PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free III IC-57 Practice Questions

Pass your III IC-57 Fire and Consequential Loss Insurance exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Insurance Institute of India (III) Licentiate Papers

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

III IC-01 Principles of Insurance

Practice Questions

III IC-02 Practice of Life Insurance

Practice Questions

III IC-102 Insurance Business Ecosystem

Practice Questions

III IC-103 Distribution Channels Management

Practice Questions

III IC-104 Products of Life Insurance

Practice Questions

III IC-11 Practice of General Insurance

Practice Questions
2026 Statistics

Key Facts: III IC-57 Exam

100

Online MCQs per paper

III Examination Handbook

2 hours

Exam duration

III Examination Handbook

60%

Passing mark (75% Distinction)

III Examination Handbook

30

Credit points for IC-57

III credit-point system

INR 600

India paper fee (30 credits) w.e.f. 1.4.2026

III Table of Fees

INR 800

Fresh registration (India) w.e.f. 1.4.2026

III Table of Fees

III IC-57 is a 100-question, 2-hour online MCQ paper on Fire and Consequential Loss Insurance. Passing requires 60% (Distinction from 75%). India paper enrollment for this 30-credit subject is INR 600 w.e.f. 1.4.2026, plus INR 800 registration for fresh candidates (taxes extra).

Sample III IC-57 Practice Questions

Try these sample questions to test your III IC-57 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following elements is absolutely essential for a fire to be covered under a Standard Fire and Special Perils (SFSP) policy?
A.There must be actual ignition.
B.The fire must be intentional.
C.The property must be completely destroyed.
D.The fire must involve hazardous chemicals.
Explanation: For a loss to be covered under the peril of 'fire' in an SFSP policy, there must be actual ignition (a fire in the literal sense). Spontaneous combustion, heating, or fermentation without ignition is not covered unless specified.
2Under the SFSP policy, which of the following perils is NOT covered as a standard inclusion without additional premium?
A.Lightning
B.Explosion/Implosion
C.Earthquake
D.Aircraft Damage
Explanation: Earthquake (Fire and Shock) is an add-on cover and is not included as a standard peril under the base SFSP policy without payment of an additional premium.
3The 'Average Clause' in a fire insurance policy is designed to address which of the following situations?
A.Over-insurance of the property
B.Under-insurance of the property
C.Moral hazard of the insured
D.Frequent small claims
Explanation: The Average Clause comes into effect when a property is under-insured (the sum insured is less than the actual value of the property at the time of loss). It proportionately reduces the claim payout.
4In Consequential Loss (Fire) Insurance, what does the term 'Indemnity Period' refer to?
A.The total duration of the policy.
B.The maximum period during which the business results are affected by the damage, up to a limit chosen by the insured.
C.The time taken by the insurer to settle the claim.
D.The waiting period before a claim can be filed.
Explanation: The Indemnity Period is the period beginning with the occurrence of the damage and ending when the business results cease to be affected by the damage, subject to the maximum period selected by the insured (e.g., 12, 18, or 24 months).
5Which valuation method is typically used to insure old machinery under a fire insurance policy where replacement with a new machine is intended?
A.Market Value Basis
B.Reinstatement Value Basis
C.Agreed Value Basis
D.Book Value Basis
Explanation: Reinstatement Value Basis is used when the insured wants to replace the damaged property with new property of the same kind without deducting depreciation. It is commonly used for buildings and machinery.
6What is the purpose of the 'Departmental Clause' in a Consequential Loss policy?
A.To exclude coverage for high-risk departments.
B.To allow separate calculation of gross profit for independent departments of a business.
C.To mandate regular safety inspections for each department.
D.To determine liability based on which department caused the fire.
Explanation: The Departmental Clause applies when a business has independent departments with different rates of gross profit. It allows the loss to be calculated separately for each department, ensuring a fairer settlement.
7Which of the following is considered an 'Excepted Property' under the standard SFSP policy unless specifically declared and covered?
A.Plant and machinery
B.Finished goods in a warehouse
C.Bullion or unset precious stones
D.Office furniture
Explanation: Excepted properties under the SFSP policy include bullion, unset precious stones, curios, manuscripts, and plans. These require specific declaration and agreement to be covered.
8In calculating a Consequential Loss claim, what does the term 'Standard Turnover' refer to?
A.The turnover during the indemnity period.
B.The turnover in the 12 months immediately before the date of damage.
C.The expected turnover for the next financial year.
D.The turnover during the corresponding period in the 12 months immediately before the date of damage.
Explanation: Standard Turnover is the turnover during that period in the 12 months immediately before the date of the damage which corresponds with the Indemnity Period, appropriately adjusted for trends.
9A 'Floater Policy' in fire insurance is most suitable for which type of insured?
A.A homeowner with a single residence.
B.A factory owner with all machinery in one location.
C.A trader with stocks stored in multiple warehouses across different locations.
D.A contractor building a new high-rise building.
Explanation: A Floater Policy covers property (usually stocks) at various specific locations under a single sum insured. It is ideal for traders whose stock levels fluctuate between different warehouses.
10Which principle allows the insurer to step into the shoes of the insured to recover the loss from a negligent third party?
A.Contribution
B.Subrogation
C.Proximate Cause
D.Insurable Interest
Explanation: Subrogation is the right of the insurer, after settling a claim, to step into the shoes of the insured and claim recovery from any third party responsible for the loss.

About the III IC-57 Exam

The III IC-57 Fire and Consequential Loss Insurance exam evaluates SFSP material damage, policy conditions, valuation, fire underwriting/hazards, Industrial All Risks (IAR), and consequential loss / business interruption claim calculations.

Assessment

100 objective multiple-choice questions in a single online paper. IC-57 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.

Time Limit

2 hours

Passing Score

60% (Distinction at 75% or above)

Exam Fee

INR 600 per subject (30 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees. (Insurance Institute of India (III))

III IC-57 Exam Content Outline

20 questions

SFSP Policy

Practice questions focusing on sfsp policy concepts.

12 questions

Policy Conditions

Practice questions focusing on policy conditions concepts.

11 questions

Claim Calculation

Practice questions focusing on claim calculation concepts.

9 questions

Business Interruption

Practice questions focusing on business interruption concepts.

8 questions

Valuation Methods

Practice questions focusing on valuation methods concepts.

8 questions

Insurance Principles

Practice questions focusing on insurance principles concepts.

8 questions

Fire Hazards

Practice questions focusing on fire hazards concepts.

6 questions

Policy Types

Practice questions focusing on policy types concepts.

6 questions

Fire Rating

Practice questions focusing on fire rating concepts.

5 questions

Claims Process

Practice questions focusing on claims process concepts.

4 questions

Insurance Documents

Practice questions focusing on insurance documents concepts.

2 questions

Industrial All Risks (IAR)

Practice questions focusing on industrial all risks concepts.

1 questions

Fire Underwriting

Practice questions focusing on fire underwriting concepts.

How to Pass the III IC-57 Exam

What You Need to Know

  • Passing score: 60% (Distinction at 75% or above)
  • Assessment: 100 objective multiple-choice questions in a single online paper. IC-57 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.
  • Time limit: 2 hours
  • Exam fee: INR 600 per subject (30 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees.

Keys to Passing

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

III IC-57 Study Tips from Top Performers

1Study the official III IC-57 coursebook chapter by chapter before mixed mocks.
2Drill SFSP named perils/exclusions, Average Clause, RIV, and IAR eligibility/deductibles.
3Practice FLOP claim building blocks: indemnity period, gross profit, ICOW, and average.
4Sit full 100-question, 2-hour mocks aiming above 60%, with Distinction practice at 75%+.

Frequently Asked Questions

How many questions are on the III IC-57 exam?

The III objective papers, including IC-57, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-57 passing score?

Passing marks for III online MCQ papers are 60% or above. Candidates scoring at least 75% earn Distinction in that subject.

How many credit points does IC-57 carry?

This paper (IC-57) carries 30 credit points under the Insurance Institute of India credit system.