IC72 - Motor Insurance Exam -3

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Q 1. When can a revision petition be filed at the High Court according to [(National Insurance Co Ltd vs. Duwas Ram Yadav) 2007 ACJ 763 (P&H)]?

a) When the amount in dispute is less than Rs. 10,000/-

b) When no appeal is provided for under Sec.173

c) When the Tribunal committed a jurisdictional error

d) When there is collusion and fraud in the case

e) When the insurer fails to defend the claim

Q 2. Which Act replaced the Motor Vehicles Act, of 1939, and became effective from 1st July 1989?

a) Motor Vehicles Act, 2000

b) Motor Vehicles Amendment Act, 2008

c) Motor Vehicles Act, 1955

d) Motor Vehicles Act, 1988

e) Motor Vehicle Act, 1939

Q 3. Which of the following is not subject to the India Motor Tariff 2002?

A. Motor manufactures

B. Motor assembly factories

C. Motor bodybuilders

D. Petrol filling stations

E. Commercial vehicles

Q 4. According to Philip Crosby, what is the performance standard for quality?

a) "Close enough" to perfection

b) "Conformance to requirements"

c) "Goodness" of the product

d) "Appraisal" of the product

e) "Index" of quality

Q 5. What is the first level of appeal known in a Third Party Motor Accident Case?

a) First Appeal (Single Judge)

b) Letters Patent Appeal (LPA)

c) Special Leave Petition (SLP)

d) Revision Petition at High Court

e) Review of Order

Q 6. Which Act consolidated and rationalized various laws regulating road transport, including provisions for vehicles operating on eco-friendly fuels?

a) Motor Vehicles Act, 1988

b) Motor Vehicles Amendment Act, 2008

c) Amendment Act 54 of 1994

d) Amendment Act 39 of 2001

e) Amendment Act 27 of 2000

Q 7. What is the purpose of a Proposal form (GR2) in motor insurance?

A. To submit a claim after an accident

B. To renew an existing policy

C. To request a change in coverage

D. To provide information before the commencement of cover

E. To report a change of insurer

Q 8. What is one potential reward of higher quality service mentioned in the passage?

a) Increased competition in the market

b) Reduced service calls

c) Higher prices for products

d) Decreased customer loyalty

e) Lower returns to shareholders

Q 9. What is the appeal that challenges the order of the Single Judge before the Division Bench called?

a) First Appeal (Single Judge)

b) Letters Patent Appeal (LPA)

c) Special Leave Petition (SLP)

d) Revision Petition at High Court

e) Additional evidence in appeal

Q 10. What does the term "Gross Vehicle Weight" mean concerning any vehicle?

a) Total weight of the vehicle

b) Weight of the vehicle excluding load

c) Weight of the vehicle and load certified and registered by the Registering Authority

d) Weight of the vehicle and load as per manufacturer's specification

e) Weight of the vehicle when unladen

Q 11. What is the coverage provided by a Liability policy under the India Motor Tariff?

A. Loss or damage to the insured vehicle

B. Third Party Liability for bodily injury &/or death, Third Party property damage, and Personal Accident cover for owner-driver

C. Fire and/or Theft Only peril's

D. Coverage for vehicles laid up due to accident

E. None of the above

Q 12. What is one parameter for evaluating the quality of customer services in the insurance industry mentioned in the passage?

a) Number of competitors in the market

b) Time taken in delivery of policy documents

c) Quantity of policy options available

d) Marketing strategies of insurance companies

e) Economic policies of the country

Q 13. What provision allows for filing a Special Leave Petition before the Supreme Court?

a) Section 100 A of the Code of Civil Procedure

b) Section 168(3) of the MV Act

c) Section 170 of the MV Act

d) Order 41 Rule 27 of CPC

e) Section 62 of the MV Act

Q 14. What is the necessity for obtaining a permit for a transport vehicle according to Section 66 (1) of the Motor Vehicle Act, 1988?

a) Permits are required for vehicles carrying passengers only

b) Permits are not required for goods vehicles

c) Permits are necessary for all motor vehicles used as transport vehicles in public places

d) Permits are only required for vehicles exceeding 3000 kilograms in weight

e) Permits are required for vehicles registered in other states

Q 15. What is the premium chargeable for both Fire and/or Theft-only perils if the vehicle is laid up?

A. 0.75% of IDV

B. 0.50% of IDV

C. 1.00% of IDV

D. 0.25% of IDV

E. 1.50% of IDV

Q 16. What is one element of customer service related to empathy mentioned in the passage?

a) Offering value-added services

b) Providing clear policy information

c) Ensuring the financial soundness of the company

d) Delivering policy documents promptly

e) Giving personalized consulting

Q 17. What step involves the appointment of an investigator to collect relevant data for quantifying compensation in Third Party Claims?

a) Submission of documents by the insured

b) Drivers Licence

c) Receipts of summon

d) Appointment of Investigator

e) Drafting written statement

Q 18. According to the proposed bill, what recommendation does the Standing Committee and Law Commission of India provide for penalties related to speeding and drunken driving?

A) Implementing a system of demerit points for traffic violations.

B) Introducing a fixed penalty amount for all speeding and drunken driving cases.

C) Basing penalties on incremental slabs for exceeding speed limits and drunken driving.

D) Removing penalties for speeding and drunken driving entirely.

E) None of the above.

Q 19. What is the purpose of the Sunset Clause mentioned in the No Claim Bonus (NCB) section?

a) It specifies the duration for which NCB remains valid

b) It defines the procedure for transferring NCB

c) It outlines the discount percentages for NCB

d) It explains the process for claiming NCB after a policy expires

e) It details the premium computation process

Q 20. Should the industry devise a separate driver's liability cover in addition to the Act liability?

a) Yes, to protect the legal right of the vehicle owner

b) No, the current policies are sufficient

c) Yes, but only for commercial vehicles

d) No, it would complicate insurance policies

e) None of the above

Q 21. What method is used for calculating compensation in motor vehicle accident cases?

a) Hybrid Method

b) Multiplier Method

c) Nance Method

d) Structured Compensation Method

e) No Fault Liability

Q 22. When can you apply for an International Driving Permit (IDP)?

a) Up to six months in advance

b) Up to one year in advance

c) Up to three months in advance

d) On the day of travel

e) After your existing driver's license has expired

Q 23. Which of the following factors related to the geographical area of operation is considered in underwriting motor insurance?

a) Parking location

b) Drivers' health condition

c) Vehicle safety features

d) Auto crash test compliance

e) Occupation of the proposer

Q 24. What is the definition of a "hit and run motor accident" according to Section 161 of the Motor Vehicles Act?

A) An accident involving two motor vehicles where the identities cannot be ascertained.

B) An accident resulting from the use of a motor vehicle, where the identities cannot be determined despite reasonable efforts.

C) An accident caused by a motor vehicle with no known owner.

D) An accident involving a pedestrian and a motor vehicle where the identities are unknown.

E) An accident where the driver of a motor vehicle flees the scene.

Q 25. According to the dictionary meaning of income, which elements should be taken into consideration for income tax or professional tax?

a) Only those benefits that are fully taxable should be considered.

b) Benefits that are exempt from taxation should not be included.

c) All benefits, taxable or not, should be included for taxation purposes.

d) Only benefits in the form of money should be considered.

e) Benefits that are not convertible into money should not be included.


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