IC72 - Motor Insurance Exam -7

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Q 1. Why is the driver's age an important factor in motor insurance underwriting?

a) It affects the color of the vehicle

b) It determines the driver's gender

c) Younger drivers tend to be more accident-prone

d) Older drivers tend to drive more recklessly

e) It influences the type of vehicle driven

Q 2. In dependency under the Employee's Compensation Act, which of the following is considered essential for a person to be entitled to compensation?

a) Proof of actual reliance on the deceased for upkeep and survival

b) Mere relationship with the deceased

c) Proof of negligence of the tort-feasor

d) Proof of a criminal trial outcome

e) Proof of conviction of the tortfeasor

Q 3. In case of the death of an infant, what principle did the House of Lords lay down regarding compensation for the parents?

a) Compensation is only valid if the parents derived an actual pecuniary benefit during the child's lifetime.

b) Compensation is valid if the parents can establish a reasonable expectation of pecuniary benefit if the child has survived.

c) Compensation is not applicable in cases of infant deaths.

d) Compensation is based on the actual income earned by the child.

e) Compensation is determined solely by the child's age at the time of death.

Q 4. Which category of vehicles is used for the transportation of non-solid goods such as liquids (water, milk, edible oils, etc.) and gases in liquid form (LPG, oxygen, nitrogen, etc.)?

a) Goods carrying vehicles

b) Tankers

c) Tippers

d) Trailers

e) Passenger-carrying vehicles

Q 5. 1. What is the Doctrine of Cause of Accident in motor insurance claims?

a) The procedure for filing a claim

b) The importance of determining the cause of the accident and associated damages

c) The role of the insured in assessing damages

d) The process of vehicle inspection

e) None of the above

Q 6. What is the role of Lok Adalat in settling motor third-party claims?

a) It serves as a platform for negotiation and mediation.

b) It handles only minor injury claims.

c) It determines territorial jurisdiction for claims.

d) It imposes limitations on filing claims.

e) None of the above.

Q 7. What type of fraud involves inflating or providing bogus medical bills and certificates?

a) Conversion of Medical Cases for Wrongful Gain

b) Frauds in Road Accidents

c) Multiple Cases (Forum Shopping)

d) Conversion of Non-Road Traffic Accidents

e) None of the above

Q 8. What information about the proposer is typically required in the proposal form?

a) Previous convictions for driving offenses.

b) Address, occupation, and physical disability.

c) Engine and chassis numbers.

d) Extra benefits for which an additional premium is charged.

e) Colour of the vehicle and speedometer reading.

Q 9. What is the purpose of a "Cash Loss" settlement in motor insurance claims?

a) To provide an option for the insured to receive a cash amount lower than the assessed claim amount.

b) To facilitate quicker settlement without insisting on repairs.

c) To cover the expenses like sales tax, excise, etc., which the insured may not have to incur if they choose to repair the vehicle.

d) To handle cases where salvage value is not easily determined.

e) All of the above.

Q 10. What are the three basic principles governing the determination of compensation in injury disablement claims?

a) Principle of Assessability

b) Principle of Uniformity

c) Principle of Predictability

d) All of the above

e) None of the above

Q 11. What is the primary reason for the occurrence of Fraud in TP Claims?

a) Lack of proper investigation

b) Advocates' involvement

c) Lack of knowledge on entitlement

d) Insufficient documentation

e) None of the above

Q 12. What is the purpose of the International Translation of Driver's License?

a) To serve as a replacement for the national driver's license

b) To provide proof of residency in a foreign country

c) To facilitate international travel without a driver's license

d) To confirm that the driver holds a valid license in their home country

e) To offer additional driving privileges

Q 13. Why is the age of a vehicle an important factor in motor insurance underwriting?

a) It determines the color of the vehicle

b) It affects the driver's health condition

c) Older vehicles may have more defects and metal fatigue

d) It influences the use of IT in the vehicle

e) It impacts the availability of spare parts

Q 14. What is the fixed compensation for grievous hurt resulting from a hit-and-run motor accident according to the Motor Vehicles Act, 1988?

A) Rs. 12,500/-

B) Rs. 25,000/-

C) Rs. 50,000/-

D) Rs. 15,000/-

E) Rs. 20,000/-

Q 15. How is the net income of a deceased individual calculated for assessing damages to compensate dependents?

a) It is calculated as the total income of the deceased.

b) It is calculated as the gross income of the deceased minus statutory deductions.

c) It is calculated as the gross income of the deceased minus personal expenses.

d) It is calculated as the gross income of the deceased plus statutory deductions.

e) It is calculated as the net income of the dependents.

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