Q 1. What was the first type of insurance coverage introduced in motor insurance history?

a) Third party liability insurance

b) Comprehensive insurance

c) Accidental damage insurance

d) Fire insurance

e) Theft insurance

Report

Q 2. Which company was established in 1903 mainly to transact motor insurance?

a) Car and General Insurance Corporation Ltd.

b) United Motors Insurance

c) National Motor Insurers

d) Motor Vehicle Assurance Co.

e) General Auto Coverage Ltd.

Report

Q 3. What led to the introduction of compulsory third party insurance in the UK?

a) World War I

b) Introduction of motor vehicles

c) Increase in road accidents

d) Establishment of insurance companies

e) Passing of the Road Traffic Act, 1930

Report

Q 4. What triggered the transition from Tariff to non-Tariff policies in motor insurance in India?

a) Increase in vehicle sales

b) Introduction of new technology

c) Directive from IRDA

d) Passage of Motor Vehicles Act, 1988

e) Establishment of Car and General Insurance Corporation

Report

Q 5. What does the principle of Uberrimae Fides (utmost good faith) require in motor own damage insurance contracts?

a) Complete disclosure of material facts

b) Minimal disclosure of material facts

c) No disclosure of material facts

d) Disclosure of non-material facts

e) Disclosure only after a claim is made

Report

Q 6. Who has an insurable interest in a motor vehicle under hypothecation agreement?

a) Owner

b) Financier

c) Buyer

d) Seller

e) Joint Owner

Report

Q 7. What is the principle of indemnity applied in total loss claims in motor insurance?

a) Market value of the vehicle

b) Insured's Declared Value (IDV)

c) Cost of parts replaced

d) Depreciated value of the vehicle

e) Manufacturer's price of new vehicle

Report

Q 8. When does the doctrine of subrogation apply in motor insurance?

a) Before the claim is paid

b) After the claim is paid

c) Only in case of theft claims

d) Only in case of repair claims

e) Only in case of total loss claims

Report

Q 9. When does contribution arise in motor insurance?

a) When there is double insurance

b) When there is no insurable interest

c) When the vehicle is not registered

d) When the vehicle is not insured

e) When there is subrogation

Report

Q 10. What does the doctrine of proximate cause determine in motor insurance claims?

a) The party responsible for the loss

b) The exact monetary value of the loss

c) Whether the loss is covered under the policy

d) The age of the insured vehicle

e) The number of parties involved in the claim

Report

Q 11. Which Act came into force in July 1939 and made provisions for various matters relating to motor vehicles?

a) Motor Vehicles Act, 1988

b) Motor Vehicles Act, 2000

c) Motor Vehicle Act, 1939

d) Motor Vehicles Amendment Act, 2008

e) Motor Vehicles Act, 1955

Report

Q 12. When did Chapter VIII of the Motor Vehicle Act, 1939, which provided for insurance of motor vehicles against third party risks, come into force?

a) 1st July, 1946

b) 1st July, 1939

c) 1st October, 1982

d) 1st July, 1989

e) 1st January, 1939

Report

Q 13. Which Act replaced the Motor Vehicles Act, 1939, and became effective from 1st July, 1989?

a) Motor Vehicles Act, 2000

b) Motor Vehicles Amendment Act, 2008

c) Motor Vehicles Act, 1955

d) Motor Vehicles Act, 1988

e) Motor Vehicle Act, 1939

Report

Q 14. Which Act consolidated and rationalized various laws regulating road transport, including provisions for vehicles operating on eco-friendly fuels?

a) Motor Vehicles Act, 1988

b) Motor Vehicles Amendment Act, 2008

c) Amendment Act 54 of 1994

d) Amendment Act 39 of 2001

e) Amendment Act 27 of 2000

Report

Q 15. What does the term "Gross Vehicle Weight" mean in respect of any vehicle?

a) Total weight of the vehicle

b) Weight of the vehicle excluding load

c) Weight of the vehicle and load certified and registered by the Registering Authority

d) Weight of the vehicle and load as per manufacturer's specification

e) Weight of the vehicle when unladen

Report

Q 16. What is the necessity for obtaining a permit for a transport vehicle according to Section 66 (1) of the Motor Vehicle Act, 1988?

a) Permits are required for vehicles carrying passengers only

b) Permits are not required for goods vehicles

c) Permits are necessary for all motor vehicles used as transport vehicles in public places

d) Permits are only required for vehicles exceeding 3000 kilograms in weight

e) Permits are required for vehicles registered in other states

Report

Q 17. Which category of vehicles is exempted from the necessity of obtaining a permit?

a) Vehicles belonging to Central or State Government

b) Goods vehicles with gross vehicle weight not exceeding 3000 kilograms

c) Vehicles registered in other states

d) Luxury buses

e) Vehicles with clean fuel running capacity

Report

Q 18. Under what circumstances is a temporary permit issued for a transport vehicle?

a) To convey passengers on special occasions

b) For vehicles with a gross vehicle weight exceeding 3000 kilograms

c) For permanent business needs

d) To replace expired permits

e) To transport goods within the state

Report

Q 19. What is the purpose of counter signatures of Goods Carrier Permits?

a) To endorse permits issued by other states

b) To validate expired permits

c) To waive the necessity of permits

d) To extend the duration of permits

e) To grant permits for multi-axle vehicles

Report

Q 20. What type of permit is issued for luxury buses with specific facilities like public address systems, drinking water, and push full back seats?

a) Stage Carriage Permit

b) All India Tourist Permit

c) Rent-a-Cab Permit

d) Institution / School Bus Permit

e) Temporary Permit

Report

Q 21. What are some of the proposed changes in the Motor Vehicles (Amendment) Bill, 2008 regarding fines for traffic offences?

a) Fines have been reduced across the board.

b) Fines for traffic offences have been kept the same.

c) Fines for traffic offences have been significantly increased.

d) Fines for traffic offences have been completely abolished.

e) Fines for traffic offences have been delegated to state governments.

Report

Q 22. What is the purpose of the Solatium Scheme mentioned in the document?

a) To establish a regulatory framework for bus body builders.

b) To provide compensation to victims of hit and run motor accidents.

c) To streamline the process of issuing driving licenses.

d) To set limits on fines for traffic offences.

e) To regulate the plying of stage and contract carriages.

Report

Q 23. What is the maximum fine proposed for rash and negligent driving under the Motor Vehicles (Amendment) Bill, 2008?

a) Rs. 2,000

b) Rs. 5,000

c) Rs. 10,000

d) Rs. 15,000

e) Rs. 20,000

Report

Q 24. What authority will be empowered to issue driving certificates under the proposed amendments?

a) Regional Transport Office

b) State Governments

c) Insurance Regulatory and Development Authority

d) Automobile Associations and Institutions

e) Central Institute of Road Transport

Report

Q 25. What is the purpose of the Bus Body Builders Accreditation System?

a) To regulate the issuance of learner's licenses.

b) To provide compensation to accident victims.

c) To establish a system for effective implementation of Solatium Scheme.

d) To ensure that buses are built according to safety norms.

e) To increase fines for traffic offences.

Report

Q 26. What major change does the proposed bill introduce regarding the suspension of driving licenses for drunken driving?

A) It shifts the authority to suspend licenses from the licensing authority and court to any authorized authority checking the license.

B) It increases the period of suspension to up to six months.

C) It eliminates the provision for suspending licenses altogether.

D) It introduces a fine instead of suspension for drunken driving.

E) None of the above.

Report

Q 27. How does the proposed bill suggest changing the compensation process for motor accidents?

A) It introduces a fixed compensation amount for all accidents, regardless of fault.

B) It replaces the current mechanism with a court or Tribunal-based estimation of compensation, without providing specific guidelines.

C) It removes compensation for motor accidents entirely.

D) It proposes a formula based on victim's age and income, with no upper limit on the compensation amount.

E) None of the above.

Report

Q 28. According to the proposed bill, what recommendation does the Standing Committee and Law Commission of India provide for penalties related to speeding and drunken driving?

A) Implementing a system of de-merit points for traffic violations.

B) Introducing a fixed penalty amount for all speeding and drunken driving cases.

C) Basing penalties on incremental slabs for exceeding speed limits and drunken driving.

D) Removing penalties for speeding and drunken driving entirely.

E) None of the above.

Report

Q 29. What is the proposed additional penalty for rash and negligent driving according to the bill?

A) Imprisonment for up to one year.

B) A fine of up to Rs. 5,000 deposited in the Solatium Fund.

C) Revocation of the driver's license.

D) Mandatory attendance of a driving safety course.

E) None of the above.

Report

Q 30. What does the proposed bill aim to change regarding consignor liability for exceeding weight limits?

A) It seeks to impose additional liability on the consignor of goods in some cases.

B) It entirely removes the concept of consignor liability.

C) It increases the stipulated weight limit for vehicles.

D) It shifts all liability for exceeding weight limits to the owner of the vehicle.

E) None of the above.

Report

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IC72 - Motor Insurance Exam

IC72 - Motor Insurance Exam

Chapter 01

IC72 - Motor Insurance Exam

Q 1. What was the first type of insurance coverage introduced in motor insurance history?

Q 2. Which company was established in 1903 mainly to transact motor insurance?

Q 3. What led to the introduction of compulsory third party insurance in the UK?

Q 4. What triggered the transition from Tariff to non-Tariff policies in motor insurance in India?

Q 5. What does the principle of Uberrimae Fides (utmost good faith) require in motor own damage insurance contracts?

Q 6. Who has an insurable interest in a motor vehicle under hypothecation agreement?

Q 7. What is the principle of indemnity applied in total loss claims in motor insurance?

Q 8. When does the doctrine of subrogation apply in motor insurance?

Q 9. When does contribution arise in motor insurance?

Q 10. What does the doctrine of proximate cause determine in motor insurance claims?

Q 11. Which Act came into force in July 1939 and made provisions for various matters relating to motor vehicles?

Q 12. When did Chapter VIII of the Motor Vehicle Act, 1939, which provided for insurance of motor vehicles against third party risks, come into force?

Q 13. Which Act replaced the Motor Vehicles Act, 1939, and became effective from 1st July, 1989?

Q 14. Which Act consolidated and rationalized various laws regulating road transport, including provisions for vehicles operating on eco-friendly fuels?

Q 15. What does the term "Gross Vehicle Weight" mean in respect of any vehicle?

Q 16. What is the necessity for obtaining a permit for a transport vehicle according to Section 66 (1) of the Motor Vehicle Act, 1988?

Q 17. Which category of vehicles is exempted from the necessity of obtaining a permit?

Q 18. Under what circumstances is a temporary permit issued for a transport vehicle?

Q 19. What is the purpose of counter signatures of Goods Carrier Permits?

Q 20. What type of permit is issued for luxury buses with specific facilities like public address systems, drinking water, and push full back seats?

Q 21. What are some of the proposed changes in the Motor Vehicles (Amendment) Bill, 2008 regarding fines for traffic offences?

Q 22. What is the purpose of the Solatium Scheme mentioned in the document?

Q 23. What is the maximum fine proposed for rash and negligent driving under the Motor Vehicles (Amendment) Bill, 2008?

Q 24. What authority will be empowered to issue driving certificates under the proposed amendments?

Q 25. What is the purpose of the Bus Body Builders Accreditation System?

Q 26. What major change does the proposed bill introduce regarding the suspension of driving licenses for drunken driving?

Q 27. How does the proposed bill suggest changing the compensation process for motor accidents?

Q 28. According to the proposed bill, what recommendation does the Standing Committee and Law Commission of India provide for penalties related to speeding and drunken driving?

Q 29. What is the proposed additional penalty for rash and negligent driving according to the bill?

Q 30. What does the proposed bill aim to change regarding consignor liability for exceeding weight limits?

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