ICS06 - Motor Insurance (Surveyor) Mock Test 18
Motor insurance policies are contracts of indemnity based on the principle of utmost good faith. Section I of a motor policy generally covers own-damage risks while excluding wear and tear, mechanical or electrical breakdown and depreciation. Liability Only policies primarily provide third-party liability protection. Surveyors must understand exclusions, permitted vehicle use, endorsements and driver-related conditions. A fake or invalid driving licence may affect insurer liability depending on the circumstances and applicable legal principles. IMT endorsements specify particular vehicle uses or extensions. Private car policies generally exclude racing, speed testing and hire or reward. Compensation also includes conventional heads such as loss of consortium, subject to applicable judicial revisions.
1. Depreciation on metal parts for vehicles 1–2 years old is:
a) 10%
b) 15%
c) 20%
d) 25%
2. Liability Only policy is a contract of:
a) Indemnity
b) Wagering
c) Guarantee
d) Bailment
3. Section I excludes:
a) Wear and tear, mechanical/electrical breakdown, depreciation
b) Accident damage
c) Fire damage
d) Theft
4. ‘Fake licence’ issue: insurer can avoid liability if:
a) Owner knowingly hired unlicensed driver / no due diligence
b) Driver had any licence
c) Licence revealed later
d) RTO confirmed
5. ‘IMT.17’ endorsement is for:
a) Use of trailer attached
b) Use as taxi
c) Hypothecation
d) Driver
6. Use NOT covered on a private car policy includes:
a) Hire/reward, speed test, reliability trial, racing
b) Office travel
c) Personal use
d) Family travel
7. Insurance contracts are based on the principle of:
a) Caveat emptor
b) Utmost good faith
c) Caveat venditor
d) Strict liability
8. Conventional heads – Loss of Consortium per claimant is:
a) Rs. 15,000
b) Rs. 40,000+ (revised)
c) Rs. 5,000
d) Rs. 1,00,000
9. Class D under erstwhile IMT was:
a) Commercial vehicles – passenger
b) Goods carriers
c) Trailers only
d) Tractors
10. Class C under erstwhile IMT was:
a) Commercial vehicles – goods
b) Private cars
c) Two-wheelers
d) Trailers
