IC72 - Motor Insurance Exam -5
IC72 - Motor Insurance Exam
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Q 1. What evidence can be provided to transfer the No Claim Bonus (NCB) from a previous insurance company?
a) A renewal notice
b) A letter confirming NCB entitlement
c) A written declaration
d) All of the above
e) None of the above
Q 2. In France, under what circumstances is contributory negligence applied in claims?
a) Driver claims
b) Property damage claims
c) Injury claims
d) Uninsured vehicle claims
e) Unidentified vehicle claims
Q 3. What is considered when awarding compensation for pain and suffering and loss of amenity of life?
a) Age of the claimant
b) Cost of medical treatment
c) Duration of the accident
d) Effect of the accident on daily life
e) Availability of insurance coverage
Q 4. What major change does the proposed bill introduce regarding the suspension of driving licenses for drunken driving?
A) It shifts the authority to suspend licenses from the licensing authority and court to any authorized authority checking the license.
B) It increases the period of suspension to up to six months.
C) It eliminates the provision for suspending licenses altogether.
D) It introduces a fine instead of suspension for drunken driving.
E) None of the above.
Q 5. For which types of vehicles is the Compulsory Deductible applicable?
a) Private cars and motorized two-wheelers
b) Commercial vehicles and taxis
c) Goods carrying vehicles
d) Passenger-carrying vehicles
e) All of the above
Q 6. In Australia, who maintains the fund and payout for third-party personal injury liability?
a) The Motor Insurance Bureau
b) The State Governments of South Australia and Victoria
c) The Queensland government
d) The New South Wales government
e) The South African government
Q 7. Under what permissible heads can compensation be assessed in case of death?
a) Loss of dependency, loss of expectancy, loss of consortium, medical expenses
b) Loss of income, loss of future earning capacity, future medical expenses, loss of marital prospects
c) Loss of consortium, loss of academic year, loss of life span, funeral expenses
d) Loss of dependency, loss of expectancy, loss of consortium, funeral expenses
e) Loss of income, loss of life span, loss of academic year, medical expenses
Q 8. What does the International Driving Permit (IDP) serve as when driving in foreign countries?
a) A replacement for the driver's license
b) A document for obtaining a visa
c) A translation of the national driver's license
d) proof of insurance coverage
e) A travel pass for public transportation
Q 9. What is the first step in underwriting motor insurance?
a) Acquiring knowledge of the vehicle's make and model
b) scrutiny of the proposal form filled by the vehicle owner
c) Determining the vehicle's age
d) Assessing the color of the vehicle
e) Evaluating the driving record of the insured
Q 10. Under Section 163(A) of the Motor Vehicles Act, 1988, what is the purpose of the structured formula for compensation?
a) To reduce compensation for victims.
b) To determine compensation for funeral expenses only.
c) To expedite compensation to road accident victims.
d) To limit the liability of motor vehicle owners.
e) To increase compensation for non-earning persons.
Q 11. What is the definition of income according to the Advanced Law Lexicon (3rd Ed.) by P. Ramanatha Aiyar?
a) Income is restricted to receipts from business activities only.
b) Income encompasses benefits obtained from a company, whether convertible into money or not, and sums paid in respect of obligations within the state from any profession, trade, or calling other than agriculture.
c) Income refers only to periodical receipts from one's work.
d) Income includes all financial benefits, whether taxable or not, received from any source.
e) Income is defined as gross income minus statutory deductions.
Q 12. What type of vehicles are excluded from the Knock for Knock Agreement, leading to the possibility of litigation?
a) Motorcycles
b) Luxury cars
c) Commercial vehicles
d) Vintage cars
e) Public service vehicles
Q 13. Which of the following is NOT a factor considered in determining motor insurance premiums?
a) Vehicle make and model
b) Driver's gender
c) Vehicle color
d) Geographical area
e) Vehicle age
Q 14. What is the purpose of Motor Accidents Claims Tribunals (MACT)?
a) To handle criminal cases related to motor accidents
b) To provide compensation for property damage up to Rs. 6,000/-
c) To adjudicate claims for compensation in motor accidents
d) To file suits in civil courts for motor accident claims
e) To handle third-party claims for personal injury
Q 15. According to the Supreme Court, how does the assessment of compensation differ between children aged 5 to 10 years and those aged 10 to 15 years?
a) The income of the deceased child is capable of assessment for children aged 5 to 10 years.
b) The financial loss suffered by the parents is capable of mathematical computation for children aged 10 to 15 years.
c) The uncertainties regarding academic pursuits, achievements, and career advancement make assessment difficult for children aged 5 to 10 years.
d) The uncertainties regarding academic pursuits, achievements, and career advancement make assessment difficult for children aged 10 to 15 years.
e) There is no difference in the assessment of compensation between the two age groups.
Q 16. Which category of motor vehicles includes vehicles used solely for social, domestic, and pleasure purposes, as well as for business or professional purposes (excluding the carriage of goods other than samples)?
a) Private cars
b) Motorcycles/scooters
c) Commercial vehicles
d) Tankers
e) Tippers
Q 17. How do auto insurers use "Claims Scores" in the underwriting process?
a) To evaluate the color preferences of the insured
b) To predict the insured's future claims level based on credit information and claims history
c) To determine the engine capacity of the insured vehicle
d) To assess the driving habits of the insured
e) To calculate the distance driven by the insured annually
Q 18. What is the purpose of the Divisional in-house Conciliatory Committee (DICC) and Regional in-house Conciliatory Committee (RICC) established by General insurers?
a) To handle motor accident claims exclusively.
b) To expedite the settlement of claims through negotiation and mediation.
c) To investigate fraudulent claims.
d) To determine territorial jurisdiction for claims.
e) None of the above.
Q 19. Under the Motor Vehicle Act, of 1988, when should information regarding an accident be forwarded to the Claims Tribunal and Insurer?
a) Within 10 days
b) Within 20 days
c) Within 30 days
d) Within 40 days
e) Within 50 days
Q 20. What does the proposed bill aim to change regarding consignor liability for exceeding weight limits?
A) It seeks to impose additional liability on the consignor of goods in some cases.
B) It entirely removes the concept of consignor liability.
C) It increases the stipulated weight limit for vehicles.
D) It shifts all liability for exceeding weight limits to the owner of the vehicle.
E) None of the above.
Q 21. Which add-on covers provide reimbursement for the difference between the claim admissible and the sale invoice price of the vehicle or new replacement value, in case the insured vehicle is a Total Loss (TL) or Constructive Total Loss (CTL)?
a) Depreciation reimbursement
b) Return to invoice
c) No Claim Bonus Protection
d) Repair of glass, rubber, fiber & plastic parts
e) Emergency transport and hotel expenses
Q 22. Under what circumstances does the principle of contribution not apply to third-party liability?
a) Death or bodily injuries arising from the use of the motor vehicle
b) Damage to any property of a third party
c) Liability for death arising out of employment of the employee of the insured
d) Liability for bodily injury to any passenger of a public service vehicle
e) All of the above
Q 23. What is the maximum multiplier prescribed by the Supreme Court?
a) 15
b) 16
c) 17
d) 18