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100+ Free III IC-77 Practice Questions

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2026 Statistics

Key Facts: III IC-77 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-77

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-77 is a 100-question, 2-hour online MCQ paper on Engineering 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-77 Practice Questions

Try these sample questions to test your III IC-77 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 covers physical loss or damage to civil engineering projects like buildings, roads, and dams during construction?
A.Advance Loss of Profits (ALOP) Insurance
B.Contractors All Risks (CAR) Insurance
C.Erection All Risks (EAR) Insurance
D.Machinery Breakdown (MBD) Insurance
Explanation: Contractors All Risks (CAR) covers physical loss or damage to civil engineering / building works during construction (for example roads, buildings, dams). Market practice typically uses CAR where civil works dominate the contract value.
2In a Contractors All Risks (CAR) policy, when does the period of insurance typically commence?
A.When the first premium installment is paid
B.When the contractor begins work or unloading of first materials at the site
C.Upon handover of the completed project to the principal
D.On the date the contract is signed between principal and contractor
Explanation: In CAR policies, cover usually commences immediately upon commencement of work or after the unloading of the first items at the project site.
3Which section of a standard CAR/EAR policy typically covers Third Party Liability?
A.Section III
B.Section IV
C.Section II
D.Section I
Explanation: In standard CAR and EAR policies (like the Munich Re wording), Section I covers Material Damage, and Section II covers Third Party Liability.
4What is the primary purpose of the Maintenance Period cover in a CAR policy?
A.To extend the construction period due to delays
B.To pay for the routine maintenance and servicing of construction equipment
C.To cover inherent defects in materials that existed before construction
D.To cover damage caused by the contractor while carrying out their obligations under the maintenance clause of the contract
Explanation: The maintenance visits cover is designed to protect against loss or damage caused by the insured contractor in the course of the operations carried out for the purpose of complying with the maintenance obligations.
5Under an Erection All Risks (EAR) policy, testing and commissioning is a critical phase. Which of the following best describes the typical coverage during this period?
A.The policy covers operational testing but generally excludes damage arising from the failure of the item to meet performance guarantees.
B.Coverage is restricted to external perils like fire and lightning only.
C.Coverage applies only if a separate machinery breakdown policy is purchased simultaneously.
D.Testing is entirely excluded to avoid mechanical breakdown claims.
Explanation: EAR covers sudden and unforeseen physical damage during the testing and commissioning phase, but typically excludes the cost of making good defective design/material/workmanship and failure to meet performance guarantees or warranties.
6Which of the following properties is usually excluded from the Material Damage section of a standard CAR policy unless specifically endorsed?
A.Temporary buildings on site
B.Existing structures belonging to the principal
C.Construction plant and equipment
D.Construction materials stored on site
Explanation: Surrounding or existing property belonging to the principal is typically excluded unless covered under a specific 'Surrounding Property' endorsement.
7In the context of CAR/EAR insurance, what does 'ALOP' stand for?
A.All Losses Overhead Premium
B.Advance Loss of Profits
C.Additional Liability On Premises
D.Accidental Loss of Property
Explanation: ALOP stands for Advance Loss of Profits, also known as Delay in Start-Up (DSU) insurance.
8What is the trigger for a claim under an Advance Loss of Profits (ALOP) policy?
A.A delay due to adverse weather conditions preventing work, without any physical damage
B.A delay caused by a physical damage event that is covered under the material damage (CAR/EAR) policy
C.A delay caused by the contractor's financial insolvency
D.Any delay in the project completion, regardless of the cause
Explanation: ALOP/DSU policies only trigger if the delay in commercial operation is a direct result of a physical loss or damage that is indemnifiable under the associated CAR/EAR material damage policy.
9In an ALOP policy, what is the 'Time Excess' or 'Franchise'?
A.The period during which the contractor must prove their loss
B.The initial period of delay (e.g., 14 or 30 days) for which the insurer is not liable to pay
C.The maximum time the project can run before the policy is voided
D.The extra time granted by the insurer to complete the project without paying additional premium
Explanation: The Time Excess (deductible) in ALOP means the insurer does not pay for the loss of gross profit for the specified initial number of days of the delay.
10Machinery Breakdown (MBD) Insurance typically covers sudden and unforeseen damage occurring during:
A.The dismantling of the machinery for scrap
B.The initial installation and erection phase
C.Normal working, resting, or maintenance operations after successful commissioning
D.Transit from the manufacturer to the operational site
Explanation: Machinery Breakdown (MBD) is an operational-phase cover: it applies after successful commissioning while the machine is at work, at rest, or being dismantled/moved/re-erected within the premises for cleaning, inspection, repair, or relocation.

About the III IC-77 Exam

The III IC-77 Engineering Insurance exam evaluates candidate understanding of key principles and practical concepts in Engineering Insurance. The syllabus encompasses various modules detailed below.

Assessment

100 objective multiple-choice questions in a single online paper. IC-77 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-77 Exam Content Outline

8 questions

Definitions

Practice questions focusing on definitions concepts.

7 questions

Underwriting

Practice questions focusing on underwriting concepts.

6 questions

Exclusions

Practice questions focusing on exclusions concepts.

6 questions

Sum Insured

Practice questions focusing on sum insured concepts.

4 questions

Time Excess

Practice questions focusing on time excess concepts.

4 questions

Total Loss

Practice questions focusing on total loss concepts.

3 questions

Maintenance Period

Practice questions focusing on maintenance period concepts.

3 questions

Deductibles

Practice questions focusing on deductibles concepts.

3 questions

Wear And Tear

Practice questions focusing on wear and tear concepts.

3 questions

Clauses

Practice questions focusing on clauses concepts.

3 questions

Claims

Practice questions focusing on claims concepts.

3 questions

Claims Calculation

Practice questions focusing on claims calculation concepts.

3 questions

Claims Settlement

Practice questions focusing on claims settlement concepts.

2 questions

Civil Engineering

Practice questions focusing on civil engineering concepts.

2 questions

Policy Period

Practice questions focusing on policy period concepts.

2 questions

Third Party Liability

Practice questions focusing on third party liability concepts.

2 questions

Testing Commissioning

Practice questions focusing on testing commissioning concepts.

2 questions

Terminology

Practice questions focusing on terminology concepts.

2 questions

Financial Loss

Practice questions focusing on financial loss concepts.

2 questions

Mbd Coverage

Practice questions focusing on mbd coverage concepts.

2 questions

Valuation

Practice questions focusing on valuation concepts.

2 questions

Bpp Coverage

Practice questions focusing on bpp coverage concepts.

2 questions

Cpm Coverage

Practice questions focusing on cpm coverage concepts.

2 questions

Icow

Practice questions focusing on icow concepts.

2 questions

Natural Perils

Practice questions focusing on natural perils concepts.

2 questions

Mlop Underwriting

Practice questions focusing on mlop underwriting concepts.

2 questions

Cessation Of Cover

Practice questions focusing on cessation of cover concepts.

2 questions

Debris Removal

Practice questions focusing on debris removal concepts.

2 questions

Extensions

Practice questions focusing on extensions concepts.

2 questions

Gross Profit

Practice questions focusing on gross profit concepts.

2 questions

Perils

Practice questions focusing on perils concepts.

2 questions

Data Media

Practice questions focusing on data media concepts.

2 questions

Purpose

Practice questions focusing on purpose concepts.

2 questions

Business Interruption

Practice questions focusing on business interruption concepts.

2 questions

Insurable Interest

Practice questions focusing on insurable interest concepts.

2 questions

Risk Management

Practice questions focusing on risk management concepts.

2 questions

Indemnity

Practice questions focusing on indemnity concepts.

1 questions

Car Basics

Practice questions focusing on car basics concepts.

1 questions

Car Coverage

Practice questions focusing on car coverage concepts.

1 questions

Car Ear Standard Forms

Practice questions focusing on car ear standard forms concepts.

1 questions

Post Construction

Practice questions focusing on post construction concepts.

1 questions

Ear Coverage

Practice questions focusing on ear coverage concepts.

1 questions

Property Covered

Practice questions focusing on property covered concepts.

1 questions

Trigger

Practice questions focusing on trigger concepts.

1 questions

Policy Conditions

Practice questions focusing on policy conditions concepts.

1 questions

Operational Phase

Practice questions focusing on operational phase concepts.

1 questions

Mbd Exclusions

Practice questions focusing on mbd exclusions concepts.

1 questions

Claim Settlement

Practice questions focusing on claim settlement concepts.

1 questions

Partial Loss

Practice questions focusing on partial loss concepts.

1 questions

Explosion

Practice questions focusing on explosion concepts.

1 questions

Collapse

Practice questions focusing on collapse concepts.

1 questions

Statutory Requirements

Practice questions focusing on statutory requirements concepts.

1 questions

Equipment

Practice questions focusing on equipment concepts.

1 questions

Cpm Exclusions

Practice questions focusing on cpm exclusions concepts.

1 questions

Internal Breakdown

Practice questions focusing on internal breakdown concepts.

1 questions

Eei Structure

Practice questions focusing on eei structure concepts.

1 questions

Material Damage

Practice questions focusing on material damage concepts.

1 questions

Business Continuity

Practice questions focusing on business continuity concepts.

1 questions

Car Underwriting

Practice questions focusing on car underwriting concepts.

1 questions

Policy Interaction

Practice questions focusing on policy interaction concepts.

1 questions

Mlop Basics

Practice questions focusing on mlop basics concepts.

1 questions

Bottleneck

Practice questions focusing on bottleneck concepts.

1 questions

Takeover

Practice questions focusing on takeover concepts.

1 questions

Escalation

Practice questions focusing on escalation concepts.

1 questions

Surrounding Property

Practice questions focusing on surrounding property concepts.

1 questions

Expediting Expenses

Practice questions focusing on expediting expenses concepts.

1 questions

Cpm Perils

Practice questions focusing on cpm perils concepts.

1 questions

Overturning

Practice questions focusing on overturning concepts.

1 questions

Cross Liability

Practice questions focusing on cross liability concepts.

1 questions

Consumables

Practice questions focusing on consumables concepts.

1 questions

Testing Period

Practice questions focusing on testing period concepts.

1 questions

Phases

Practice questions focusing on phases concepts.

1 questions

Underinsurance

Practice questions focusing on underinsurance concepts.

1 questions

Average Clause

Practice questions focusing on average clause concepts.

1 questions

Standing Charges

Practice questions focusing on standing charges concepts.

1 questions

Financials

Practice questions focusing on financials concepts.

1 questions

Flue Gas Explosion

Practice questions focusing on flue gas explosion concepts.

1 questions

Valves And Tubes

Practice questions focusing on valves and tubes concepts.

1 questions

Depreciation

Practice questions focusing on depreciation concepts.

1 questions

Indemnification

Practice questions focusing on indemnification concepts.

1 questions

Endorsements

Practice questions focusing on endorsements concepts.

1 questions

Weakening Of Support

Practice questions focusing on weakening of support concepts.

1 questions

Pml

Practice questions focusing on pml concepts.

1 questions

Ear Exclusions

Practice questions focusing on ear exclusions concepts.

1 questions

Faulty Design

Practice questions focusing on faulty design concepts.

1 questions

Transit Extension

Practice questions focusing on transit extension concepts.

1 questions

Coverage

Practice questions focusing on coverage concepts.

1 questions

Indemnity Period

Practice questions focusing on indemnity period concepts.

1 questions

Standby Machinery

Practice questions focusing on standby machinery concepts.

1 questions

Car Vs Ear

Practice questions focusing on car vs ear concepts.

1 questions

Project Types

Practice questions focusing on project types concepts.

1 questions

Fire Peril

Practice questions focusing on fire peril concepts.

1 questions

Post Commissioning

Practice questions focusing on post commissioning concepts.

1 questions

Acts Of God

Practice questions focusing on acts of god concepts.

1 questions

Professional Fees

Practice questions focusing on professional fees concepts.

1 questions

Alop Vs Mlop

Practice questions focusing on alop vs mlop concepts.

1 questions

Tunneling

Practice questions focusing on tunneling concepts.

1 questions

Transit

Practice questions focusing on transit concepts.

1 questions

Warranty

Practice questions focusing on warranty concepts.

1 questions

Tpl Coverage

Practice questions focusing on tpl coverage concepts.

1 questions

Dispute Resolution

Practice questions focusing on dispute resolution concepts.

1 questions

Arbitration

Practice questions focusing on arbitration concepts.

1 questions

Testing

Practice questions focusing on testing concepts.

1 questions

Air Freight

Practice questions focusing on air freight concepts.

1 questions

Latent Defect

Practice questions focusing on latent defect concepts.

1 questions

Handover

Practice questions focusing on handover concepts.

1 questions

Project Management

Practice questions focusing on project management concepts.

1 questions

Storage

Practice questions focusing on storage concepts.

1 questions

Salvage

Practice questions focusing on salvage concepts.

1 questions

Policy Selection

Practice questions focusing on policy selection concepts.

1 questions

Generators

Practice questions focusing on generators concepts.

1 questions

Risk Changes

Practice questions focusing on risk changes concepts.

1 questions

Warranties

Practice questions focusing on warranties concepts.

1 questions

Statutory Compliance

Practice questions focusing on statutory compliance concepts.

1 questions

Premium Adjustment

Practice questions focusing on premium adjustment concepts.

1 questions

Contract Value

Practice questions focusing on contract value concepts.

1 questions

Subrogation

Practice questions focusing on subrogation concepts.

1 questions

Joint Insureds

Practice questions focusing on joint insureds concepts.

1 questions

Claims Timing

Practice questions focusing on claims timing concepts.

1 questions

Claims Preparation

Practice questions focusing on claims preparation concepts.

1 questions

Hired Equipment

Practice questions focusing on hired equipment concepts.

1 questions

Risk Factors

Practice questions focusing on risk factors concepts.

1 questions

Site Facilities

Practice questions focusing on site facilities concepts.

1 questions

Treaty Types

Practice questions focusing on treaty types concepts.

1 questions

Proportional

Practice questions focusing on proportional concepts.

1 questions

Betterment

Practice questions focusing on betterment concepts.

1 questions

Material Alteration

Practice questions focusing on material alteration concepts.

1 questions

Utmost Good Faith

Practice questions focusing on utmost good faith concepts.

1 questions

Proposal Form

Practice questions focusing on proposal form concepts.

1 questions

Contract Basis

Practice questions focusing on contract basis concepts.

1 questions

Free Issue Materials

Practice questions focusing on free issue materials concepts.

1 questions

Insurance Basics

Practice questions focusing on insurance basics concepts.

1 questions

Project Monitoring

Practice questions focusing on project monitoring concepts.

How to Pass the III IC-77 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-77 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-77 Study Tips from Top Performers

1Study the official III IC-77 coursebook chapter by chapter before mixed mocks.
2Review the core regulations and guidelines relating to this paper.
3Sit 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-77 exam?

The III objective papers, including IC-77, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-77 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-77 carry?

This paper (IC-77) carries 30 credit points under the Insurance Institute of India credit system.