1 A vehicle cannot be insured under:

a) Motor Insurance Policy c) Fire Insurance Policy

b) Contractual Plant and Machinery ins. Policy d) Carriers liability insurance Policy

2 Motor Insurance covers:

a) Normal Wear & Tear c) Loss to vehicle during Towing after the accident
b) Mechanical break down of part without accident d) None of the Above

3 Fresh Proposal Form is not required for Motor Insurance :

a) Before the commencement of cover c) In case of change of insurer
b) For change of IDV at each renewal with same insurer d) At renewal for material alteration other than IDV.

4 All India Motor Tarriff stands withdrawn w.e.f

a) 1st Jan 2002 c) 1st Jan 2007
b) 1st July 2006 d) 1st Apr.2008

5 In which year MV Act was first enacted

a) 1929 c) 1959
b) 1939 d) 1988

6 As per Motor Vehicle Act, a person holding a Learner's Licence should fulfill the conditions:
a) Accompanied by an instructor who is sitting in a position from where vehicle can be controlled
b) Letter L is printed at front and rear
c) Prohibition of carrying any other person on a two wheeler
d) All of the above

7 Driving Licence of a person for driving any vehicle other than tpt. Vehicle is renewed for
a) 3 years c) 10 years
b) 5 years d) For Life Time period

8 Eligible age for driving Veh. Below 50 CC

a) 18 years c) 16 years
b) 20 years d) 21 years

9 As regards risk of 'explosion' to be covered, it means:

a) Only Internal c) Only external explosion
b) Both internal and external d) Covered only by additional premium

10 As per Motor Vehicle Act, the Minimum Age required for driving a transport vehicle is
a) 16 years c) 21 years
b) 18 years d) 20 years

11 Motor insurance is statutory in respect of

a) Comprehensive Cove c) Liability Only with Fire
b) Liability Only Cover d) Liability Only with Fire & Theft

12 Articulated Vehicle means

a) Two wheeler attached with the Side Car c) All Commercial Vehicles
b) Ambulance d) A Motor Vehicle to which a semi trailer is attached.

13 Motor Policies can be extended to cover the geographical area of

a) Afganistan c) Maldives
b) China d) Mayanmar

14 A Car can be insured as Vitage Car

a) All vehicles manufactured before 31.12.1940
b) All vehicles manufactured before 31.12.1970
c) Vehciles manufactured between 31.12.1940 to 31.12.1970
d) Vehicles manufactured before 31.12.1940 & Certified by Vintage & Classic Club of India
15 Classic Cars denotes to Cars manufactured
a) prior to 31.12.1940 c) imported cars
b) after 31.12.1940 and before 31.12.1970 d) None of the above

16 Agreed Value Policies can only be issued to

a) Private Cars c) Classic Cars
b) Vintage Cars d) All of the above

17 What is meant by the term IDV?

a) Insenes Declared Value c) Insured Declared Value
b) Insured’s Depreciated Value d) Insurance Determining Value

18 Arrange sequence for settlement of claim

a) Average, depreciation, salvage, excess c) depreciation, salvage, average, excess
b) depreciation, average, salvage, excess d) None of the above

19 Depreciation is applicable on the basis of the following:

a) Age of the party c) Age of the vehicle
b) Driving license d) Route permit

20 Rate of depreciation for wooden parts under Motor Policies is:

a) 30% c) Nil
b) Same as Plastic Parts d) Same as Metal Parts

21 India is divided into three zones for

a) Two Wheelers c) Commerical Vehicles
b) Private Cars d) All of above

22 Which of the following statement is incorrect

a) No policy is permitted to be issued or renewed for any period longer than twelve months
b) Cover for periods < 12 months can be granted after charging Premium on Short Period Scale.
c) Short period covers for Liability Only Policies are not permissible.
d) None of above

23 Transfer of Insurance Policy on sale of vehicle in favour of purchaser should be made

a) Within 10 day of the sale c) Within 14 days of Sale on the request of purchaser
b) Within 15 days of t/r of RC in the name of purchaser d) Anytime from the date of sale till expiry of the policy

24 Certificate of Insurance has to be issued on

a) Form 51 c) Format As per the software of Insurer
b) Form 52 d) No specific Format devised for the same

25 Which of the following is not correct for cancellation of insurance policy

a) Cancellation of Insurance Policy by insurer/insured after 7 day's notice
b) Full refund of Premium has to be made for the remaining priod on Pro-rata basis.
c) No refund is allowed in case of any claim reported under the Policy
d) Cancellation by insured, refund to be made after charge premium on short period scale

26 The Insurer can cancel the policy by sending notice of

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

27 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) Policy proposed for cancellation is in force c) Both policies are in force on cancellation date
b) Policy not proposed for cancellation is in force d) Both the policies are concurrently in force

28 A Motor Vehicle Policy can be cancelled on request from the insured and refund of the premium will be given
a) Pro rata refund if no claim is made
b) After retaining premium on short period scale even if there is a claim
 c) After confirming that vehicle is insured elsewhere at least for liability coverage, premium calculation to be done
on short period scale and balance to be refunded if there is no claim under the policy
d) No refund is allowed.

29 What is the maximum NCB allowed under Motor OD Premium

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

30 Mr. A sold his vehicle to B who was enjoying 50% NCB what % of NCB would be enjoyed by `B'
a) 50% c) 15%
b) 25% d) Nil

31 After sale of vehicle, the existing NCB can be availed by the insured within
a) 60 days c) 365 days
b) 90 days d) 3 years

32 Discount is allowed for Members of any recognised Automobile Associations in India

a) 5% On the OD premium of any type of Package policy
b) 5% of the OD premium of Private cars/ 2-wheelers insurance policies
c) 2.5 of Entire premium of Private Cars/ 2-wheelers subject to Max. Rs.250/-
d) No Discount is allowed for such membership

33 In case of accident for Insured vehicle taken by Govt for Use

a) Nothing is payable c) insurer will pay over & above amt paid by govt.
b) Total amount is payable under policy d) To be shared equally by Govt. and insurer

34 Restricted cover for Liability only and Fire&/or Theft risk cannot be given to
a) Private Cars c) Class D Misc. & Special Type of Vehicles
b) Commercial Vehicles Less than 5 years d) None of the above

35 In case of purchase of vehicle with co. fitted CNG/LPG but the value is not separately available
a) No additional premium to be charged for CNG/LPG as premium already charged on total IDV
b) 4% additional premium to be charged on the market value of CNG/LPG
c) 5% premium of OD premium to be charged extra for CNG/LPG
d) Only TP premium is to be charged.

36 After the death of the sole insured the Motor policy remains effective for
a) 30 days
b) Till the date of expiry of policy
c) six months
d) Three months or till the date of expiry of policy, whichever is earlier.

37 When Load Challan is required in Motor Claim

a) PCCV c) All Motor Claims
b) loaded GCCV stolen d) Loaded GCCV vehicle met with an accident

38 In Motor Package Policy PA Cover what is not payable

a) PTTD c) DEATH
b) TTD d) None of the above

39 IDV 4.5 Lacs, Repair liability 3.5 Lacs Salvage 1 Lac Calculate Claim payable
a) 2.5 lacs c) 2.5 lacs less excess
b) 4.5 lacs less excess d) none of the above

40 what is not paid under Com. Veh. IMT 21

a) Head Light c) Front Bumper
b) Painting d) All of the above

41 Categorization of Surveyors is done by

a) Institute of Surveyors c) Respective Insurance Companies
 b) Insurance Institute of India d) IRDA

42 Motor Trade Road Risk Policy is given to

a) Banking Institutions c) Motor Dealers
b) Motor Vehicle Garage Owners d) Individual Customers

43 Which one of the following loss is not payable under Motor Package Policy
a) Cost of motor parts c) Labour charges
b) Cost of Glass parts d) Consequential damages

44 ‘Overturning’ can be covered by charging additional premium in

a) Cranes , excavators etc. c) Private cars
b) Commercial vehicles d) Agricultural vehicles

45 ‘Red lining’ in Motor Insurance denotes to

a) Scope of the policy c) Compliance of notice period
b) Timing requirements d) Geographical limits

46 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.250/-
b) Rs.500/- d) Rs.1200/-

47 Maximum towing charges payable in event of claims under goods carrying commercial vehicle is
a) Rs. 1500 c) Rs.2500
b) Rs. 1000 d) Rs.25000

48 A person is having Learner's Licence without any co passenger, in case of claim

a) payable only if a person with valid DL is sitting with him as co-passenger
b) claim not payable
c) claim is payable
d) claim is payable on non standard basis.

49 Which of the following is incorrect?

a) Insurance of a Motor Vehicle is compulsory c) Proposal Form is a part of the policy
b) Policy can be given for TP cover only d) Wear and tear is covered by a motor policy

50 As per Arbitration Clause of the Motor Policies dispute will be referred to sole arbitrator if
a) If the Co. has disputed the liability c) Liability admitted, dispute over quantum to be paid
b) Co. has not accepted the liability d) Any other dispute

ANSWERS

1 c 2 d 3 b 4 c 5 b 6 d 7 b 8 c 9 b 10 d
11 b 12 d 13 c 14 d 15 b 16 b 17 c 18 d 19 c 20 d
21 c 22 d 23 c 24 a 25 b 26 c 27 d 28 c 29 b 30 d
31 d 32 b 33 c 34 c 35 c 36 d 37 d 38 a 39 c 40 d
41 d 42 c 43 d 44 a 45 c 46 b 47 c 48 a 49 d 50 c