ICS06 - Motor Insurance (Surveyor) Mock Test 05

Motor insurance involves several principles, statutory requirements and claim assessment procedures. Insurable interest, policy coverage, depreciation, vehicle age and personal accident protection are important considerations. Driving without valid insurance is punishable under the Motor Vehicles Act. Owner-driver personal accident cover applies subject to the policy terms and applicable conditions. Vehicle age influences IDV, depreciation and underwriting decisions. MACT proceedings involve notices to relevant parties such as the owner, driver and insurer. Surveyors should understand the historical role of the Tariff Advisory Committee, tribunal awards, anti-theft device discounts and compensation concepts such as loss of consortium. Proper knowledge of these provisions supports accurate motor claim assessment

1. Insurable interest in motor insurance must exist:

a) Only at the time of loss
b) Only at inception
c) Throughout the policy period
d) Only at renewal

2. Driving without insurance is punishable under MV Act Section:

a) 177
b) 180
c) 187
d) 196

3. Personal Accident cover for owner-driver is covered:

a) When driving the insured vehicle
b) When driving any vehicle
c) Even when not driving
d) Only at home

4. Depreciation on metal parts for vehicles 6 months to 1 year is:

a) 5%
b) 10%
c) Nil
d) 15%

5. ‘Vehicle age’ affects:

a) IDV, depreciation, accept/decline decision
b) Color choice
c) Owner's age
d) Premium discount only

6. Notice issued by MACT is issued to:

a) Owner, driver, insurer
b) Only insurer
c) Only police
d) RTO

7. Tariff Advisory Committee was set up under the:

a) Motor Vehicles Act 1988
b) Insurance Act 1938
c) IRDAI Act 1999
d) Indian Contract Act

8. Section 168 deals with:

a) Award of Tribunal
b) Limitation
c) Appeal
d) Permit

9. Anti-theft device discount under IMT.1 was:

a) 2.5% of OD premium subject to a maximum
b) 10%
c) 15%
d) 25%

10. ‘Loss of Consortium’ is awarded to:

a) Spouse, parents, children (per recent SC rulings)
b) Only spouse
c) Only children
d) Free