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Questions

1. Certificate of Insurance is a document evidencing that a Motor vehicle is insured against

T.P. Liability as required under the MV Act. All certificates must carry certain common
information as appended below. But two of them are different in different types of vehicles
(not mere numerical difference). Identify the two items.
a) Description of the insured vehicle
b) Persons or classes of persons entitled to drive
c) Period of Insurance (Commencement and expiry separately)
d) Details of the Insured
e) Limitations as to use
f) Certificate Number

(I) (a) & (b) (II) (a) & (f) (III) (c) & (d) (IV) (b) & (e)

2. The duration of the prescribed course on transportation of Hazardous goods and driving
skills from any recognized Institution necessary for a driver of such goods carrying vehicle
is:

a) One week
b) 2 weeks
c) 5 days
d) 3 days.

3. Transfer of Certificate of Insurance subsequent to the sale of vehicle in favour of the new
owner should be made –

a) Within 10 days of sale

b) Within 12 days of sale
c) Within 14 days of sale
d) Within 15 days of sale

4. Subsequent to the sale of an old vehicle, the existing NCB can be availed by the Insured- seller
within -
a) one year b) Two years c) Three years d) Six months

5. For Act only policies, the premium for the laid-up period is calculated on :

a) Short period Credit refund

b) Pro-rata Credit refund
c) Short period Cash Refund
d) Pro-rata Cash refund

6. For Members of any recognized Automobile associations in India, a discount on premium

is allowed in respect of:
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a) On the OD premium of any Package policy

b) 5% of the OD premium of Private cars/ 2-wheelers
c) TP premium of any class of vehicles
d) Entire premium of Private Cars/ 2-wheelers

7. Option for deletion of the following perils are available at the inception of policy period for
a package policy to avail discount in premium:

a) Earthquake
b) Terrorism
c) Riot Strike Malicious Damage
d) None of the above

8. A commercial Vehicle ‘A’ having a package policy was towing a disabled mechanically
propelled vehicle ‘B’. While towing, the towed Vehicle ‘B’ hits a person on the road giving
rise to a Third Party Personal Injury claim. Which policy will be liable to settle the claim?

a) The policy of Vehicle B will compensate

b) Third Party Liability section of Vehicle A policy would be extended to compensate the
liability
c) Both the policies will contribute to pay the claim
d) The claim will not be paid by any of the policies

9. ‘Res Ipsa Loquitur’ means

a) A person voluntarily consents to run the risk

b) Accident which occurs not withstanding ordinary care
c) Things speak for itself
d) An agony of the moment

10. Trade certificates are used in case of:

a) New registered Vehicle

b) New Unregistered Vehicle
c) Second hand Vehicle
d) None of the above

11. A 2 classification of Commercial Vehicles denotes to:

a) Trailers
b) Passenger carrying Vehicles
c) Private carrier goods carrying vehicles
d) none of the above
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12. Choose the correct combination. Which of the following covers are available under Section
1 of a motor vehicle policy?
i) Fire, Explosion
ii) Earthquake
iii) Terrorist activity
iv) Landslide, Rock slide

a) only i ,ii, & iii

b) only i ,ii, & iv
c) all the above
d) only i & iv

13. A maxi Cab is a

a) Stage carrier
b) Contract carriage
c) Light Motor vehicle
d) Private service vehicle

14. Vintage car denotes to vehicles to vehicles manufactured

a) before 1939
b) after 1940
c) before 1940
d) after 1970

15. Named driver plates are used for

a) Unregistered vehicle
b) New showroom vehicles
c) Second hand registered vehicle
d) None of the above

16. Mr. Ved Prakash sells his private car and buys a new Taxi Cab. He was enjoying 65%
bonus as per sun set clause. The insured asks for the same NCD on the new Taxi Cab. As an
underwriter, what will you do?

a) Allow the same bonus on the substituted Taxi Cab

b) You would allow 50% NCD i.e. maximum available for Taxi Cab
c) You would not allow any NCD
d) You would allow first slab of NCD for Taxi Cab

17. The steering rod of a car broke while it was running which results into an accident and
causes damage to the car.
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a) The insured will not get a claim since it is consequent upon a mechanical breakdown and
consequential losses are excluded from the policy
b) The claim will be paid for the damage to the car along with the cost of steering rod since
breakage of steering rod is also an accident
c) Claim is payable for the damages but no compensation will be made for the steering rod
d) None of the above

18. Motor cover note is generally issued for

a) In all cases c) For new vehicles
b) For renewal only d) Only for third party & theft

19. The maximum validity period of a motor cover note is

a) 15 days c) 60 days
b) 30 days d) 365 days

20. Under what circumstances the concept of total loss settlement is considered

a) Repairing cost exceeds more than 75% of IDV

b) Insured’s refuses to get it repaired
c) Repairing cost exceeds more than 50%
d) None

21. What is the maximum NCB allowed under Motor OD Premium

a) 30% c) 45%
b) 50% d) 65%

22. Mr. A who was enjoying 50% NCB sold his vehicle to B. What % of NCB would be
transferred to `B’.
a) 50% c) 15%
b) 25% d) Nil

23. IDV of a vehicle is 2.5 lakhs, assessed loss is 2.05 lakhs. What would be insurers
liability

a) Rs. 2.50 lakhs c)Rs. 2.05 lakhs

b) Rs. 2.05 lakhs less excess d)Rs.2.50 lakhs less excess

24. Which of the following is not relevant in Motor Vehicle Insurance.

a. Sec 146 of the Motor Vehicle Act 1988

b. WC cover for operation & Maintenance of Vehicle
c. IDV
d. Reinstatement
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25. The categorization of surveyor is done by

a. Head office of the company c. IRDA
b. GIPSA d. Institute of Surveyors

26. Which one of the following is relevant for calculating repair liability under
Motor OD

a. New for old c. Survey fees

b. Depreciation d. Garage Rent

27. The Cover note issued for a motor vehicle does not contain __________
a. Name of insurer c. Name of the driver
b. Engine/Chassis/Registration No. d. Validity Period

28. Which is not a factor for rating a two wheeler policy

a. Side Car c. Make
b. Age d. Membership Automobile Association

29. Geographical extension is not allowed to one of the countries

a. Nepal c Afghanistan
b. Bhutan d. Maldives

30. Motor Trade - Road Risk Policy can be given to

a. Motor Dealers c. Financial Institutions
b. Motor vehicle financiers d. Motor vehicle garage owners

31. At the time of renewal of motor insurance, where there is a break in insurance:

(a) pre-inspection is not necessary

(b) pre-inspection but without traces of engine No. / Chassis No., meter reading is
sufficient
(c) Pre-inspection by an officer of the company recording Engine / Chassis No.,
meter reading – colour of the vehicle is a must
(d) Instead of pre-inspection, providing insurance cover after two days of
acceptance of premium is in order.

32. In case of sale of motor vehicle:

(a) Transfer of motor insurance policy is automatic to the purchaser

(b) Transfer of name in the motor policy can be effected at the time of next renewal
(c) Transfer of insurance policy to the purchaser can be effected any time between
name transfer in the RC to the expiry date of the policy
(d) Name transfer in the policy to the purchase has to be got effected by the
purchaser within 14 days from the date of name transfer in the RC.
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33. Cash loss settlement can be done when:

(a) Total loss is not possible

(b) Salvage cannot be evaluated
(c) When the vehicle / claimant owner had died in the accident
(d) Repairing of vehicle is not possible due to any sound reason from the vehicle
owner

34. IDV principle brought peace in motor claim settlement because:

(a) It restricts maximum liability

(b) It guides total loss settlement
(c) It reduces disputes over total loss valuation
(d) Both (b) and (c)

35. Motor claim management can be improved ensuring:

(a) Issuing of loss control circulars

(b) Monitoring of performance appraisal of motor surveyors
(c) Salvage disposal in time
(d) Both (b) and (c)

36. Agreed value policy in Motor Insurance can be issued for : -

a Classic cases c Vintage cars
b Commercial vehicle d Private cars

37. Which of the following statements are true for NCB

a Policy is renewed after 12 months of expiry
b NCB earned outside India
c The vehicle gets transferred or surrendered
d None of the above

38. Which of the following does not have policy excess

a Two wheeler c Private car vehicle
b Commercial vehicle d None of the above

39. ‘Classic Cars’ mean

a. Car manufactured prior to 31.12.1940
b. Car manufactured after 31.12.1940 and before 31.12.1970
c. Cars that have been imported
d. None of the above

40. The discount in premium for installation of Anti-theft devices in a car is :-

a. 2.5% on OD premium c. 2.5% on both OD and TP premium
b. 5% on OD premium d. 5% on both OD and TP premium
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41. The cover under a motor package policy is operative whilst a vehicle is in a garage ,
parked off the road , in transit and whilst towing a disabled vehicle in case of
a. Private cars c. Commercial vehicles
b. Motorised two wheelers d. Laid up vehicles

42. Time limit for filing appeal against an award of the National Consumer Disputes
Redressal Commission to the Supreme Court is
a. 30 days c. 90 days
b. 60 days d. No time limit.

43. IDV of obsolete vehicle is to be fixed by -

a. Insured & Insurer c. Insurer on the advice of a valuer
b. Surveyor appointed for the purpose d. DP of the Insurer

44. Motor Trade Road Risk Policy can be underwritten on the basis of
a. Type of vehicle c. Dealership
c. Trade certificate d. Vehicle in transit

45. Which document is not required for OD claim processing?

a. Registration book of vehicle c. Assessed loss statement
b. Driving License of driver while accident d. Driving License of the Insured

46. Which of the following does not attract additional premium under motor package
policy
a. PA cover for owner – driver c. Electrical Accessories
b. Use of CNG fuel d. Fibre Glass tank

47. ‘Sunset clause’ relates to:

(a) Vintage vehicles c. No claim bonus
(b) Constructive total loss d. Expiry of the policy

48. Insurance Agency Commission is not allowed under:

(a) Commercial vehicles c. All third party insurances
(b) Two-wheelers d. Only third Party private car
insurance

49. A vehicle in use cannot be insured under:

(a) Vehicle insurance policy
(b) Contractual plant and machinery insurance
(c) Fire Insurance
(d) Carriers liability insurance

50. A vehicle under motor insurance is not covered while vehicle is being shifted:
(a) By lift
(b) In another vehicle
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(c) On its own power

(d) Being towed after accident

51. Motor OD claims cannot be settled on what basis:

(a) Repair basis b. Total loss basis
(b) Cash loss basis d. Replacement cost basis

52. A vintage car has to be certified by whom before insuring as vintage car:
(a) Automobile Association of India
(b) Vintage & Classic Car Club of India
(c) Vintage Car Association of India
(d) Surface Transport Ministry of India

53. The Insurer can cancel the policy by sending notice of

a. 10 days c. 15 days
b. 7 days d. 30 days

54. The insured may authorize repairs necessitated by damage caused under policy
provided estimated cost of such repairs does not exceed :
a. Rs.1000/- c. Rs.500/-
b. Rs.250/- d. Rs.1200/-

55. Which of the following is incorrect?

a. Insurance of a Motor Vehicle is compulsory
b. Policy can be insured forThird Party Liability cover only
c. Proposal Form is a part of the policy
d. Wear and tear is covered by a motor policy

56. Which of the following doesn’t have a bearing while accepting a motor proposal?
a. Moral hazard of the insured
b. Roadworthiness of the vehicle
c. Educational qualification of the proposer.
d. Anti theft devices fitted into the vehicle.

57. Owner of goods traveling along in a goods vehicle will be treated for the purpose of
claims as :
a. Insured c. Third Party
b. Gratuitous Passenger d. Employee

58. Refund of premium on account of double insurance of motor vehicles can be

allowed on pro-rata basis only for the period during which
a. The policy proposed for cancellation is in force
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b. The policy not proposed for cancellation is in force

c. Both the policies are in force on the date of cancellation
d. Both the policies are concurrently in force

TP

1. Jald Rahat Yojna scheme was introduced by GIC in March, 1992 for quick payment of compensation
to victims of Road Accidents. Which one of the following statements is untrue about the scheme?

a) Both Lok Adalat / Lok Nyalaya schemes and Jald Rahat Yojna are identical schemes in respect of
settlement of pending Motor Accident Claims, only the Forum being different.
b) Jald Rahat Yojna offers a just and fair assessment of claims by independent panels of retired judges,
medical practitioners and retired insurance executives.
c) It covers both “fault” and “no-fault” liability claims. “Hit & Run” cases are not covered under this
scheme.
d) Payment will be made in full and final settlement of claims.

2. Which of the following documents is not required to be submitted in support of a Claim before the
Jald Rahat Yojna panel?

a) Copy of the FIR lodged with the police

b) Medical Certificates in support of the claim with Medical bills & Hospital records
c) Passport size photograph of victim
d) Copy of mutual consent letters to settle the claim before JRY panel.

3. “No Fault Liability” under Sec 140 of the MV Act connotes ‘ No fault’ on the part of:

a) The Insurer
b) The Insured
c) The Petitioner
d) The Dependents

4. In which case, the Insurer’s right to appeal for quantum is not available :

a) The award amount is less than 5000/-.

b) The award amount is less than 10000/-
c) The award amount is less than 12,000/-
d) The award amount is less than 15,000/-

5. The term “Third party” stands for :

a) Insured
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b) Insurer
c) Any other person other than a & b
d) None of the above

6. Which document is not required in settling motor TP injury claim?

a) Policy copy
b) Coroner’s Report
c) Road Challan
d) Driving License

7. Maximum liability under TPPD without payment of additional premium under two
wheeler policy is :

a) Rs. 2000/-
b) Rs. 3000/-
c) Rs. 6000/-
d) Rs. 100000/-

8. Under hit and run case what amount is payable in case of death?

a) Rs. 20,000/-
b) Rs. 30,000/-
c) Rs. 25,000/-
d) Rs. 40,000/-

9. Which of the following is not relevant for determination of T/P compensation under motor policy
a. Age c. Gender
b. Income d. Dependency

10. Which of the following is relevant for hit and run cases:

a. Prime Ministers relief fund c. Solatium fund

b. Environment relief fund d. Public Provident fund

11. In case of Motor accident involving TP / injury as well as own damage:

(a) FIR is a must

(b) Only police certificate is sufficient
(c) Intimation to the insurer alone is sufficient
(d) AIR report is sufficient

12. Which type of cases are placed before Lok Adalat ?

a) Hit and seen cases

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b) Workmen’s compensation cases

c) Consumer forum cases
d) Cases pending before Motor Accident Claims Tribunal

13. A motor Accident claim victim can file a case in MACT for compensation:

a At the place of Accident c At the place of issuance of policy

b At the place where he resides d All of the above

14. Which subsidiary is authorised to pay the claims under the Solatium Scheme?

a. Oriental c. New India Assurance

b. National d. United India

15. Which is not a factor for structured compensation under Motor Third Party liability:

(a) Age of the deceased c. Income of the deceased

(b) Dependency of the complainant d. Income of the insured

16. For claiming structural compensation under Section 163A of the MV Act a petitioner need
not prove:

(a) Validity of the DL c. Coverage of Insurance

(b) Negligence of the driver d. Limitation as to use

17. In respect of TP Claims, the insurance company can repudiate its liability to pay the
claim:

a. Only if it proves that the DL was not valid and the driver was dis-qualified from
having a license on the date of accident.
b. If the driver was in possession of the Learning License
c. If the D.L. had expired
d. None of the above.

18. A third party liability is often awarded against more than one insurer in case of:
a. Dispute on admissibility of claim
b. Absence of insurance policies
c. Unenforceable policies produced
d. Contributory negligence

19. ‘Hit and Run’ case means

a) The driver of the vehicle hit a person unknowingly while driving

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b) The driver of the vehicle hit a person willfully while driving and escapes
c) An accident arising out of the use of a motor vehicles the identity whereof
cannot be ascertained
d) A motor sports event which is not covered by Motor Insurance

20. Under the Motor Vehicles Act, ‘a public place’ is to be reckoned as -

a. A place owned by a public limited company

b. A place where public meetings are held
c. A place where any member of public has a general right of access
d. A place where the public grievances are heard

21. No fault liability means

a. Liability without probing negligence

b. Liability without limit
c. Liability without accident
d. None of the above

22. Section 161(3) of MV Act pertains to

a. Structured compensation
b. No fault liability
c. Hit and run compensation
d. None of the above

23. A MACT awards 40000/- for a petitioner for simple injuries. Insurance Company wants to
go on appeal to High Court. The minimum deposit under Sec 173 is to be made at the MACT
for appealing in this case is

a. Rs 10000/-
b. Rs. 25000/-
c. Rs. 20000/-
d. Rs. 40000/-

24. Insurers’ defence available under following sections under MV Act

a. Sec 140 and 147

b. Sec 149 (2) and 170
c. Sec 165 and 166
d. None of the above

25. Constitution of Motor Vehicle Claims Tribunal falls within the jurisdiction of

a. Central Government
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b. State Government
c. Supreme Court
d. District Courts

26. As per M.V.Act, following injuries are treated as simple injuries

a. Fracture of wrists
b. Dislocation of bone
c. Scar on the face
d. Loss of vision

27. In a MACT Claim, in case of a death of a unmarried male with dependent Father and
Brother, the applicable multiplier is as per the II Schedule of M.V. Act will be

a. Multiplier applicable to the deceased as per his age

b. Multiplier applicable to the father of the deceased as per his age
c. Multiplier applicable to the brother of the deceased as per his age
d. None of the above.

28. In Motor TP claims even if we did not take plea under sec 170 of Motor Vehicle act in
lower courts, we can go on appeal on quantum

a. True
b. False
c. Joint appeal with insured
d. We can appeal directly to Supreme Court

29. Motor TP insurance is not required for cubic capacity of two wheelers in the following
cases

a. Vehicle under 100 cc c. Vehicle with side car

b. Vehicle under 35 cc d. Vehicle specially made for handicapped persons

30. TP premium on a private car is dealt by:

a. Ceded entirely of G.I.C. c. Ceded entirely of India Motor Pool
b. Retained by U/W Company d. Shared by all PSUs

31. WC Claims under Motor policies can be appealed only after one of the following:
a. Conditional satisfaction of the order of the labour commissioner
b. Compliance of notice period
c. Approval of competent authority
d. Satisfaction of the award
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