility of either loss or gain, whereas speculative risk offers only the chance of loss

B.Pure risk offers only the chance of loss or no loss, whereas speculative risk involves the possibility of gain, loss, or no loss

C.Speculative risk is always insurable, while pure risk is strictly prohibited under the Insurance Act 2010

D.Pure risk applies only to marine cargo policies, whereas speculative risk applies to all other classes of insurance

Explanation: Pure risk has only two possible outcomes: loss or no loss (e.g., a factory burning down or not burning down). Speculative risk involves a choice or gamble that introduces the possibility of gain (e.g., investing in the stock market). Non-life insurance contracts are designed to cover pure risks and generally exclude speculative risks.

9Under the doctrine of proximate cause, if an excluded peril and an insured peril occur concurrently to cause a loss, how is liability determined in Bangladesh courts?

A.The insurer must pay the entire claim because the insured peril was involved

B.The loss is split 50/50 between the insurer and the insured automatically

C.If the perils are concurrent and inseparable, and one of them is an excluded peril, the insurer is generally not liable for the loss

D.The claim must be referred to the Ministry of Finance for an executive decision

Explanation: In cases where two causes occur concurrently and are inseparable, and one cause is an excluded peril under the policy wording (and the other is an insured peril), the insurer is generally not liable. For the insurer to be liable, the proximate cause must be an insured peril, and the loss must not be contaminated by an excluded peril.

10What is the legal effect of a breach of a 'Warranty' in a marine or property insurance contract in Bangladesh?

A.The contract remains valid, but the insured must pay a higher premium

B.The insurer is discharged from liability from the exact date of the breach, regardless of whether the breach caused the loss

C.The insurer must prove that the breach was material to the loss before denying a claim

D.The policy is suspended temporarily and resumes automatically when the breach is cured

Explanation: A warranty in an insurance contract is a condition that must be strictly complied with, whether material to the risk or not. Any breach of warranty discharges the insurer from liability from the date of the breach. The insurer does not need to show that the breach caused or contributed to the loss to deny liability.

About the BIA Non-Life Insurance Diploma Exam

The BIA Non-Life Insurance Diploma validates technical expertise in general insurance fields within Bangladesh. Covering essential core papers (BIA-1, BIA-2, BIA-4, BIA-5) and specialized associateship courses (BIA-10, BIA-11, BIA-12, BIA-13), this qualification tests marine hull and cargo policies, standard fire tariffs, accident, motor, and engineering underwriting, along with compliance under the Bangladesh Insurance Act 2010 and IDRA.

Questions

100 scored questions

Time Limit

3 hours (180 minutes)

Passing Score

50%

Exam Fee

2,000 BDT per paper (Bangladesh Insurance Academy (BIA))

BIA Non-Life Insurance Diploma Exam Content Outline

20%

BIA-1 & BIA-2: Foundations of Risk, Contract, and Insurance Law

Insurance contract essentials, insurable interest, utmost good faith, indemnity, subrogation, proximate cause, and Bangladesh Contract Act applications.

15%

BIA-4: Property and Pecuniary Insurance

Property coverages, business interruption, pecuniary losses, theft, fidelity guarantee, and general commercial risk underwriting.

25%

BIA-10 & BIA-12: Marine Hull, Cargo Insurance, and Claims

Marine insurance principles, hull and cargo clauses (Institute Cargo Clauses A, B, C), marine adventures, general average, salvage, and claims settlement under the Marine Insurance Act.

15%

BIA-11: Fire Insurance Law and Claims

Standard Fire Policy conditions, specialized fire tariffs in Bangladesh, add-on perils, standard exclusions, and fire claims assessment and loss adjustment.

15%

BIA-13: Accident, Motor, and Engineering Insurance

Motor Third Party vs Comprehensive policies, Motor Vehicles Ordinance, Contractors All Risks (CAR), Erectors All Risks (EAR), machinery breakdown, and boiler pressure vessels insurance.

10%

Regulatory Framework: IDRA and Bangladesh Insurance Act 2010

Role of the Insurance Development and Regulatory Authority (IDRA), mandatory local reinsurance compliance with SBC (Sadharan Bima Corporation), and licensing guidelines.

How to Pass the BIA Non-Life Insurance Diploma Exam

What You Need to Know

Passing score: 50%
Exam length: 100 questions
Time limit: 3 hours (180 minutes)
Exam fee: 2,000 BDT per paper

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

BIA Non-Life Insurance Diploma Study Tips from Top Performers

1Read the official BIA textbook volumes for each paper thoroughly. Pay close attention to standard conditions and clauses.

2Understand the difference between Comprehensive and Act Only motor insurance in Bangladesh under the Motor Vehicles Ordinance.

3Memorize the standard exclusions of the BIA Fire Tariff, such as damage caused by earthquakes, volcanic eruptions, or hostilities, unless explicitly endorsed.

4Familiarize yourself with the Institute Cargo Clauses (A, B, and C) - know what perils each cover and their respective exclusions.

5Study how the Bangladesh Insurance Act 2010 defines solvency margins and the regulatory powers of IDRA regarding agent licensing and tariff enforcement.

6Practice solving case study questions related to claims. State the relevant principle (e.g., proximate cause or contribution) before detailing the resolution.

Frequently Asked Questions

What is the BIA Diploma in Non-Life Insurance?

It is a professional qualification awarded by the Bangladesh Insurance Academy (BIA) for general (non-life) insurance practitioners. The curriculum covers foundational insurance principles, contract law, property/pecuniary policies, fire, marine, motor, accident, engineering, and regulatory acts governing insurance in Bangladesh.

What is the eligibility criteria for the BIA Diploma?

Candidates must hold a graduate degree in any field from a recognized university. Candidates with an HSC (Higher Secondary Certificate) can register if they have at least 5 years of continuous experience working in an insurance organization or relevant corporate insurance department.

How are the BIA exams conducted and what is the passing score?

The exams are pen-and-paper written tests consisting of descriptive and subjective questions worth 100 marks per paper. The passing grade is 50%. The exams are administered biannually, typically in the months of May and October.

What laws are most relevant for the BIA Non-Life exam in Bangladesh?

Key legal frameworks include the Bangladesh Insurance Act 2010, the Insurance Development and Regulatory Authority (IDRA) Acts/Rules, the Marine Insurance Act 2001 (and relevant British statutes historically adopted), the Motor Vehicles Ordinance 1983 (and subsequent updates), and the Contract Act 1872.

What is the role of Sadharan Bima Corporation (SBC) in non-life insurance?

Sadharan Bima Corporation (SBC) is the only state-owned re-insurer in Bangladesh. By law, non-life insurers must place a designated percentage of their reinsurance business (currently 50% of the total reinsured amount) with SBC, while the remaining 50% can be placed inside or outside the country with IDRA-approved reinsurers.