IC-S-06 and IC 72 Motor Insurance Chapter 1 Introduction to Motor Insurance All MCQ

IC-S-06 and IC 72 Motor Insurance Chapter 1 Introduction to Motor Insurance All MCQ

Test your knowledge of motor insurance with our multiple-choice questions (MCQs). Learn about coverage, claims, policies, and more with engaging quizzes. Perfect for exam prep and insurance professionals!

Introduction to Motor Insurance 

Question 1 

Accident damage was added to the car policy leading to the formation of ___?

1. Liability policy
2. Third-party policy
3. Comprehensive policy
4. Personal policy
5. Motor vehicle policy

 

 

 

Introduction to Motor Insurance 

Question 2 

The car and general insurance Corporation Ltd was established in __ to transact motor insurance followed by other companies.

1. 1894
2. 1895
3. 1899
4. 1903
5. 1904

 

 

 

 

Introduction to Motor Insurance 

Question 3 

The principles of motor insurance contracts are similar to which form of insurance?

1. Property and liability insurance
2. Life and accident insurance
3. Burglary and theft insurance
4. Indemnity and liability insurance
5. None

 

Introduction to Motor Insurance 

Question 4 

Which of the following is not the material fact in motor insurance?

1. The driving history
2. Age of the driver
3. Physical condition of driver
4. Past loss experience
5. Type of vehicle

 

 

 

Introduction to Motor Insurance

Question 5

Which section of the motor vehicle act deals with the utmost good faith principle?

1. Section 150
2. Section 149
3. Section 148 |
4. Section 151
5. Section 147

 

 

 

Introduction to Motor Insurance

Question 6

section__ of the motor vehicle act requires registration in the name of user with owners right endorsed in the registration document.

1. 48
2. 47
3. 51
4. 52
5. 54

 

 

Introduction to Motor insurance

Question 7

IDV the abbreviation tor.

1. Indemnity declared value
2. Insured declared value
3. Immediate declared value
4. Immediate decided value
5. Insured divided value

 

 

 

Introduction to Motor Insurance

Question 8

Which of the following statement is not true with regard to IDV?

1. IDV does not take in consideration market value or depreciated price
2. It is based on the price of new vehicle at the beginning less depreciation at the agreed rates.
3. IDV keeps on fluctuating during the policy period
4. IDV is applied for the TL/CTL/Theft claims
5. All of the above are true

 

 

 

Introduction to Motor Insurance

Question 9

Which of the following statement is correct with regards to insurable interest of partners in a motor vehicle?

1. Partners always have equal insurable interest in the motor vehicle.
2. Partners have insurable interest in the motor vehicle as per the partnership provisions.
3. As per the provisions of the motor vehicle act, the partner with the highest stake in the partnership always has the entire insurable interest in the motor vehicle.
4. As per the provisions of the partnership act partner with the highest stake in the partnership always has the entire insurable interest in the moto.
5. As per the provisions of the third party act the partner with the highest stake in the partnership always has the entire insurable interest in the motor vehicle.

 

 

 Introduction to Motor Insurance

Question 10

A temporary permit is issued to enable the vehicle to go outside:

1. For the purpose of seasonal business
2. To meet a particular temporary needs.
3. For conveyance of passengers on special occasions
4. Both a and b
5. All the above

 

 

 

Introduction to Motor Insurance

Question 11

Dangerous driving and not wearing seat belts or helmets will attract a civil liability up to Rs._____?

1. 2000
2. 2500
3. 3500
4. 5000
5. 10000

 

 

 

Introduction to Motor Insurance

Question 12

What is the age limit for licensing of drivers for geared motorcycle and other vehicles?

1. 16 years
2. 18 years
3. 20 years
4. 24 years
5. 25 years

 

Introduction to Motor Insurance

Question 13

Under which of the following conditions is the license disqualified?

1. If the person is a habitual criminal.
2. Has failed to submit to or has not passed the tests referred in the provisions of section 22
3. Below the age of 18 years
4. Both A and BI
5. All the above

 

 

 

Introduction to Motor Insurance

Question 14

Which of the following documents are required by the claims enquiry officer in respect of claims arising out of hit and run motor accidents?

2. Post-mortem report
3. Certificate of injury
4. Inquest report
5. All the above

 

 

 

 

Introduction to Motor Insurance

Question 15

In case of private cars, driving license of persons above the age of 50 years would be -.

1. Renewed for a lifetime on payment of prescribed fees.
2. Renewed for a year at a time on payment of prescribed fees
3. Renewed for a period of three years at a time on payment of prescribed fees
4. Renewed for a period of five years at a time on payment of prescribed fees
5. None

 

 

Introduction to Motor Insurance

Question 16

The provisions for constitution of Road Safety Council was made under which of the below option‹

1. Act number 59 of 1988|
2. Amendment act 54 of 1994|
3. Amendment act 27 of 20001
4. Amendment act 39 of 2001
5. None

 

 

 

 

Introduction to Motor Insurance

Question 17

Identify which of the below form is used for making application for grant of tourist vehicle?

1. Form PCA
2. Form 45.
3. Form PRE|
4. Form PRA|
5. Form 481

 

 

 

 

Introduction to Motor Insurance

Question 18

The Goods Carrier permits is granted under which section of the motor vehicle act 1988.

1. Section 79
2. Section 66
3. Section 56
4. Section 39
5. Section 38

Introduction to Motor Insurance

Question 19

What should be the maximum age of a particular vehicles for opting national permits

1. 12
2. 18
3. 21
4. 25
5. 30

 

 

 

Introduction to Motor Insurance

Question 20

-__ is an instrument issued by a state or regional transport authority authorizing the use of motor vehicle as a transport vehicle in a provisions of motor –

vehicle act

1. License
2. Registration
3. Third-party insurance
4. Permit
5. Certificate of insurance

 

 

Introduction to Motor Insurance

Question 21

Under which section is the solatium fund used to disperse compensation to the victims of motor accident cases?

1. Section 61
2. *Section 161
3. Section 63
4. Section 163|
5. Section 59

 

 

Introduction to Motor Insurance

Question 21

The Motor Vehicles Act 1988, has replaced the earlier 1039 Act, and it became effective from______.

1. 1st July 1980
2. 1st July 1990
3. 1st July 1989
4. 1st July 1970
5. 1st July 1988

 

 

 

Introduction to Motor Insurance

Question 22

What is the market scenario presently?

12. According to the IRDA, the loss ratio for the industry in 2010-11 was 213% but fell to 145% in 2011-12.
13. Third-party premium rates are fixed by the insurance regulator.
14. *In the medium to long-term, increased automobile sales, higher penetration in the renewal business and the emergence of large organized collaborations such as ‘garage preferred’ provider network, are expected to provide the growth momentum for this segment
15. All of the above.
16. Only A and C.

 

 

 

Introduction to Motor Insurance

Question 23

There is a lack of common policy database, which has the curious situation where __ vehicles are only insured despite mandatory provision and dealers are being made to ensure delivery of the vehicles only after registration with the RTA.

1. 90%.
2. 80%.
3. 70%
4. 60%.
5. 50%

Introduction to Motor Insurance

Question 24

______ is a contract recognized by the law, in which the insurer undertakes to run the risk to a pre-specified extent, subject to terms, conditions and warrantees and pays compensation for an agreed consideration to the insured/ owner of the property on the happening of the event insured against.

1. Reinsurance
2. Insurance
3. Third party insurance.
4. Motor own damage insurance
5. Unique Contract

 

 

 

Introduction to Motor Insurance

Question 25

The ______ imposes a legal obligation on the proposer to disclose all material facts to the insurers, in order that the parties to the contract are places in – the same position or on an equal tooting with reference to their knowledge of the subject matter of insurance.

1. Utmost good faith
2. Trust
3. Humanity
4. Proposal form
5. Written contract

 

 

 

Introduction to Motor Insurance

Question 26

What are the details which must be provided under Uberrimae Fides?

1. Details of previous accidents.
2. Compulsory excess on own damage claims by the previous insurer.
3. Usage of vehicles.
4. Geographical area of use.
5. All of the above.

Introduction to Motor Insurance

Question 27

The buyer of motor vehicle acquires insurable interest_____ the contract sale is completed, though he may not be in possession of the vehicels.

1. After
2. After 1 month of
3. As soon as
4. After 2 months
5. After 3 months

 

 

 

 

Introduction to Motor Insurance

Question 28

What are the legal aspects of the Motor Vehicle Act, 1939?

1. The use, maintenance and operation of motor vehicles.
2. Registration of motor vehicles.
3. Construction equipment and maintenance of motor vehicles
4. *Control of traffic
5. *All of the above

 

 

 

Introduction to Motor Insurance

Question 29

Pick the incorrect committee who was not included in the group who went into the different aspects of road transport recommending updating, simplification –

1. National transport policy committee.
2. National police commission.
3. IRDAI
4. Road safety committee.
5. Low powered two wheelers committee.

 

Introduction to Motor Insurance

Question 30

What are the important provisions of the 1988 Act?

1. Rationalization of certain definitions with addition of certain new definitions of new types or vehicles
2. Stricter procedures for grant of driving licenses and period of their validity.
3. Laying down of standards for the components and parts of motor vehicles.
4. Standards of anti-pollution control devices.
5. All of the above.

 

 

 

Introduction to Motor Insurance

Question 31

A clause is incorporated in the policy to protect the Pledgee’s interest as per __ in consonance with the General Regulations 21, incorporating an insurable Interest to the extent or money so advanced or outstanding.

1. IMT 1
2. IMT 7
3. IMT 6
4. IMT 10
5. IMT 15

 

 

Introduction to Motor Insurance

Question 32

_______ to an intestate person, executor’s administrators, official assignees, official receivers have an insurable interest.

* Users

*Legal hires

*Joint owner

*Third party

*Motor Traders

 

Introduction to Motor Insurance

 Question 33

The________ also provides indemnity for legal costs as awarded.

1. Joint owners policy.
2. *Third party policy.
3. *Legal heirs policy.
4. *User policy.
5. *Motor trader’s policy.

 

 

Introduction to Motor Insurance

Question 34

Action is taken by______ against violation of permit conditions, especially by stage carriage buses u/s 86 of MV act 1988 for suspension/cancellation

1. Police
2. State transport authority
3. Central Authority
4. Any Transport Authority
5. Traffic police

 

 

 

Introduction to Motor Insurance

Question 35

What are the different vehicles where permits for passenger vehicles are issued?

1. Auto Rickshaw and taxi permits
2. Maxi Cabs
3. Phat Phat Seva
4. Eco-Friendly Seva
5. All of the above

 

 

Introduction to Motor Insurance

Question 36

Which is the most common type of permit used for hire and reward purposes

1. Permit for passenger vehicles.
2. Contract carriage buses permits.
3. Stage carriage permits
4. Temporary permits.
5. Rent-a-cab Permits.

 

 

 

Introduction to Motor Insurance

Question 37

______ are issued under section /2 of Motor Vehicles Act, 1988, depending upon the requirement of buses on the different route of the city.

1. Permit for passenger vehicles
2. Contract carriage buses permits
3. Stage carriage permits
4. Temporary permits
5. Rent-a-cab Permits

 

 

 

 

Introduction to Motor Insurance

Question 38

______Or the Act 1980 states that if the fitness of the vehicle had expired before the date of accident. the vehicle shall not be deemed to be demand to be registered under section 39 of 1988 Act.

1. Section 50
2. Section 54
3. Section 56
4. Section 58
5. Section 60

 

Introduction to Motor Insurance

Question 39

The TAC has clarified that during the ___ period, it can be construed as grace period and insurers can consider OD claims, even if the contract of insurance was not transferred as on date of accident.

1. 10 days
2. 9 days
3. 11 days
4. 13 days
5. 14 days

 

 

 

Introduction to Motor Insurance

Question 40

Permit is an instrument issued by a state or regional transport authority authorizing the use of a motor vehicle as a transport vehicle in specific manner as per the relevant provision of motor vehicles act and rules framed there under.

1. The statement is true.
2. The statement is false.
3. The statement is partially true.
4. The statement is partially false
5. The statement is irrelevant.

 

 

 

Introduction to Motor Insurance

Question 41

Pick the odd one for drunken-driving:

500. Speed of the vehicles: 20% more than speed limit, penalty is Rs 500.
501. Quantity of Alcohol in the body: 30-60 mg per 100 ml of blood, penalty is Rs 2000.
502. Speed of the vehicles: 50% more than speed limit, penalty is Rs 1000.
503. Quantity of Alcohol in the body: 60-150 mg per 100 ml of blood, penalty is Rs 4000 and/ or imprisonment.
504. Speed of the vehicles: 100% more than speed limit and beyond, penalty is Rs 5000.

 

Introduction to Motor Insurance

Question 42

What are the different practices of other countries with regard to imposing liability for exceeding weight limit?

1. UK: A person who fails to comply with regulations regarding size and weight is held guilty
2. US: Several states make the driver and / or the owner liable for the vehicles exceeding the weight-limit.
3. New Zealand: Hold a person operating a motor vehicles or a combination of vehicles guilty for exceeding weight limits.
4. Canada: Both the driver and the owner of the vehicle shall be held liable.
5. All of the above.

 

 

Introduction to Motor Insurance

Question 43

The Motor Vehicles (Amendment) Bill, 2008 seeks to amend the principal act by:

1. Enhancing fines.
2. Devolving greater powers to state governments to regulate road transport.
3. Streamlining provisions dealing with the payment of compensation to road accident victims.
4. Prescribing a time bound process for disposal of appeals.
5. All of the above.

 

 

 

Introduction to Motor Insurance

Question 44

Without establishing the fault of the driver (NFL) fixed compensation is provided at

1. Rs 25,000, Rs 12,500
2. Rs 20,000, Rs 12,000
3. Rs 20500 Be 11 000
4. Rs 15 500 Rs 11500
5. Rs 60.000. Rs 12.500

 

Introduction to Motor Insurance

Question 45

What are the key issues and analysis of the Motor Vehicles (Amendment) Bill, 2008?

1. Suspension of license for drunken driving
2. Compensation for motor accidents.
3. Provisions related to rash and negligent driving
4. Consignor liability for exceeding weight limits.

 

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