IC72 - Motor Insurance Exam -1

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Q 1. When is the loss or damage to accessories covered by the policy?

a) Only if the accessories are on the motor car

b) Only if the accessories are detached and kept separately in a garage

c) Only if the accessories are new and directly supplied by the manufacturer

d) Only if the accessories are essential for the running of the motor car

e) None of the above

Q 2. What is one of the key responsibilities of insurers about TAC data submission?

a) Providing data every month

b) Using their codes for data submission

c) Forwarding data every quarter

d) Including the name and address of the proposer in the data

e) Using TAC codes exclusively for data submission

Q 3. What is the power of a Motor Accidents Claims Tribunal (MACT) as per Section 169(2) of the Motor Vehicle Act 1988?

a) MACT can issue summons to another state.

b) MACT can recall and re-examine witnesses.

c) MACT can grant compensation directly to claimants.

d) MACT can order the sale of the involved vehicles.

e) MACT can issue arrest warrants for the parties involved.

Q 4. What was the first type of insurance coverage introduced in motor insurance history?

a) Third-party liability insurance

b) Comprehensive insurance

c) Accidental damage insurance

d) Fire insurance

e) Theft insurance

Q 5. What is the purpose of a deductible in Section - I of the policy?

a) To increase the insurer's liability

b) To reduce the premium rates

c) To limit the insured's liability

d) To determine the coverage duration

e) To establish payment timelines

Q 6. What type of data does the TAC (Insurance Information Bureau) collect under the "Underwriting Policy Data" category?

a) Claims paid data

b) Input data for claims processing

c) Vehicle details, policy year, and number

d) Output data for claims processing

e) Data on drivers' claims history

Q 7. In what situations can an application for non-joinder of necessary parties be made in a Motor Accidents Claims Tribunal (MACT)?

a) When the claimant is a minor.

b) When the driver is not the owner of the vehicle.

c) When there is collusion between the insured and claimants.

d) When there is a dispute over the quantum of compensation.

e) When the accident involves more than two vehicles.

Q 8. Which company was established in 1903 mainly to transact motor insurance?

a) Car and General Insurance Corporation Ltd.

b) United Motors Insurance

c) National Motor Insurers

d) Motor Vehicle Assurance Co.

e) General Auto Coverage Ltd.

Q 9. What should the insured do if they receive a notice of claims according to the policy conditions?

a) Wait until the insurer contacts them

b) Ignore the notice as it's not mandatory

c) Notify the insurer with full particulars as soon as possible

d) Keep the notice confidential to avoid complications

e) Send the notice to the insured's attorney first

Q 10. What is the purpose of capturing information on incurred claims in the "Underwriting Policy Data"?

a) To assess the age of the vehicle

b) To determine the IDV of the vehicle

c) To evaluate the effectiveness of anti-theft devices

d) To analyze past loss experience for underwriting decisions

e) To calculate commission rates

Q 11. Under what circumstances can an application be filed to take over the defenses available to the insured or driver in an MACT case?

a) When the claimant fails to appear for cross-examination.

b) When the insurance company admits liability.

c) When the insured is found guilty of contributory negligence.

d) When there is a delay in filing the claim application.

e) When there is a dispute over the validity of the driving license.

Q 12. What led to the introduction of compulsory third-party insurance in the UK?

a) World War I

b) Introduction of motor vehicles

c) Increase in road accidents

d) Establishment of insurance companies

e) Passing of the Road Traffic Act, 1930

Q 13. How are premium rates determined for Motor Trade Internal Risks Insurance?

a) Based on the number of vehicles insured

b) Based on the age of the insured employees

c) Based on the location of the insured premises

d) Based on the insured property's market value

e) Based on the insured's credit score

Q 14. What is one of the benefits of generating incurred claims ratios?

a) Adjusting for previous years' losses

b) Determining the registration zone of the vehicle

c) Assessing the fitness details of the vehicle

d) Identifying the make and model of the vehicle

e) Evaluating the experience of drivers

Q 15. What is the purpose of framing issues in a Motor Accidents Claims Tribunal (MACT) case?

a) To determine the quantum of compensation.

b) To facilitate adjudication and decision-making.

c) To compel the attendance of witnesses.

d) To order the sale of involved vehicles.

e) To issue arrest warrants for the parties involved.

Q 16. What triggered the transition from Tariff to non-tariff policies in motor insurance in India?

a) Increase in vehicle sales

b) Introduction of new technology

c) Directive from IRDA

d) Passage of Motor Vehicles Act, 1988

e) Establishment of Car and General Insurance Corporation

Q 17. Which technology alerts drivers to approaching cross traffic while backing out of a parking space?

a) Rear-mounted radar

b) Night vision with pedestrian detection

c) Automatic high-beam control

d) Parental control

e) GPS vehicle tracking

Q 18. Why is it important for insurers to have a well-planned and comprehensive information technology platform?

a) To determine premium rates for motor insurance

b) To track the location of insured vehicles

c) To provide additional coverage options

d) To generate policy documents quickly

e) To serve as a national repository for claims data

Q 19. When can an application be filed for compelling the discovery and production of documents in a MACT case?

a) When the insurance company admits liability.

b) When there is a delay in filing the written statement.

c) When certain documents are in the possession of the other party.

d) When the claimant fails to appear for cross-examination.

e) When the accident involves more than two vehicles.

Q 20. What does the principle of Uberrimae Fides (utmost good faith) require in motor own damage insurance contracts?

a) Complete disclosure of material facts

b) Minimal disclosure of material facts

c) No disclosure of material facts

d) Disclosure of non-material facts

e) Disclosure only after a claim is made

Q 21. What system highlights pedestrians on a dashboard display in a vehicle's night vision?

a) Rear-mounted radar

b) Night vision with pedestrian detection

c) Automatic high-beam control

d) Parental control

e) GPS vehicle tracking

Q 22. What is one potential benefit of fully autonomous vehicles mentioned in the passage?

a) Reducing the need for public transportation

b) Increasing the number of private cars on the road

c) Eliminating the risk of driving under the influence

d) Decreasing the use of virtual reality for travel

e) Expanding the number of vehicles requiring drivers

Q 23. What is the evidential value of an investigation report obtained through an insurance company's investigator in a MACT case?

a) It is always considered as strong evidence.

b) It has no evidential value.

c) It is admissible as evidence but needs to be corroborated.

d) It is admissible without any further verification.

e) It is admissible only if signed by both parties.

Q 24. Who has an insurable interest in a motor vehicle under a hypothecation agreement?

a) Owner

b) Financier

c) Buyer

d) Seller

e) Joint Owner

Q 25. What technology automatically adjusts high-beam headlights in response to approaching traffic?

a) Rear-mounted radar

b) Night vision with pedestrian detection

c) Automatic high-beam control

d) Parental control

e) GPS vehicle tracking


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