CBSE Class 12 Sample Paper 2026 Solution for Insurance

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2026

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CBSE | DEPARTMENT OF SKILL EDUCATION
INSURANCE (SUBJECT CODE: 814)
MARKING SCHEME FOR CLASS XII (SESSION 2025-2026)
Max. Time: 3 Hours Max. Marks: 60
General Instructions:
1. Please read the instructions carefully.
2. This Question Paper consists of 24 questions in two sections – Section A & Section
B.
3. Section A has Objective type questions whereas Section B contains Subjective type
questions.
4. Out of the given (6 + 18 =) 24 questions, a candidate has to answer (6 + 11 =) 17
questions in the allotted (maximum) time of 3 hours.
5. All questions of a particular section must be attempted in the correct order.
6. SECTION A - OBJECTIVE TYPE QUESTIONS (30 MARKS):
i. This section has 06 questions.
ii. There is no negative marking.
iii. Do as per the instructions given.
iv. Marks allotted are mentioned against each question/part.
7. SECTION B – SUBJECTIVE TYPE QUESTIONS (30 MARKS):
i. This section contains 18 questions.
ii. A candidate has to do 11 questions.
iii. Do as per the instructions given.
iv. Marks allotted are mentioned against each question/part.
SECTION A: OBJECTIVE TYPE QUESTIONS
Source Material
Unit/ Page no. of
(NCERT/PSSCIVE Mark
Q. No. QUESTION Chap. source
/ CBSE Study s
No. material
Material)
Q. 1 Answer any 4 out of the given 6 questions on Employability Skills (1 x 4 =
4 marks)
i. Personality is a cluster of CBSE Study Unit 2 Page no. 1
thoughts, feelings and behaviors Material 33
that make a person unique and
different from others.
ii. (c) Not -Responding CBSE Study Unit 1 Page no. 8 1
Material
iii. Font Color CBSE Study Unit 3 Page no. 1
Material 72
iv. Ctrl+u CBSE Study Unit 3 Page no. 1
Material 55
v. Plants, such as Areca palm and CBSE Study Unit 5 Page no. 1
rubber absorb harmful pollutants Material 112
from the air.
vi. Perseverance is the ability to CBSE Study Unit 4 Page no. 1
continue to do something, even Material 103
when it is difficult.
Q. 2 Answer any 5 out of the given 7 questions (1 x 5 = 5 marks)
i. 1972 CBSE Study Unit 1 Page no. 1
Material 20
814-Insurance-MS-XII 1

ii. A fire insurance cannot be CBSE Study Unit 2 Page no. 1
assigned without the permission Material 43
of the insurer.
iii. F.O.R. concerns mainly the CBSE Study Unit 3 Page no. 1
internal trade transactions. Material 68
iv. The insurance company through CBSE Study Unit 5 Page no. 1
its TPA will arrange for direct Material 108
payment to the Hospital. This is
known as Cashless facility.
v. 1. Mandatory Motor Vehicle CBSE Study Unit 4 Page no. 1
Insurance Material 83
2. Comprehensive Motor Vehicle
Insurance
vi. Indian Rupees CBSE Study Unit 5 Page no. 1
Material 116
vii. Market value means CBSE Study Unit 6 Page no. 1
replacement value of insured Material 132
property or item as New at the
time of damage or loss less due
allowance for betterment, wear
and tear and/or depreciation.
Q. 3 Answer any 6 out of the given 7 questions (1 x 6 = 6 marks)
i. Spouse CBSE Study Unit 1 Page no. 1
Material 27
ii. Maritime Perils refer to perils CBSE Study Unit 3 Page no. 1
consequent to navigation of sea. Material 63
iii. Proportionately CBSE Study Unit 2 Page no. 1
Material 52
iv. Floater benefit means the sum CBSE Study Unit 5 Page no. 1
insured as specified for the Material 114
proposer under the policy, is
available for any or all the
members for one or more claims
during the tenure of the policy.
v. Acts involving the family CBSE Study Unit 6 Page no. 1
members or employees of the Material 125
insured.
Due to war perils, riot & strike,
natural calamities and nuclear
perils.
vi. Mixed CBSE Study Unit 3 Page no. 1
Material 69
vii. FORM A: to cover Act Liability CBSE Study Unit 4 Page no. 1
FORM B: to cover Own Damage Material 88
Losses and Act Liability.
Q. 4 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. The insurance company may CBSE Study Unit 2 Page no. 1
accept risk unconditionally or Material 46
subject to certain conditions and
may give provisional protection
to the insured by a document
known as cover note.
ii. Sales CBSE Study Unit 3 Page no. 1
Material 72

814-Insurance-MS-XII 2

iii. 1. Reliance General Insurance CBSE Study Unit 1 Page no. 1
Company Limited Material 22
2. Star Health Allied Insurance
Company Limited
(answer may vary as there are
total 22 companies)
iv. Surveyor CBSE Study Unit 4 Page no. 1
Material 97
v. Intrinsic value means CBSE Study Unit 6 Page no. 1
reinstatement value of insured Material 132
property or item less due
allowance for betterment, wear
and tear and/or depreciation.
vi. If renewed without a break, the CBSE Study Unit 5 Page no. 1
cover can be continued up to Material 117
age 90.
Q. 5 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. Ship CBSE Study Unit 3 Page no. 1
Material 68
ii. Indemnity CBSE Study Unit 1 Page no. 1
Material 30
iii. The period between the CBSE Study Unit 6 Page no. 1
commencement date and the Material 131
expiry date shown in the
schedule.
iv. Cause CBSE Study Unit 2 Page no. 1
Material 47
v. When the policy is for definite CBSE Study Unit 3 Page no. 1
period, it is known as ‘time Material 64
policy’.
vi. Sum Insured means the CBSE Study Unit 6 Page no. 1
Monetary Amounts shown Material 131
against item/s insured.
Q. 6 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. Comprehensive Policy CBSE Study Unit 2 Page no. 1
Material 50
ii. Hospitalization CBSE Study Unit 5 Page no. 1
Material 117
iii. Unlimited CBSE Study Unit 4 Page no. 1
Material 85
iv. “Hold-up” means forcible CBSE Study Unit 6 Page no. 1
removal by actual or threatened Material 132
violence against the Insured or
Employees(s) of the Insured.
v. Uberrima Fides CBSE Study Unit 1 Page no. 1
Material 24
vi. Cargo insurance is taken in CBSE Study Unit 3 Page no. 1
respect of the cargo carried by Material 64
the ship from one place or
another.

814-Insurance-MS-XII 3

SECTION B: SUBJECTIVE TYPE QUESTIONS
Source Material
Unit/ Page no. of
Q. (NCERT/PSSCIVE
QUESTION Chap. source Marks
No. / CBSE Study
No. material
Material)
Answer any 3 out of the given 5 questions on Employability Skills in 20 – 30 words each
(2 x 3 = 6 marks)
Q. 7 Keep the work aside and help the CBSE Study Unit 1 Page no. 8 2
customer first of all in listening to what Material
his complain is and guide him for best
solution. Customer satisfaction is a
prime concern.
Q. 8 1. Talk to someone, it helps to share CBSE Study Unit 2 Page no. 37 2
feelings. Material
2. Look after your physical health.
3. Build confidence in your ability to
handle difficulties.
4. Engage in hobbies
5. Stay positive (any four)
Q. 9 1. They are interesting as they have CBSE Study Unit 3 Page no. 63 2
features like images, videos, Material
animation and music.
2. Making changes in digital
presentations is easy.
3. A digital presentation can be shown
to a much larger audience by
projecting on a screen.
4. The presentation can be printed and
distributed to the audience.
Q. 10 1. Identifying entrepreneurial CBSE Study Unit 4 Page no. 85 2
opportunity. Material
2. Turning ideas into action.
3.Feasibility study
4.Resourcing
5. Setting up an enterprise
6. Managing the enterprise
7. Growth and development (any four)
Q. 11 Green jobs help: CBSE Study Unit 5 Page no. 2
• increase the efficiency of energy Material 114
and raw material.
• reduce greenhouse gas emissions.
• control waste and pollution.
(any two)
Answer any 3 out of the given 5 questions in 20 – 30 words each (2 x 3 = 6 marks)
Q. 12 1. National Insurance Company Ltd. CBSE Study Unit 1 Page no.21 2
2. New India Assurance Company Material
Limited
3. Oriental Insurance Company Ltd.

814-Insurance-MS-XII 4

4.United India Insurance Company
Ltd
Q. 13 Hull, Cargo, Freight and Liability CBSE Study Unit 3 Page no.64 2
Material
Q. 14  Loss or damage caused by wear CBSE Study Unit 6 Page 2
and tear or gradual deterioration. Material no.127
 Loss or damage occasioned by
loot, sack, spillage or pilferage.
 Consequential loss or damage of
any kind
 Unexplained losses, shortages due
to error or omissions, losses
discovered when making an
inventory or a periodic stock taking
or loss resulting from the Insured's
voluntarily parting with title or
possession of any property or
induced to do so by deception.
(any two)

Q. 15 Health Insurance policies may offer CBSE Study Unit 5 Page 2
“Cumulative Bonus” wherein for every Material no.109
claim free year (i.e. a year in which no
claim is made); the Sum Insured is
increased by a certain percentage at
the time of renewal subject to a
maximum percentage.

Q. 16 The Motor Vehicles Act provides that CBSE Study Unit 4 Page no.86 2
the policy of insurance shall be of no Material
effect unless and until a certificate of
insurance in the form prescribed
under the Rules of the Act is issue.

Answer any 2 out of the given 3 questions in 30– 50 words each (3 x 2 = 6 marks)

Q. 17 The personal accident policy is CBSE Study Unit 5 Page 3
basically designed to offer Material no.111
compensation to the insured person
who suffers bodily injury as a result of
an accident which is external, violent
and visible. Hence death or injury due
to any illness or disease is not
covered by the personal accident
policy. This policy offers
compensation in case of death due to
result of an accident only. So he
cannot receive insurance claim
amount.

814-Insurance-MS-XII 5

Q. 18 A fire policy containing an average CBSE Study Unit 2 Page no.50 3
clause is called Average Policy. An Material
average policy requires the insurer to
pay that portion of actual loss as the
Insurance bears to the actual value of
the property at the time of loss.
Example: If the actual value of the
property is Rs. 10,00,000 and the
same is insured for Rs. 8,00,000 and
loss on account of fire is Rs. 2,00,000.
In such case the Insured will get
8,00,000/10,00,000*2,00,000=
1,60,000
The balance of Rs.40,000 shall be
borne by the Insured himself.
However, if the insured amount is
equal to the value of the property or
more than that he will get
compensation of the entire loss i.e.
2,00,000.
Q. 19 Marine Insurance Policy plays a very CBSE Study Unit 3 Page no. 61 3
important role in the field of Overseas Material
Commerce and Foreign Trade. In the
foreign trade transit of goods by the
sea has various risks associated with
it. Such risks include losing of the ship
along with goods, sea piracy, robbery,
criminal violence at the sea, loss and
damage of goods while goods are in
the ship. These risks gave rise to one
of the most important and oldest form
of insurance called Marine Insurance.
Hence, we would suggest him to take
a Marine Insurance Policy.
Answer any 3 out of the given 5 questions in 50– 80 words each (4 x 3 = 12 marks)

Q. 20 It is the Insurance Co. who will have CBSE Study Unit 1 Page no.48 4
the right on the amount of ₹20,000 Material
only obtained by selling off the half-
burnt goods, because the firm has
already received full claim of
compensation from the insurance Co.
Common Documents for all claims under
a Standard Fire Policy:
 Certified True copy of the policy
along with schedule and
endorsements/clauses.
 Claim Form.

814-Insurance-MS-XII 6

 Newspaper reports on the incident,
if any
 Photographs.
 Past claims experience
Q. 21 A sale contract is an essential feature CBSE Study Unit 3 Page no.67 4
in the trade involves a seller and a Material
buyer and other parties such as the
carrier, the bank, and the clearing
agent. The nature of sales contract
will determine the extent of liability of
each party and the specific party that
should take the Insurance.
1.F.O.B (Free on Board) means Free
on Board. Under FOB contracts the
seller is responsible to deliver the
goods on the ship or the vessel
designated by the buyer.
2.C.I.F(Cost, Insurance and Freight)
The seller is responsible for arranging
the Carriage and delivering the goods
at the port of destination.
3.C&F means Cost and Freight.
Under these contracts the seller pays
for freight only.
4.F.O.R (Free On Rail) but it concerns
mainly the internal trade transactions.

Q. 22 Health insurance policies generally CBSE Study Unit 5 Page 4
contain certain with respect to Material no.108
coverage and claims, these are listed
below briefly:
a. Minimum period of stay in Hospital
In order to become eligible to make a
claim under the policy, minimum stay
in the Hospital is necessary for a
certain number of hours. Usually the
stipulated duration is 24 hours. This
time limit may not apply for treatment
of accidental injuries and for certain
specified treatments.
b. Pre and post hospitalization
expenses incurred during a certain
number of days prior to hospitalization
and post hospitalization expenses for
a specified period from the date of
discharge may be considered as part
of the claim provided the expenses
relate to the disease / sickness.

814-Insurance-MS-XII 7

c. Cashless Facility Insurance
companies have tie-up arrangements
with a network of hospitals in the
country. If the policyholder takes
treatment in any of the network
hospitals, there is no need for the
insured person to pay hospital bills.
The Insurance Company, through its
Third Party Administrator (TPA) will
arrange for direct payment to the
Hospital. This is known as cashless
facility.
d. Cumulative Bonus (CB) Health
Insurance policies may offer
“Cumulative Bonus” wherein for every
claim free year (i.e. a year in which no
claim is made); the Sum Insured is
increased by a certain percentage at
the time of renewal subject to a
maximum percentage (generally
50%). This means that if in a
particular year the insured makes no
claims then he/she gets an advantage
wherein the company offering the
insurance increases the “Insured
Amount” or amount agreed to be paid
against a claim by a certain
percentage. In case of a claim,
Cumulative bonus will be reduced by
10% at the next renewal.
e. Additional Benefits and other
standalone policies Insurance
companies offer various other benefits
as “Add-ons” or riders. There are also
stand alone policies that are designed
to give benefits like “Hospital Cash”,
“Critical Illness Benefits”, “Surgical
Expense Benefits” etc. These policies
can either be taken separately or in
addition to the hospitalization policy. A
few companies have come out with
products in the nature of Top Up
policies to meet the actual expenses
over and above the limit available in
the basic health policy.
(any four)

814-Insurance-MS-XII 8

Q. 23 Mr. Avinash is running business all CBSE Study Unit 4 Page no.87 4
over India. There are many types of Material
risks involved. We will suggest to Mr.
Avinash take policy which covers
multiple risks like fire, explosion,
burglary, riot and strike, earthquake,
flood, storm, accidental external
means, acts of terror, landslide etc.
We will suggest him to take a
comprehensive motor policy.
1. Select Type of Policy ·
2. Choose the Add-ons With your
Comprehensive Car Insurance Policy
3. Select Reputed Insurer and Pick a
Policy
4. Check Policy documents and basic
information
5. Make payments
6. Get a copy of policy documents.

Q. 24 Mr. Pankaj has insured his premises CBSE Study Unit 6 Page no.125 4
against the risk of burglary and after Material
taking policy he can’t make changes
to his premises without the permission
of Insurance Co.
If Mr. Pankaj makes changes to his
premises without the permission of
Insurance Co. then if a burglary takes
place in the premises then the
insurance co. will not be liable to pay
his claims. The procedure he needs to
follow is
 Ensure that the Policy is in force
at the time of theft and also that the
property that is lost is covered by the
Policy.
 Information of the theft or the
Burglary should be given to the police
and the Insurance Company
immediately on the occurrence of the
same.
 All documentation as per the
requirement of the Policy should be
furnished to the Insurance Company.
These may include bills, invoices of the
property etc.

814-Insurance-MS-XII 9

Study Materials
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