IC72 - Motor Insurance Exam -4

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Q 1. What do Knock for Knock Agreements aim to avoid in motor insurance?

a) Vehicle inspections

b) Premium payments

c) Litigation between insurers

d) Vehicle registration

e) Vehicle recalls

Q 2. What is an important consideration in underwriting based on the general nature of goods carried by a vehicle?

a) The risk of fire

b) The risk of theft

c) The risk of mechanical breakdown

d) The risk of poor visibility

e) The risk of driver inexperience

Q 3. When can a claimant move either the Employee's Compensation Commissioner or the Motor Accident Claims Tribunal (MACT)?

a) When the claimant is an employee involved in a motor accident

b) When the claimant is a dependent under the Employee's Compensation Act

c) When the claimant is not at fault for the accident

d) When the claimant has already received compensation under the Employee's Compensation Act

e) When the claimant is a legal representative

Q 4. When calculating just compensation for dependents, what portion of the deceased's net income should be considered for the benefit of the dependents?

a) All of it.

b) Half of it.

c) One-third of it.

d) None of it.

e) The entire net income, minus statutory deductions.

Q 5. What type of permit is issued for luxury buses with specific facilities like public address systems, drinking water, and push full-back seats?

a) Stage Carriage Permit

b) All India Tourist Permit

c) Rent-a-Cab Permit

d) Institution / School Bus Permit

e) Temporary Permit

Q 6. How many days of notice are required for the cancellation of a policy by either party in India?

A. 3 days

B. 5 days

C. 7 days

D. 10 days

E. 15 days

Q 7. What is one-way insurance companies can create value for customers, according to the Harvard study mentioned in the passage?

a) Offering the lowest prices in the market

b) Treating customers with respect

c) Providing the widest range of products

d) Keeping operations costs low

e) Reducing convenience for customers

Q 8. In the case of Third Party Claims, when can the insurer intervene?

- a) At the time of recording of evidence

- b) After the award has been passed

- c) At any stage of the proceedings

- d) Before the filing of the claim petition

- e) After the judgment is delivered

Q 9. What are some of the proposed changes in the Motor Vehicles (Amendment) Bill, 2008 regarding fines for traffic offenses?

a) Fines have been reduced across the board.

b) Fines for traffic offenses have been kept the same.

c) Fines for traffic offenses have been significantly increased.

d) Fines for traffic offenses have been completely abolished.

e) Fines for traffic offenses have been delegated to state governments.

Q 10. Under what conditions can a policy be canceled with a refund of the premium?

A. No claims have been made and the vehicle is insured elsewhere

B. The policy has been in force for at least 1 year

C. The insured has paid the entire premium upfront

D. The policy has been in force for at least 6 months

E. The vehicle has not been used during the policy period

Q 11. What is one aspect mentioned for creating consumer delight in the context of claims settlement?

a) Settling claims beyond 90 days

b) Providing Claims Counselors to help clients

c) Delaying settlement due to lack of documentation

d) Denying liability for recovered vehicles

e) Issuing cover notes promptly

Q 12. What is the time limit for filing a review of an order under Section 15 of the Act?

- a) Within 30 days

- b) Within 60 days

- c) Within 90 days

- d) Within 120 days

- e) Within 180 days

Q 13. What is the purpose of the Solatium Scheme mentioned in the document?

a) To establish a regulatory framework for bus bodybuilders.

b) To provide compensation to victims of hit-and-run motor accidents.

c) To streamline the process of issuing driving licenses.

d) To set limits on fines for traffic offenses.

e) To regulate the plying of stage and contract carriages.

Q 14. Which document is to be issued only in Form 51 in terms of rule 141 of the Central Motor Vehicle Rules 1989?

A. Cover Note

B. Proposal Form

C. Certificate of Insurance

D. Policy Form

E. Endorsement Form

Q 15. What is emphasized as the insurer's primary service in terms of claims settlement?

a) Issuing cover notes

b) Settling claims expeditiously

c) Conducting investigations

d) Reviewing penal interest rates

e) Mediating legal disputes

Q 16. What is the correct procedure to challenge an award before the High Court?

- a) Filing a Special Leave Petition

- b) Filing a First Appeal

- c) Filing a Revision Petition

- d) Filing a Review Petition

- e) Filing a Letters Patent Appeal

Q 17. What is the maximum fine proposed for rash and negligent driving under the Motor Vehicles (Amendment) Bill, 2008?

a) Rs. 2,000

b) Rs. 5,000

c) Rs. 10,000

d) Rs. 15,000

e) Rs. 20,000

Q 18. What is the maximum limit of the No Claim Bonus (NCB) that can be accumulated on the Own Damage premium?

a) 20%

b) 35%

c) 45%

d) 50%

e) 25%

Q 19. In Germany, what is the maximum amount of annuity for compensation in case of death or injury?

a) Euro 30,000 pa

b) Euro 180,000 pa

c) Euro 600,000

d) Euro 3,000,000

e) Euro 1,000,000

Q 20. What is the purpose of granting damages in pecuniary terms under the Motor Vehicle Act, of 1988?

a) To compensate the victim for pain and suffering

b) To provide material benefits to the dependents of the victim

c) To cover funeral expenses of the deceased

d) To reimburse medical expenses of the injured

e) To compensate for property damage

Q 21. What authority will be empowered to issue driving certificates under the proposed amendments?

a) Regional Transport Office

b) State Governments

c) Insurance Regulatory and Development Authority

d) Automobile Associations and Institutions

e) Central Institute of Road Transport

Q 22. In the event of a vehicle owner's death, who can the NCB entitlement be transferred to?

a) Spouse

b) Children

c) Parents

d) Legal heir

e) Sibling

Q 23. What is the purpose of the Motor Insurance Bureau (MIB) in England?

a) Settling property damage claims

b) Compensating uninsured or untraced vehicle victims

c) Providing insurance for vehicles

d) Regulating motor insurance rates

e) Issuing driving licenses

Q 24. What is the difference between pecuniary and non-pecuniary damages?

a) Pecuniary damages refer to physical injuries, while non-pecuniary damages refer to property damage.

b) Pecuniary damages are easy to quantify in monetary terms, while non-pecuniary damages are not easily quantifiable.

c) Pecuniary damages are awarded for emotional distress, while non-pecuniary damages cover medical expenses.

d) Pecuniary damages compensate for loss of income, while non-pecuniary damages cover funeral expenses.

e) Pecuniary damages are awarded for loss of consortium, while non-pecuniary damages cover loss of dependency.

Q 25. What is the purpose of the Bus Body Builders Accreditation System?

a) To regulate the issuance of learner's licenses.

b) To provide compensation to accident victims.

c) To establish a system for effective implementation of the Solatium Scheme.

d) To ensure that buses are built according to safety norms.

e) To increase fines for traffic offenses.


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