IC72 Mock Test Sample 13
Motor insurance involves key concepts like IDV calculation based on depreciation and market value, and post-repair assessment including labour, parts, and painting costs. Pecuniary damages are measurable financial losses, while non-pecuniary damages are not easily quantifiable. Legal provisions such as Sections 161, 162, and 163A of the Motor Vehicles Act provide compensation frameworks, including hit-and-run cases and no-fault liability. The Motor Third Party Pool ensures risk sharing among insurers. Add-on covers like NCB protection and return-to-invoice enhance policy benefits. Principles like utmost good faith and insurable interest are essential. Regulatory bodies and structured compensation methods ensure fair claim settlement and policy governance.
1. What should be considered in fixing the IDV of a motor vehicle?
a) Adjustment for depreciation
b) Manufacturer’s listed selling price
c) IDV of accessories and side cars
d) All of the above
2. Which factors are considered for post automotive repair assessment?
a) Spare parts pricing
b) Labour charges and time schedule
c) Painting technology
d) All of the above
3. What are pecuniary damages?
a) Losses not identifiable
b) Losses not quantifiable
c) Actual losses measurable in money
d) Notional losses only
4. What must be proved to claim compensation in Germany motor liability?
a) No proof required
b) Violation of rules
c) Driver negligence
d) Intentional accident
5. Which statements are true for transfer of insurance?
a) Evidence of sale required
b) Administrative fees charged
c) Consent of transferor needed
d) All of the above
6. What is validity of IDP components?
a) Both 1 year
b) Blue 1 year, card 5 years
c) Blue 5 years, card 10 years
d) Blue 1 year, card 10 years
7. Which risks are not covered under Indian Motor Tariff?
a) Body manufacturers
b) Petrol pumps
c) Body builders
d) All of the above
8. Insurer establishes ______ through common standards.
a) Data security
b) Analytics
c) Intelligence
d) Data governance
9. Purpose of Section 163A?
a) Immediate relief
b) Fault liability
c) Premium regulation
d) Traffic control
10. Purpose of Section 161?
a) Hit and run compensation
b) Traffic rules
c) Negligence
d) Premium fixation
11. Why was Motor Third Party Pool created?
a) Product differentiation
b) Protect policyholders
c) Increase competition
d) Share TP losses
12. Which factor is considered in international underwriting?
a) Vehicle color
b) Age of vehicle
c) Marital status
d) Number of drivers
13. Purpose of Section 162?
a) Refund compensation
b) Traffic rules
c) Negligence
d) Premium control
14. What is no-fault liability?
a) Liability without negligence
b) Only fault-based
c) Property damage only
d) Hit and run only
15. Which add-on protects NCB?
a) Return to invoice
b) NCB protection
c) Depreciation cover
d) Key replacement
16. When is vehicle exempt from compulsory TP insurance?
a) Private ownership
b) Local authority
c) Govt non-commercial use
d) Commercial govt use
17. How does Motor TP Pool work?
a) Shared by all insurers
b) Independent participation
c) Selected insurers only
d) Public insurers only
18. Which add-on covers minor parts without affecting NCB?
a) Depreciation cover
b) Return to invoice
c) Repair of parts
d) Key replacement
19. Purpose of avoidance clause?
a) Restrict insured rights
b) Recover from third party
c) Admit fault
d) Exclude claims
20. Role of General Insurance Council in TP Pool?
a) Set underwriting rules
b) Fix premiums
c) Process claims
d) Manage pool directly
