ICS06 - Motor Insurance (Surveyor) Mock Test 04

Motor insurance includes mandatory third-party insurance, underwriting procedures, claim settlement and various add-on covers. Long-term third-party insurance for new two-wheelers is an important regulatory requirement. Add-on covers became increasingly popular after motor insurance detariffing. Underwriting involves KYC verification, vehicle photographs, RC verification and NCB confirmation. Standard motor policies generally cover risks such as lightning damage, subject to policy terms. Theft claims are normally assessed as total-loss claims based on applicable IDV provisions. Surveyors must understand Section 158(6), MACT procedures, limitation periods, salvage tender processes and compromise settlements. Proper documentation, accurate assessment and compliance with Motor Vehicles Act provisions are essential for effective claim handling.

1. Long-term TP insurance for new two-wheelers, mandatory under the Supreme Court ruling of 2018, is for:

a) 3 years
b) 5 years
c) 10 years
d) Lifetime

2. Add-on covers gained popularity post:

a) Detariffing 2007
b) MV Act 1988
c) IRDAI Act 1999
d) Insurance Act 1938

3. Short-period rate for 1 month is approximately:

a) 10% of annual premium
b) 15% of annual premium
c) 25% of annual premium
d) 100% of annual premium

4. Underwriting checklist includes:

a) KYC of insured, vehicle photograph, RC verification, NCB verification
b) Premium discount only
c) Color check
d) RTO photograph

5. Lightning damage is:

a) Covered
b) Excluded
c) Conditional
d) Free

6. Section 158(6) facilitates:

a) Police forwarding accident details to insurer & MACT
b) Premium calculation
c) RTO record
d) Free

7. ‘Theft of vehicle’ claim is settled on:

a) Repair basis
b) Total Loss basis at IDV
c) Pro-rata basis
d) Salvage basis

8. Limitation period for filing a claim petition before MACT under Section 166 after the 2019 amendment is:

a) 6 months
b) 1 year
c) 6 months from accident
d) No limitation (was abolished but reinstated as 6 months)

9. Salvage tender process is invoked when:

a) Salvage is to be realized by insurer
b) Always
c) Never
d) Free

10. ‘Compromise/Settlement’ is recorded by:

a) Award of Tribunal in terms of compromise
b) RTO record
c) Premium increase
d) Free