IC72 - Motor Insurance Exam -8

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Q 1. What is the impact of a disproportionately higher average run on a vehicle's insurance premium?

a) It leads to lower premiums

b) It signifies greater wear and tear, potentially resulting in higher damages in the event of a claim

c) It has no impact on the premium

d) It results in higher premiums

e) It affects the color of the vehicle

Q 2. When does contributory negligence occur in a motor vehicle accident claim?

A) When the injured party has contributed to the occurrence of the accident.

B) When there is an element of emergency involved.

C) When the victim is a fare-paying passenger.

D) When an act of God is involved.

E) When the accident involves composite negligence.

Q 3. According to the legal perspective, what can be deducted from the salary of a deceased person while determining monthly income for computing dependency compensation?

a) All contributions made by the deceased person during their lifetime.

b) Only statutory deductions such as Income Tax and Professional Tax.

c) The entire pay packet without any deductions.

d) All perks and allowances received by the deceased.

e) The entire salary without any deductions.

Q 4. What is the role of manufacturers in determining insurance premiums in the USA?

a) Manufacturers set insurance premiums for all vehicles.

b) Manufacturers disclose crash test results and repair information.

c) Manufacturers provide insurance coverage for their vehicles.

d) Manufacturers determine the minimum age for drivers.

e) Manufacturers establish the maximum speed limits for vehicles.

Q 5. Which factor related to the use of the vehicle is crucial in determining the relative degree of risk involved?

a) Color of the vehicle

b) Purpose for which the vehicle is used

c) Training and education of drivers

d) Presence of luxury fittings

e) Availability of spare parts

Q 6. What is composite negligence?

a) Negligence resulting from a single person's actions

b) Negligence involving two vehicles

c) Negligence of a company

d) Negligence without any duty to take care

e) Negligence leading to criminal charges

Q 7. In the context of calculating just compensation for dependents, what should be considered when determining the monthly income of the deceased?

a) All contributions made by the employer for the benefit of the deceased.

b) Deductions for the statutory amount of tax payable.

c) Deductions for all perks and allowances received by the deceased.

d) The dependents' total income.

e) The overall pay packet without any deductions.

Q 8. What is the purpose of Preferred Garages in motor insurance?

a) To provide free vehicle inspections

b) To offer discounts on insurance premiums

c) To extend cashless repair facilities

d) To sell used cars to policyholders

e) To conduct crash tests on vehicles

Q 9. Why are private cars considered a lighter risk compared to taxis in motor insurance underwriting?

a) Private cars are typically driven by younger drivers

b) Private cars have better safety features

c) Private cars are usually driven by the owner, leading to better maintenance

d) Taxies are more likely to be parked in risky areas

e) Taxies are less prone to accidents

Q 10. How is liability apportioned in cases of composite negligence based on the type of vehicle?

a) 50% on each vehicle

b) 60% on the heavier vehicle, 40% on the medium transport vehicle

c) 70% on the heavier vehicle, 30% on the lighter vehicle

d) 80% on the heavier vehicle, 20% on the lighter vehicle

e) No apportionment is made

Q 11. Why is it important to consider the entire pay packet when determining compensation for the dependents of a deceased individual?

a) To calculate the exact amount of taxes owed.

b) To determine the deceased's total earnings throughout their life.

c) To assess the overall loss suffered by the dependents.

d) To estimate the future income of the dependents.

e) To identify any unauthorized payments made to the deceased.

Q 12. What does the "Drive Less Pay Less" concept in motor insurance primarily consider?

a) The vehicle's make and model

b) The driver's age and experience

c) The number of passengers in the vehicle

d) The number of kilometers driven

e) The color of the vehicle

Q 13. Why are public carriers considered to be a higher risk compared to private carriers in motor insurance underwriting?

a) Public carriers are typically driven by experienced drivers

b) Public carriers are limited to carriage of their goods

c) Public carriers are subject to optimum utilization, including night driving

d) Private carriers are used for delivery within a city

e) Public carriers have better safety features

Q 14. When can a claimant execute the entire award against one of the tortfeasors in cases of composite negligence?

a) When the claimant lodges the claim against only one of the tortfeasors

b) When both tortfeasors are equally at fault

c) When the claimant lodges the claim against both tortfeasors

d) When the apportionment of liability is 50:50

e) When the insurer gives no evidence

Q 15. What is the primary purpose of considering the contributions made by the employer to the deceased's benefits when calculating monthly income?

a) To reduce the amount of compensation payable to the dependents.

b) To calculate the exact amount of tax owed.

c) To determine the deceased's net income.

d) To assess the overall loss suffered by the dependents.

e) To determine the statutory deductions applicable to the deceased.


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