40. Dr. Arun is a well to do surgeon aged 48 years.

His son is in final year medical

college, and daughter would be marriageable in 2 years. He has a saving of Rs 50 lakh,
a house, a clinic, Gold and other valuables. His wife died 2 years back. State his priority
in regard to the following insurances.
(A) Permanent total disability cover
B) Property insurance
(C) Professional indemnity insurance
(D) Life cover. (4)

A) (A), (C), (B), (D)

B) (D), (C), (A), (B)
C) (A), (D), (B), (C)
D) (A), (B), (C), (D)

12)Sajid has a pension policy details of which are given as under; 28 year PPT; Non
Participating policy; Yearly Premium Rs. 10,000; guaranteed returns of Rs. 50/1,000
SA; SA during accumulation phase Rs. 3 Lakh; No riders. What will be the value of the
accumulated corpus just on completion of the premium paying term? (4)
A) Rs. 5.58 Lakh
B) Rs. 4.80 Lakh
C) Rs. 4.20 Lakh
D) Rs. 7.20 Lakh

54 Sunil insured the building of his house for a sum of Rs.500000 against fire insurance.
One day the house is totally gutted in a devastating fire. The insurance surveyors
certified that the building is a total loss with no salvage value and that the insurable
value of the building just prior to the loss was Rs.40000. The insurer will pay to Sunil:
(a) Rs.400000
(b) Rs.250000
(c) Rs.500000
(d) Nil

Q3. Mr. A has gross annual salary of 9 lakh of which he saves 30% which include
statutory EPF deduction, PPF and monthly systematic investment in long term MF
scheme. Another 30% goes toward servicing of household & car loan & taxes. His
financial planner advice him to accumulate 6 months household expense in liquid fund.
HE change job and expect immediate rise of 20% in his gross income .You estimate
that other heads would not change materially except his household expense which
would rise by 5% due child education. How many months will it take to accumulate
liquidreserve?

a.25months

b.11months

c.14months
d. 13 months

Q4. An industrialist started a project on 1st nov 2009 with own capital of rs 1crore. He
arranged a project of rs 1.5crore by a back on 1st july 2009 at a rate of 12%p.a. the
terms of finance were quarterly invested.only payments up to six quarter and the
repayment of premium in three equal installments from the end of seven quarter along
with interest on the loan outstanding.he infuced fresh own funds towards working capital
of rs 20 lakh on 7th december 2009 and rs 30 lakh on 4th november 2010.the project
completed with a profit of rs 4.5crore on 6th september 2012.find the return generated
by the project…

a)22.59%p.a.

b)30.16%p.a.

c)30.57%p.a.

d)32.37%p.a.

Q5. A company in the business of warehousing.in 2012,insured its warehouse premises

also calamity for a value of rs 1.65cr towards liability coverage,separate insurance
towards clients for rs 15cr each were taken to cover the goods kept at any time.the
company has cover of rs 10cr also.the warehouse was completely destroyed in fire.the
registered amount of rs 30cr.what insurance can be setteled in the company’s claim?

a)rs 1.65 cr to the company and rs 30cr towards liablity to clients.

b) nil to the company and rs 26.65cr towards liablity to clients.

c) rs 1.65 cr to the company and rs 17.5cr towards liablity to clients.

d) rs 1.65cr to the company and rs 25cr towards liability to clients.

Q. A client has a car loan of 10 lakhs with an EMI of 21494/m @ 10.5% and 2 years left
for the loan. He also has a personal loan of 3.2 lakhs with an EMI of 11569/m @ 18%
and 2 years left. He receives a sudden inflow of 4 lakhs which he can put in 10% FD for
2 years. Will you advice to repay the loan & invest the EMI systematically every month
in a tax efficient instrument @ 9%?

1. Yes the accumulated amount after 2 years would be more by atleast 20,000 with
lower tax than FD
2. No, FD maturity will be 8,47,000 against total outflow of 7,93,500 in 2 years in
loan
3. No the FD interest would be 1,47,000 where as he may save 98,000 in interest
4. Not nice to leave 10% for 9%