Sr. No.

Question Correct Answer Option 1

1 Which type of alteration is not permitted as per change of tyres of higher use of trailer
MV Act ( Amendment) 2000 ? capacity
2 Which Sections of MV act 1988 deals with Sections 165 to 176 Section 157
claims tribunals?
1 Declined Risk Insurance Pool applies to all commercial vehicles to all vehicles
for standalone third party covering third party
insurance insurance

1 What is E-cart or e-rickshaw? battery powered vehicle battery powered

of vehicle of
power not exceeding power not exceeding
4000 watts having three 4000 watts having
wheels for carrying goods three wheels for
or carrying
passengers, passengers,

2 Person holding an effective Learner‘s Licence All of them Transport of goods

may drive when not used for
the transport of
goods at the time of
accident

3 Insurance repository system allows policy in electronic form in electronic form

holders to keep insurance policies in
4 Liability covers under package policies Option 1,2,& 3 in the case of private
cars and two-
wheelers the death or
bodily injury
includes occupants/
pillion rider carried in
the vehicle.

5 Whether property of insured or belonging to Policy does not cover policy belonging to
others or kept in trust is covered by Package property held in trust or insured is covered.
policy. in control of the insured
6 What are essential covers under Liability only All of them Passenger Liability in
policies. Public Passenger
service Vehicles

7 What are non essential covers under Liability 1&2 both Personal accident
only policies. covers for un-named
passenger
8 What is the standard to which India is a 56 kmph crash test 56 kmph crash test
signatory of UN standard for safe vehicles
(R94)?
9 What is the global New Car Assessment 64 kmph (NCAP standard) 64 kmph (NCAP
Programme (NCAP) standard? standard)
10 What are the pricing objectives for insureres I, II & III I only
from the below mentioned.
I. Premium adequacy.
II. Fairness
III. simplicity, Consistenct and flexibiity.

11 What is th impact of credit rating on motor no credit history is Credit history does
underwriting? suggestive of single not suggest any thing
vehicle owner, who is in Insurance
financially incapable to
get repairs, may try for
Total Loss or Constructive
Total Loss.

12 What is underwriting scores? I; II & III only factors are identified

and a score is
provided for factors
are identified and a
score is provided for
each factor on a
predetermined scale

13 What is Insurance Risk Score? Insurance scores‘ are used Insurance scores‘ are
to evaluate ones past use used to evaluate ones
of credit to predict how past use of credit to
likely he is to make claims predict how likely he
in the future. is to make claims in
the future.

14 What is "Claims score".? Claims score combines claims scores furnish

credit information of previous claims
insured and his previous history of Insured to
claims history to predict predict future
future claims level
claims level

15 What is a "Claims Search System". Option II; III; and IV used by insurers
in deciding whether
to sell a policy or set
rate

Ankur was issued renewal notice by ABC XYZ insurance can reject XYZ must honour
insurance 2 months before expiry, showing 25% the claim on the basis of NCB as per renewal
NCB under no claim bonus protection while confirmation of previous notice
ABC Insurance paid a claim of 4500/- before insurer about availing
issuing the renewal Notice . The new insurer claim in expiring Policy
1_4 XYZ insurance refused to pay a claim on the and is not bound by
pretext of non disclosure of past year claim. Renewal Notice.
Whether XY Z Insurance is within its right to
reject claim?
 The direct relationship between cause of transmission of the Age of the vehicle
accident and damage to vehicles depends upon impact load, jerk load and and that of driver
absorption of these load
waves at different points
by the chassis of impact
1_5 cling upon the
circumstances of accident,
intensity and structure of
the vehicle

1 Whether a claim is payable if an analytical Motor Insurance Policy The analysis is wrong
study of the claim reveals that the cause of does not cover break as shearing forces do
accident is due to sudden shearing off a down of a part not apply in the
particular part resulting in the vehicle to go out which was the material accident . The claim is
of control resulting in damages to vehicle going cause of accident. The payable in full.
off the road? claim is payable for
damages to vehicle
excluding the cost of
damaged part

2 Analyse and find which statement is true, if a Option I ;II & III An uninsured vehicle
person drives other's uninsured vehicle and is driven by a person
causes an accident ? other than owner, in
contravention of the
Third party
mandatory insurance,
results in Criminal
liability on person
driving other car for
accidental death

3 What does expiry date of a Driving licence will All of them whether the Driving
disclose? license was current at
the time of the
accident?

4 Whether fitness certificate is essential for Section 56 of the MV Act Fitness Cerificate
plying a vehicle? 1988 specifically states authorises the owner
that the Vehicle to use the vehicle
registration is invalid commercially.
without the ‗Fitness
certificate‘
5 Motor insurance policy is maintenance Option 1,2 & 3 Motor insurance
contract, Analyse and state which options are policy is an Indemnity
true. contract.

Before releasing the actual payment to the I, II & III I only

insured in a Claim on a Constructive Total Loss
basis (CTL), the insurers collect
i. Registration book and Taxation receipt,
ii. Ignition keys in duplicate and
iii. Blank TO and T.T.O. forms duly signed by the
insured
6
7 Which statement is true for Cash Less Option 1, 2 & 3 All claim formalities
settlement? like completion of
claim form,
submission of vehicle
documents are
completed by
preferred garages

Who is liable for damages to vehicle caused by Municipal Authorities Municipal Authorities
8 open manhole on the public roads?
What is insurance claims salvage? damaged parts for which things that are saved
replacements have been from a disaster or
allowed accident
9
Computerised insurance estimating systems are All of them Parts prices,
10 known which provide access to availability of parts,

Surveyor has to be appointed for assessing a Option 1; 2 & 3 Within 72 hours of

loss / claim, it shall be so done the receipt of
intimation from the
insured
11

When pre-insurance inspection is mainly for Option 1; 2 & 3 when fixing IDV for
valuation of the vehicle to give a detailed vehicles more than
report of pre-accident condition of the vehicle five year old for
12 …… establishing state of
repairs
 What is the role of Surveyour? All of them
Ascertaining actual
cause of accident and
establishing a relation
between ―cause of
accident‖ and
damages caused
13 there from
What are the causes of accident in road
34 transpotation? Option 1,2 & 3 only Human Cause
Option 2 Option 3 Option 4 Option 5
use of Liquefied Petroleum Gas (LP change of tyres of higher use of eco-friendly fuel electronic appliances
capacity
Sections 165 to 176 Sections 145 to 164 Sections 140 to 144 Sections 66
Sections 66 & 67
to all commercial vehicles To all miscellaneous for all riskd declined by only for goods carrying
for standalone third party vehicles declined by Insurance Companies in vehicles insurance
insurance private sector insurers India declined by any
insurer.

battery powered vehicle of Any battery powered Any non traditional fuel MV Act does not
power not exceeding 4000 watts passenger carrying vehicle operated rickshaw include E-cart or e-
having three wheels for carrying powered rickshaw
goods or
passengers,

Transport of passengers when not 2 Wheeler with a pillion 4 wheeler: only if All of them
used for the transport of rider only when pillion accompanied with a
passengers at the time of accident rider possess duly Permanent valid and
licenced effective Driving licence
holder

in paper form only as security as option as futures

includes loading/unloading TPPD is covered for Option 1 & 3 only Option 1,2,& 3
operators for goods carriage Motorised two-wheelers
vehicles Rs. 100000/-and for all
other vehicles 7.50 lakhs

Policy does not cover property policy covers property policy covers property in All of them
held in trust or in control of the held in trust control of the insured
insured
Bi-fuel vehicles Liability for persons PA to owner driver All of them
employed in connection
with the operation of the
vehicle

Liability for non-fare paying 1&2 both

passengers

64 kmph crash test 48 kmph crash test 80 kmph None

56 kmph crash test (NCAP standard80 kmph (NCAP standard) 48 kmph crash test (NCAP s None
I, II & III I & II only II & III only I & III only

No credit history is suggestive of Credit history does not Good credit history allows Good credit history
single vehicle owner, who is affect motor underwriting Insurer to underwrite reflects bad moral
financially incapable to get business hazard
repairs, may try for Total Loss or
Constructive Total Loss.

Each factor is analysed separately Favourable and adverse I; II & III only II & III Only
and its impact is converted into a factor scores are added
score and a net score is found
out added and a net score
is found out

Score allotted by Insurance Scores assigned by Score based on average Scores assigned by
company to his customer based General insurance council number of claims preferred IRDAI to an insurer on
on profit from his portfolio of India to the by an insurerd in last three renewal of his licence.
manufacturers of different years.
vehicles

Claims scores are mandatory for Claims score combines Claims scores are part of Claims Scores are part
underwritng renewal business credit information of insurance scores used in of Motor vehicle
insured and his previous accepting new business records required by
claims history to predict Claims settling
future Authority.
claims level

to detect fraud and to help Claim Search system not used by insurers Option II; III; and IV
insurers identify policyholder searches the database for in deciding whether to sell
claims histories other claims made by the a policy or set rate
same person or business

ABC Insurance must disclose full ABC insurance is under no ABC insurance has no XYZ insurance can
terms and conditions in the obligation to write obligation for NCB shown reject the claim on the
renewal notice conditions of the policy in renewal notice to XYZ basis of confirmation
insurance . of previous insurer
about availing claim in
expiring Policy and is
not bound by Renewal
Notice.
various external environmental transmission of the past claims experience of the traffic intensity
factors which are not under the impact load, jerk load and the owner of the vehicle and condition of the
control of the driver of the vehicle absorption of these load road
waves at different points
by the chassis of impact
cling upon the
circumstances of
accident, intensity and
structure of the vehicle

The analysis is right the claim is Motor Insurance Policy Motor Insurance Policy The insured has
payable in full does not cover break does not cover mechanical fabricated the cause of
down of a part break down which was the accident as shearing
which was the material material cause of accident, forces generally do not
cause of accident. The hence the claim is not apply in the accident
claim is payable for payable. and most of the time
damages to vehicle they are bending
excluding the cost of forces. Nothing is
damaged part payable.

Authorizing to drive an uninsured Owner of the car remains Option I & III only Option I ;II & III
car remains a civi lliability under responsible to pay
MV Act 1988 compensation to the
injured Third Parties as
per MV Act 1988

If the license has already expired, Even when the If he had held only a All of them
the Driver Clause provides that permanent license had learner's license in the past
the person driving must have held expired prior to the date and which was not
a license in the past and is not of accident, the claim will followed by a Permanent
disqualified from obtaining such not be settled until the License, the
license driver applies for and claim will not be payable.
and is not disqualified from produces a fresh license
obtaining such license.

Fitness certificate does not affect Section 56 of the MV Act Fitness Certificate is made option 1 & 2
registration of the vehicle 1988 specifically states compulsory by Nattional
that the Vehicle Green Tribunal
registration is invalid
without the ‗Fitness
certificate‘
Repair or replacement will result dismantling of a vehicle Option 1,2 & 3 Option 1& 2
in improvement in the vehicle. reveals certain defects
which are not directly
connected with the
accident but still will have
to be made good for a
satisfactory repair of
the whole vehicle.

II only I & II only I, II & III I and III only

insurers agree with repairers to insured is informed to Option 1&2 Option 1, 2 & 3
ensure repairs for the insured collect vehicle and pay
vehicles by charging inadmissible the inadmissible cost of
costs only and the admissible repairs like depreciation,
claim costs are paid by Insurance deductible and other
Company directly to the repairer unrelated charges. The
rest of the payment is
made directly by the
insurers to the garage.

Road Wing of the Union Ministry State Government Central Government none of them
of Shipping and Transport
damaged parts for which property remaining after Option 1& 2 Option 1, 2 & 3
replacements have been allowed the insured peril

Systems for storing and retrieving Labour estimates Replacement operations All of them
texts and associated data
and graphics
Surveyor is requested orally or Surveyour is provided a Option 1 & 2 Option 1; 2 & 3
through mail copy of Claim Form to
ascertain date of
registration and Cause of
accident and Estimate of
repairs to decide mode of
settlement.

if a total loss vehicle/ CTL is to be if there is a break in Option 1 & 2 Option 1; 2 & 3
insured insurance before
successive renewal
preparing an outer periphery of Assessment of genuine By ascertaining intrinsic All of them
the damages at the spot and losses by segregating value of salvage and some
furnishing identification marks wear and tear and losses time helping in disposal of
and their correct position caused due to poor salvage to contribute to
upkeep reduction of losses

Physical Cause Environmental Cause Option 1&2 only Option 1,2 & 3 only
Correct Answer Chapter Type
change of tyres of higher Chapter one
capacity
Sections 165 to 176 Chapter one

to all commercial vehicles Chapter two

for standalone third party
insurance

battery powered vehicle Chapter Three

of
power not exceeding
4000 watts having three
wheels for carrying goods
or
passengers,

All of them Chapter Three

in electronic form Chapter Three

Option 1,2,& 3 Chapter Three

Policy does not cover Chapter Three

property held in trust or
in control of the insured
All of them Chapter Three

1&2 both Chapter Four

56 kmph crash test Chapter Four

64 kmph (NCAP standard) Chapter Four

I, II & III Chapter Four

no credit history is Chapter Four

suggestive of single
vehicle owner, who is
financially incapable to
get repairs, may try for
Total Loss or Constructive
Total Loss.

I; II & III only Chapter Four

Insurance scores‘ are used Chapter Four

to evaluate ones past use
of credit to predict how
likely he is to make claims
in the future.

Claims score combines Chapter Four

credit information of
insured and his previous
claims history to predict
future
claims level

Option II; III; and IV Chapter Four

XYZ insurance can reject Chapter Four Indirect

the claim on the basis of
confirmation of previous
insurer about availing
claim in expiring Policy
and is not bound by
Renewal Notice.
transmission of the Chapter Five indirect
impact load, jerk load and
absorption of these load
waves at different points
by the chassis of impact
cling upon the
circumstances of accident,
intensity and structure of
the vehicle

Motor Insurance Policy Chapter Five

does not cover break
down of a part
which was the material
cause of accident. The
claim is payable for
damages to vehicle
excluding the cost of
damaged part

Option I ;II & III Chapter Five Indirect

All of them Chapter Five Indirect

Section 56 of the MV Act Chapter Five Indirect

1988 specifically states
that the Vehicle
registration is invalid
without the ‗Fitness
certificate‘
Option 1,2 & 3 Chapter Five

I, II & III Chapter Five Direct

Option 1, 2 & 3 Chapter Five indirect

Municipal Authorities Chapter Five Direct

damaged parts for which Chapter Five Direct

replacements have been
allowed
All of them Chapter Five Direct

Option 1; 2 & 3 Chapter Five Direct

Option 1; 2 & 3 Chapter Five Direct

All of them Chapter Five Direct

Chapter Five Direct

Option 1,2 & 3 only
Chapter six
Pattern
Evaluation
 Analysis

Analysis

Analysis

Analysis
Analysis
Analysis

Application

Comprehension
Comprehension

Comprehension

Comprehension
Comprehension

Comprehension