IC72 - Motor Insurance Exam -9

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Q 1. What are the grounds on which an insurer can contest proceedings before the Claims Tribunal according to Section 149(2) of the 1988 Act?

A) Breach of specified policy conditions

B) Non-disclosure of a material fact

C) Collusion between the petitioner and insured

D) Failure of the insured to contest the claim

E) All of the above

Q 2. In the case of fraud being detected after the award, what action is recommended?

a) Submitting it with proper prayer by way of a specific petition for consideration as additional evidence

b) Initiating criminal action against the insured

c) Ignoring the fraud and proceeding with the award

d) Reporting it to the police authority

e) None of the above

Q 3. What is the primary purpose of the Declined Risk Pool in motor insurance?

a) To encourage insurers to cover high-risk vehicles

b) To centralize the underwriting of all vehicle insurance

c) To provide an option for insurers to choose which liabilities they bear

d) To eliminate the need for vehicle inspections

e) To determine premium rates for vehicle insurance

Q 4. What is the purpose of NCD (No Claim Discount) in motor insurance premium calculations?

a) To increase premiums for experienced drivers

b) To reduce premiums for drivers with a history of safe driving

c) To determine the vehicle's make and model

d) To calculate repair schedule data

e) To evaluate the geographical area

Q 5. Why were Claims Tribunals introduced under Section 110 of the Motor Vehicles Act?

a) To speed up the criminal justice process

b) To reduce the burden of pending cases in civil courts

c) To handle only property damage claims

d) To increase the cost of filing a claim

e) To provide free legal services to claimants

Q 6. What multiplier was adopted by the court for the compensation of a 27-year-old housewife leaving behind her husband and two minor children?

a) 10

b) 15

c) 20

d) 25

e) 30

Q 7. Why do insurers enter into Knock for Knock Agreements?

a) To increase litigation between insurers

b) To determine fault in accidents

c) To avoid unnecessary delays and costs in claims settlement

d) To reduce the number of vehicles on the road

e) To encourage premium payments

Q 8. Which of the following is NOT considered a vehicle-related factor when assessing motor insurance premiums?

a) Vehicle age

b) Make and model

c) Color of the vehicle

d) Crash test compliance

e) Spare parts availability

Q 9. What is the jurisdiction of Motor Accident Claims Tribunals (MACT) under Section 165 of the Motor Vehicles Act?

a) Exclusive jurisdiction for claims involving death

b) Jurisdiction over property damage claims only

c) Jurisdiction to decide claims irrespective of fault basis

d) Limited to cases with compensation up to Rs. 6,000/-

e) Jurisdiction limited to accidents in public places

Q 10. According to the Supreme Court, how should compensation for disability of children injured in road accidents be calculated?

a) It should be based on the actual income of the child.

b) It should be a fixed amount ranging from Rs. 3 lakh to Rs. 6 lakh depending on the degree of disability.

c) It should be determined by the parent's income.

d) It should be calculated using a specific formula outlined in the Motor Vehicles Act.

e) It should be based on the child's future earning potential.

Q 11. What is the main benefit of the Knock for Knock Agreement for insured individuals?

a) Reduced premium rates

b) Quick recovery of claims from their insurers

c) Protection against accidents

d) Guaranteed no-claim bonus

e) Unlimited liability in case of bodily injury

Q 12. What is differential rating in motor insurance premium calculations?

a) Rating based on engine capacity

b) Rating based on claims history

c) Rating based on scientific risk management

d) Rating based on make and model

e) Rating based on gender

Q 13. Under what circumstances can a claim petition be filed in a Motor Accidents Claims Tribunal (MACT)?

a) Only if the claimant resides within the jurisdiction of MACT

b) If the accident occurred within the jurisdiction of MACT

c) If the defaulter resides within the jurisdiction of MACT

d) If the policy issuing office is situated within the jurisdiction of MACT

e) All of the above

Q 14. How does the Supreme Court suggest compensating children injured in accidents, given that they have no income?

a) By providing them with a notional income of Rs. 15,000 per year.

b) By structuring the compensation according to the Second Schedule to the Motor Vehicles Act.

c) By awarding non-pecuniary damages in addition to actual expenses for treatment and care.

d) By considering the income of the parents.

e) By awarding a lump sum amount based on the child's age.

Q 15. Why is the International Translation of a Driver's License not valid on its own for driving in the United States?

a) It lacks important information about the driver's history.

b) It does not provide proof of residency in the U.S.

c) It is not recognized by U.S. traffic authorities.

d) It must be accompanied by a national driver's license.

e) It is only applicable to certain vehicle types.



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