IC-S-06 and IC 72 Motor Insurance Chapter 2 Marketing in Motor Insurance MCQ

IC-S-06 and IC 72 Motor Insurance Chapter 2 Marketing in Motor Insurance 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

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 1

The GIC re as admin shall be paid a fee of _____of the total premium on motor third party insurance business in respect of the business undertaken for the pooled account

2. 50%
3. 5%
4. 50%
5. 10%
6. 12%

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 2

The Knock for knock agreement benefits which of the following?

1. Taxis
2. Buses
4. Goods vehicles I
5. None

 

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 3

The maximum liability of the insurer in an own damage cover is determined by IDV where IDV refers to:

1. Insurer declared value
2. Ensure declined value
3. Insured declared value
4. Insured declined value
5. Insurer declined value

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 4

Which of the following is not true with regard to International driving permit?

1. IDP is used because the driving license requirements vary worldwide.
2. The application for IDP can be made up to 3 months in advance
3. The validity of International driving permit is for one year
4. IDP can be issued to nonresidents as well
5. All are true.

 

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 5

Who all can import sports utility vehicles at 3% concession rate of duty.

1. Travel agents
2. Tour operators
3. Golf resorts
4. Hotels
5. All the above

 

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 6

The existence of the tariffs in ___muted competition to some extent.

1. Fire
2. Motor engineering.
3. Workmen’s compensation
4. All the above
5. None

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 7

The insured can renew his policy online starting____ before expiry of your existing policy.

1. 60 days.
2. 45 days.
3. 30 days|
4. 15 days|
5. Immediately

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 8

The GIC re as administrator shall be paid a fee of ___of the total premium on motor third-party insurance business in respect of the business underrated for the pool account.

2. 50%
3. 5%|
4. 750%.
5. 10%
6. 12%

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 9

Every Insure registered to carry on ______ shall automatically participate in the pooling arrangement to the extent set out herein.

 

1. General insurance business
2. General reinsurance business
3. Life insurance business
4. All of the above
5. Either A or B

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 10

Every ——-_— OT every Insurer that is authorized to underwrite motor Insurance business tor the Insurers shall also be authorized to underwrite motor third party insurance business that will be shared among all insurers through the pooling arrangement.

1. Office
2. Underwriting office
3. Concerned office
4. Allotted office
5. Registered office

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 11

The pooling of business among all insurers will be achieved through a bilateral insurance arrangement between the underwriting insurers and all the other registered and non-registered insurers carrying on general insurance business.

1. The statement is correct.
2. The statement is incorrect.
3. The statement is partially correct.
4. The statement is partially incorrect.
5. The question is irrelevant.

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 12

For the purpose of third-party death or injury or physical damage the General Insurance Council of India shall adopt a standardized stepwise claim settlement policy.

1. The statement is correct.
2. The statement is incorrect.
3. The statement is partially correct.
4. The statement is partially incorrect.
5. The statement is irrelevant.

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 13

The insurers and GIC Re shall enter into a ______ reinsurance arrangement to give effect to tour the pooling scheme.

1. Unilateral
2. Bilateral
3. Multilateral
4. Either A or B depending on circumstances
5. Either A or B or C depending on circumstances

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 14

What are the benefits of online motor insurance?

1. No paperwork is involved.
2. Multiple payment options available.
3. Policy can be renewed easily before the expiry of the renewal date.
4. Physical inspection of the motor vehicle is done by the surveyors.
5. All the above

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 15

Take the odd one out with respect to the role or dealers in auto insurance.

1. The dealer is required to arrange for mandatory registration of the vehicle as per the law.
2. The dealers apart from selling new vehicles also provide servicing and maintenance of used cars.
3. The dealers tie up with the particular insurance company in order to provide car insurance.
4. The dealers at time act as corporate agents distributing the insurance products.
5. The dealer has an important role to play in the marketing of the motor insurance.

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 16

those who use the car more are likely to pay a ____ premium because they are more exposed to the risk or accidents

1. Lower
2. Higher
3. Proportional I
4. Non-proportional
5. Variable

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 17

The policy of______ applies to all commercial vehicles for standalone third-party insurance (act only insurance).

1. Risk Insurance Pool.
2. Insurance Pool
3. Knock for knock
4. Reinsurance Pool
5. Declined Risk Insurance Pool.

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 18

The new plan provides an option to insurance companies to choose the liabilities they would be totally, meaning they would pay up ______ of the claims.

1. 50%
2. 60%
3. 80%
4. 90%
5. 100%

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 19

Due to the high claims ratio of around ———- from commercial vehicles, insurance companies are providing them cover from a common declined pool and not from their own books.

1. 70%
2. 90%
3. 100%
4. 170%
5. 140%

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 20

The size of the declined pool, at _____ IS small which means that more insurance companies are underwriting risk on their own books moving away from a one-size-fits-all premium for vehicles.

1. 100 crores
2. 400 crores
3. 500 crores
4. 700 crores
5. 900 crores

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 21

If two vehicles are involved in collision and one of the vehicles is negligent, the owner of the other vehicles cannot recover damages from the negligent owner of the vehicles.

1. The statement is correct.
2. The statement is incorrect.
3. The statement is partially correct.
4. The statement is partially incorrect.
5. The statement is irrelevant.

 

C72 CHAPTER 2 Marketing in Motor Insurance

Question 22

What you mean by knock for knock agreement?

1. Irrespective of who was negligent, the insurers covering the damage will not exercise subrogation rights against the party involved in the accident.
2. The other insurers will indemnify their insured, provided the damage is covered under the policy.
3. The insurers could choose to pay up claims in cities where accidents may be less frequent, while transferring to pool those coming from hinterland, where there are more accidents.
4. All of the above are correct.
5. Only A and B defines the agreement.

IC72 CHAPTER 2 Marketing in Motor Insurance

Question

What are the bennet’s of knock for knock agreements?

1. The insurers as they avoid intercompany litigation and thereby save costs.
2. It benefits the insured’s because they recover the claims straight away from their insurers.
3. It also benefits the insuring public because the reduction in the cost claims is eventually reflected in reduced premiums.
4. All of the above.
5. None of the above

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 24

The dictionary defines the term _____ as an agreement between auto insurers that in the event of an accident each insurance company will pay for the –

damage to the vehicle insured with it, without attempting to establish blame for the accident.

1. Own damage
2. Knock for knock Not attempted
3. Third-party cover
4. Decline risk pool
5. IDP

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 25

The______ Will also ensure smooth functioning and timely settlement or clams

1. IRDA
2. General Insurance Council
3. General Insurance Corporation
4. Reinsurance Commission
5. None of the above.

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 26

The timeline between claims reported and settled in the case of Third Party Liability averages_____ a correct picture on the functioning and success of the pool cannot be ascertained at the present time.

1. 5 to 7 years
2. 5 to 7 months
3. 10 years
4. 3 to 5 years
5. 7 to 8 months

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 27

since the Motor third-party business is expected to run on a normal print less loss basis, there shall be no ceding commission in respect or the business ceded to the pool with effect from 1/4/2010.

1. The statement is correct
2. The statement is incorrect.
3. The statement is partially correct.
4. The statement is partially incorrect.
5. The statement is irrelevant.

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 28

On Motor vehicles, a person staying in a foreign country for at least two years are allowed to bring personal and household goods under depreciation slabs of –

_____for the first year_____ for the second year and so on.

1. 12%, 10%
2. 16%, 12%.
3. 18%, 16%
4. 18%, 14%
5. 20%, 16%

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 29

Pick the odd one for motor insurance online:

1. The insured gets an instant policy, as there is no documentation or paperwork involved.
2. One has the advantage of choosing from multiple payment options like credit card, net banking, Debit card etc.
3. Public and private vehicles both can be insured online.
4. Two wheelers can also be insured online.
5. All of the above are true.

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 30

What are the IDP requirements?

1. Valid driving license held by the applicant and copies thereon.
2. Copies of passport, visa, where applicable, and a ticket verification.
3. Attested copy of valid address proof.
4. Five Passport size photographs.
5. All of the above.

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 31

Overtime one drives outside his nation. he should carry with himself.

1. National driver’s license
2. International translation of driver’s license.
3. Valid ID card.
4. All of the above.
5. Only A and B.

 

 

 

IC72 CHAPTER 2 Marketing in Motor Insurance

Question 32

The authorization of the International driving documents has its basis in International Conversations on Road Safety in the year:

1. 1923
2. 1943
3. 1949
4. 1968
5. All the above.

 

For Chapter 1 Motor Insurance MCQ Please visit this Post