IC72 - Motor Insurance Exam -2

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Q 1. What is the primary purpose of V2V (Vehicle-to-Vehicle) technology as mentioned in the passage?

a) Allowing vehicles to communicate with nearby vehicles

b) Connecting vehicles to the roadside infrastructure

c) Providing information about public transportation routes

d) Enhancing the entertainment features of automobiles

e) Enabling autonomous driving in vehicles

Q 2. What can a claimant do if the insured owner and driver of a vehicle do not contest a claim in a MACT case?

a) File a criminal case against them.

b) Seek a no-fault liability order.

c) Appeal to the Supreme Court.

d) Surrender the claim.

e) Contact the local police for assistance.

Q 3. Under what circumstances is a temporary permit issued for a transport vehicle?

a) To convey passengers on special occasions

b) For vehicles with a gross vehicle weight exceeding 3000 kilograms

c) For permanent business needs

d) To replace expired permits

e) To transport goods within the state

Q 4. How long is a Motor Cover Note issued in India?

A. 7 days

B. 15 days

C. 30 days

D. 45 days

E. 60 days

Q 5. What is the primary role of the Insurance Ombudsman in the context of grievance redressal?

a) Adjudicating legal disputes

b) Acting as a counselor and mediator

c) Issuing policies to claimants

d) Reviewing penal interest rates

e) Settling claims within 15 days

Q 6. How long does the insured have to file a petition in case of No-Fault Liability according to the M.V. Act 1988?

- a) Within 15 days

- b) Within 30 days

- c) Within 60 days

- d) Within 90 days

- e) Within 120 days

Q 7. What is the proposed additional penalty for rash and negligent driving according to the bill?

A) Imprisonment for up to one year.

B) A fine of up to Rs. 5,000 deposited in the Solatium Fund.

C) Revocation of the driver's license.

D) Mandatory attendance of a driving safety course.

E) None of the above.

Q 8. Which add-on covers waive the depreciation for replacement of parts damaged in an accident, provided the vehicle is below 3 years old and not more than two OD claims have been lodged during the policy period?

a) Return to invoice

b) No Claim Bonus Protection

c) Depreciation reimbursement

d) Repair of glass, rubber, fiber & plastic parts

e) Emergency transport and hotel expenses

Q 9. What is the definition of subrogation in motor insurance?

a) The transfer of legal rights of an insured against a third party to the insurer

b) The transfer of legal rights of an insured against the insurer

c) The waiver of legal rights in case of a claim

d) The payment made by the insurer to the insured after a claim

e) None of the above

Q 10. Which factor is considered when selecting a multiplier in fatal cases?

a) Age of the claimant

b) Age of the deceased

c) Number of dependents

d) Type of accident

e) Income of the deceased

Q 11. Which types of vehicles are excluded from the Knock for Knock Agreement?

a) Two-wheelers and private cars

b) Goods vehicles and public service vehicles

c) Commercial vehicles and taxis

d) Luxury cars and sports cars

e) Vehicles used for tourism purposes

Q 12. Why is the motor insurance business considered to be generally unprofitable?

a) Due to cutthroat competition in premium for own damage section

b) Due to heavy third-party expenses

c) Due to high claims in cases of theft

d) Due to low demand for motor insurance

e) Due to low repair costs

Q 13. What does Section 140 of the Motor Vehicles Act, 1988, relate to?

a) Duty to furnish insurance information.

b) Liability of insurers in case of insolvency.

c) Liability without fault in case of accidents.

d) Settlement between insurers and insured persons.

e) Effect of death of the insured person.

Q 14. What is the purpose of the Solatium Fund Scheme under Section 163 (2) of the Motor Vehicles Act, 1988?

a) To provide relief to victims of motor vehicle accidents

b) To regulate traffic rules

c) To establish fault liability in accidents

d) To determine compensation based on negligence

e) None of the above

Q 15. What does the doctrine of proximate cause determine in motor insurance claims?

a) The party responsible for the loss

b) The exact monetary value of the loss

c) Whether the loss is covered under the policy

d) The age of the insured vehicle

e) The number of parties involved in the claim

Q 16. What is a major concern for insurance companies considering reduced premiums for driverless vehicles?

a) Compatibility of vehicles for constant cross-communication

b) Increasing competition in the insurance industry

c) The potential for higher risks posed by driverless vehicles

d) The need for more comprehensive insurance contracts

e) The potential for more accidents on the roads

Q 17. What is one potential benefit of car-share arrangements mentioned in the passage?

a) Reducing traffic congestion in urban neighborhoods

b) Increasing the number of private vehicles in congested areas

c) Providing individual modes of transport like personal rapid transit

d) Decreasing the need for public transportation options

e) Offering urban residents the option to "share" a vehicle

Q 18. Under what circumstances can additional evidence be produced at the appellate stage according to ORDER 41 Rule 27 of CPC?

a) If evidence was deliberately withheld at the Trial Court

b) If evidence is irrelevant to the case

c) If evidence is readily available

d) If evidence was not collected in time

e) If the evidence supports the claimant's case

Q 19. Which Act came into force in July 1939 and made provisions for various matters relating to motor vehicles?

a) Motor Vehicles Act, 1988

b) Motor Vehicles Act, 2000

c) Motor Vehicle Act, 1939

d) Motor Vehicles Amendment Act, 2008

e) Motor Vehicles Act, 1955

Q 20. What may need to be revisited in insurance contracts if driverless technology is introduced?

a) Premium rates

b) Terms and conditions

c) Deductible amounts

d) Coverage limits

e) Policy expiration dates

Q 21. What was the doctrine known as "Caveat Emptor" in the context of quality assurance?

a) Buyers are responsible for the quality of goods.

b) Sellers are responsible for supplying quality goods.

c) Both buyers and sellers are equally responsible for quality.

d) Sellers are not concerned with the quality of goods.

e) Buyers should be cautious of sellers.

Q 22. What is the time frame for filing an appeal against an award?

a) 30 days

b) 60 days

c) 90 days

d) 120 days

e) 180 days

Q 23. When did Chapter VIII of the Motor Vehicle Act, of 1939, which provided for insurance of motor vehicles against third-party risks, come into force?

a) 1st July, 1946

b) 1st July, 1939

c) 1st October, 1982

d) 1st July, 1989

e) 1st January, 1939

Q 24. Motor Vehicle Insurance in India was governed by India Motor Tariffs effective from 01-08-1989 till _________.

I. December 2005

II. December 2006

III. December 2007

IV. December 2008

V. December 2009

Q 25. What did the Japanese Quality Revolution lead to in terms of competition?

a) Increased competition in quantity

b) Decreased competition in quality

c) Increased competition in quality

d) Decreased competition in innovation

e) No change in the level of competition


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