ICS06 - Motor Insurance (Surveyor) Mock Test 19
Motor insurance involves NCB discounts, income considerations, policy transfers, police reports, future prospects and various regulatory provisions. NCB is generally applied to the own-damage portion of the premium. When ownership changes, transfer of the applicable policy portion must be completed within the prescribed period. A B-Final police report indicates closure of an investigation without a charge-sheet in relevant circumstances. Future prospects are considered in compensation calculations according to employment and age. In a CTL claim, salvage retained by the insured may affect compensation. Surveyors should understand policy cancellation provisions, Pay As You Drive products, statutory reinsurance requirements and the information contained in the policy schedule.
1. ‘No Claim Bonus’ (NCB) is given as a discount on:
a) Total premium
b) Own damage premium only
c) Third party premium only
d) Personal accident premium only
2. Income tax, where applicable, is:
a) Deducted from gross income before computing dependency loss
b) Added to income
c) Ignored always
d) Free
3. Transfer of the OD portion of a policy after sale must be applied for within:
a) 7 days
b) 14 days
c) 30 days
d) 60 days
4. Final report (B-Final) means:
a) Police closed investigation without charge sheet (often untraced)
b) Charge sheet filed
c) Compensation paid
d) Vehicle scrapped
5. Future prospects for self-employed persons below 40 are:
a) 40%
b) 30%
c) 25%
d) 10%
6. Statutory cession to GIC Re is currently:
a) 4% (decided annually)
b) 10%
c) 25%
d) Nil
7. In a CTL claim, salvage retained by the insured:
a) Reduces compensation by salvage value
b) Doesn't affect claim
c) Increases claim
d) Premium reduction
8. Cancellation of a Liability Only policy can be done by:
a) Insurer giving 7 days' notice
b) Insurer without notice
c) Insured giving 1 day notice
d) RTO
9. Pay As You Drive is approved by IRDAI under:
a) Sandbox/regulatory experimentation
b) TP tariff
c) PA
d) Engine
10. ‘Policy Schedule’ contains:
a) Sum insured / IDV, premium, period of insurance, vehicle details
b) Only premium
c) Only IDV
d) Only period
