ICS06 - Motor Insurance (Surveyor) Mock Test 20

Motor insurance includes provisions relating to trade plates, cancellation refunds, vehicle classifications, voluntary excess, compensation heads, cashless settlement and statutory schemes. Trade plates are associated with motor traders for specific permitted purposes. Cancellation refunds may be calculated using applicable short-period rates and deductions. Stage Carriage vehicles transport passengers for hire or reward at separate fares. Voluntary excess can provide a premium discount based on the selected excess amount. Surveyors should understand conventional compensation heads, MVAF provisions for motor accident victims, Solatium schemes for hit-and-run cases and cashless claim procedures. Optional co-passenger personal accident cover and bundled long-term policies are also important motor insurance concepts.

1. ‘Trade plate’ is used by:

a) Owner of new vehicle
b) Driver of taxi
c) Motor trader
d) Police

2. ‘Cancellation by insured’ refund is based on:

a) Short period rate (after deducting expenses)
b) Pro-rata refund
c) Full refund
d) No refund

3. ‘Stage Carriage’ is defined under Section 2(40) as carrying:

a) Passengers for hire/reward at separate fares for separate passengers
b) Goods
c) Owner's family
d) Tourists only

4. Voluntary excess gives discount based on:

a) Amount of voluntary excess
b) Color
c) Make
d) Owner's age

5. Funeral expenses awarded as a conventional head are:

a) Rs. 5,000
b) Rs. 15,000
c) Rs. 25,000
d) Rs. 50,000

6. MVAF was introduced by:

a) MV Act 2019 amendment
b) 1988 Act
c) IRDAI Act
d) Insurance Act

7. Claim settlement on a cashless basis is generally:

a) Within IRDAI prescribed turnaround time after final survey
b) 1 year
c) Never
d) Free

8. Section 161 deals with:

a) Solatium scheme for hit-and-run cases
b) Tribunal
c) Permit
d) Driver

9. ‘Co-passenger PA’ for a two-wheeler/private car is:

a) Optional add-on with extra premium
b) Compulsory
c) Free
d) Excluded

10. ‘Bundled long-term policy’ (TP + OD) was introduced because:

a) To reduce uninsured vehicles
b) To increase premium
c) To reduce premium
d) To eliminate OD