IC72 - Motor Insurance Exam -10

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Q 1. What is the significance of the amendment made to the Motor Vehicles Act in 1994 regarding the period of limitation for filing motor accident claims?

a) It introduced a period of limitation for filing claims.

b) It removed the period of limitation for filing claims.

c) It extended the period of limitation for filing claims.

d) It imposed stricter limitations on filing claims.

e) None of the above.
 
Q 2. According to Section 191 of IPC, what constitutes giving false evidence?

a) Making a false statement under oath

b) Providing an erroneous opinion

c) Fabricating false evidence

d) Altering a document

e) None of the above
 
Q 3. What is the definition of a "Motor Vehicle" according to the Motor Vehicle Act 1988, Section 2(27)?

a) A vehicle adapted for use on roads, regardless of power source.

b) Any vehicle with an internal power source.

c) A vehicle running on fixed rails.

d) Any mechanically propelled vehicle.

e) A vehicle with an external power source.
 
Q 4. What is an "Insurance Risk Score" and how is it used in the underwriting process?

a) It evaluates an insured's likelihood of making claims based on credit history

b) It determines the make and model of the insured vehicle

c) It assesses the condition of the insured vehicle

d) It calculates the annual mileage driven by the insured

e) It predicts the age of the insured driver
 
Q 5. Under what circumstances can an insurer file a revision petition or a writ petition under Article 227 of the Constitution of India, even if the amount in dispute is less than Rs. 10,000/-?

a) If no insurance is involved in the case.

b) If there is no coverage for a pillion rider.

c) If an unauthorized occupant is involved in a goods vehicle.

d) All of the above.

e) None of the above.
 
Q 6. What is the provision in the Civil Procedure Code (CPC) regarding fraud?

a) Section 464

b) Section 156

c) Section 102

d) Section 48(2)

e) None of the above
 
Q 7. Why is the registration mark and number of the vehicle important in the proposal form?

a) It identifies the type of vehicle.

b) It provides information about the engine capacity.

c) It helps verify the vehicle in case of an accident.

d) It determines the seating capacity.

e) It indicates the year of manufacture.
 
Q 8. What is the most common cause of motor vehicle fires?

a) Collision with another vehicle.

b) Failure of the electrical system.

c) Mechanical breakdown.

d) Loss caused by frost.

e) None of the above.
 
Q 9. Which principle emphasizes that the amount of compensation should neither be inadequate nor token?

a) Principle of Assessability

b) Principle of Uniformity

c) Principle of Predictability

d) Principle of Justifiability

e) Principle of Moderation
 
Q 10. What is one of the underwriting fraud issues related to the issuance of insurance policies?

a) Issuance of cover notes with accurate information

b) Acceptance of premium by backdated Cheque

c) Thorough knowledge of MACT cases

d) Effective investigation conducted after the accident

e) None of the above
 
Q 11. Which of the following is an example of a non-premium-bearing endorsement?

A) Addition of LPG/CNG kit

B) Transfer of ownership

C) Change of RTO location

D) Addition of hypothecation

E) Premium Computation adjustment
 
Q 12. Under what circumstances are roadside assistance services typically not provided?

A. During extreme weather conditions

B. In case of minor vehicle breakdowns

C. When services are available under other insurance policies

D. When the vehicle is being used for racing

E. When the insured has prior consent from the company
 
Q 13. In which situation is it mandatory for insurance companies to file an application under Section 170 in the Lower Court?

A) When the insured wishes to contest the claim

B) When the insured wishes to file an appeal on quantum without the cooperation of the insured

C) When the insured's vehicle is involved in an accident

D) When the insured's vehicle is not covered by insurance

E) None of the above
 
Q 14. In what circumstance should no cover note be issued for third-party cases?

a) When the premium cheques are dishonored

b) When the vehicle is not properly identified

c) When the vehicle is involved in a major accident

d) When the driver's identity is unclear

e) None of the above
 
Q 15. When was the Indian Motor Tariff withdrawn by the Insurance Regulatory and Development Authority (IRDAI)?

a) 1st January 2007

b) 1st April 2009

c) 1st July 2002

d) 1st January 2000

e) 1st April 2005



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