IC72 Mock Test Sample 14
Motor insurance includes key concepts like IDP (International Driving Permit), add-on covers such as personal belongings protection, and legal duties under the Motor Vehicles Act. Insurers must satisfy third-party liabilities under Section 149, ensuring compensation is fair and “just.” Mechanisms like Declined Risk Pool and tariff regulations ensure high-risk vehicles are covered. Structured compensation uses fixed formulas for claim calculation. Agreements like Knock-for-Knock simplify settlements between insurers. Pecuniary damages are measurable financial losses, while fraud detection and underwriting practices ensure fair operations. Policy conditions, insolvency rules, and IRDA guidelines further strengthen transparency, customer protection, and efficient claim settlement in motor insurance.
1. In insurance, what does IDP stand for?
a) International Driving Policy
b) Identification Document for Passports
c) Individual Driving Permit
d) International Driving Permit
2. Which add-on covers loss of personal belongings?
a) Engine protector
b) Loss of personal belongings
c) Key replacement
d) Daily allowance
3. Duty of insurer under Section 149?
a) Avoid payment if policy cancelled
b) Pay judgment with costs and interest
c) Pay only if no negligence
d) No obligation to pay
4. What is “just compensation”?
a) Arbitrary amount
b) Excessive payment
c) Fair and reasonable compensation
d) Fault-based only
5. Purpose of Declined Risk Pool?
a) Insurer choice of liability
b) Cover high-risk vehicles
c) Centralize underwriting
d) Remove insurance supply issues
6. Practice after de-tariffing is called?
a) Globalised motor insurance
b) International motor insurance
c) Underwriting strategy
d) Risk profiling
7. When can insurer defend a claim?
a) If insured innocent
b) Breach of policy condition
c) Third party negligence
d) Policy cancelled
8. Structured compensation method means?
a) No fault method
b) Negligence-based
c) Fixed formula calculation
d) Property damage method
9. Purpose of IRDA tariff for TP premium?
a) Give full autonomy
b) Avoid underwriting
c) Ensure availability of cover
d) Same premium for all
10. Rights in case of insured insolvency?
a) Transfer to insurer
b) Not affected
c) Insurer not liable
d) Transfer to third party
11. Purpose of Knock-for-Knock Agreement?
a) Decide fault
b) Simplify settlement
c) Reduce premium
d) Avoid damage payment
12. Variables in US rating pattern?
a) Age, gender, marital status
b) Vehicle use
c) Geographical area
d) All of the above
13. Valid TP settlement under Section 152?
a) Approved by insured
b) Approved by court
c) Third party involved
d) Before liability incurred
14. Reena’s payable claims include?
a) Pain and suffering
b) Loss of income
c) Medical expenses
d) All of the above
15. Damages measurable in money are?
a) Non-pecuniary
b) Pecuniary
c) Fictional
d) General
16. Mid-term inclusion allowed?
a) Once
b) Twice
c) Thrice
d) Not permitted
17. Which are fraud examples?
a) Fake injury addition
b) Vehicle substitution
c) False accident claim
d) All of the above
18. IRDA file and use guidelines include?
a) Data-based pricing
b) Policyholder protection rules
c) Simple language
d) All of the above
19. Buyer gets insurable interest when?
a) Possession
b) Registration
c) Sale completion
d) All of the above
20. Dishonour of cheque valid defense in?
a) Own property
b) Own damage
c) Third party
d) None of the above
