ICS06 - Motor Insurance (Surveyor) Mock Test 14

Motor insurance underwriting and claims management involve assessing risks, determining premiums, managing reserves, handling reinsurance and applying policy endorsements. Coolies or loaders may be covered subject to policy limits and applicable conditions. Loss reserves represent estimated future payments for outstanding claims. IMT.1 relates to discounts for approved anti-theft devices. Reinsurance enables insurers to transfer or cede part of their risk to reinsurers. Vehicle classification may consider cubic capacity slabs for private cars. Voluntary excess is selected by the insured to reduce premium. Owners may have vicarious liability for drivers acting during employment. Surveyors should also understand Zero Depreciation claim limits and applicable policy conditions.

1. Coolies/loaders engaged to load/unload are:

a) Covered subject to limits as per policy
b) Excluded
c) Free
d) Compulsory unlimited

2. ‘Loss reserves’ are estimates of:

a) Likely future payments on outstanding claims
b) Premium
c) Income
d) Expenses

3. ‘IMT.1’ endorsement relates to:

a) Discount for fitting anti-theft devices approved by ARAI
b) Hypothecation
c) Driver restriction
d) Use restriction

4. ‘Reinsurance’ arrangement allows an insurer to:

a) Cede part of risk to reinsurer (e.g., GIC Re)
b) Cancel claim
c) Refund premium
d) Avoid licence

5. Cubic capacity slabs under IMT for private cars typically were:

a) Up to 1000cc, 1001–1500cc, above 1500cc
b) Up to 800cc only
c) Up to 2000cc only
d) No CC slabs

6. Voluntary excess is chosen by:

a) The insurer
b) The insured
c) The surveyor
d) The RTO

7. Motor insurance underwriting involves:

a) Assessing risk and pricing the premium accordingly
b) Settling claims
c) Issuing licence
d) Issuing permit

8. Owner is vicariously liable for acts of:

a) Driver in course of employment
b) Stranger driving without permission
c) Co-passenger
d) RTO official

9. Typical limit of free Zero Dep claims is:

a) Once a year
b) Twice a year (varies by insurer)
c) Five claims
d) No limit

10. ‘Free Look Period’ for motor insurance is:

a) Generally not applicable (annual product)
b) 30 days
c) 15 days
d) 1 year