GROUP 4 - SENIOR

MOTOR INSURANCE TECHNICAL

1. The Insurer can cancel the policy by sending notice of

a. 10 days
b. 15 days
c. 7 days
d. 30 days

2. No claim discount can be allowed provided a fresh policy is obtained within

a. 30 days
b. 180 days
c. 90 days
d. 15 days
of the expiry of the previous policy.

3. The insured may authorize repairs necessitated by damage caused under policy
provided estimated cost of such repairs does not exceed :
a. Rs.1000/-
b. Rs.500/-
c. Rs.250/-
d. Rs.1200/-

4. As regards risk of explosion to be covered, it means :

a. Only Internal
b. Both internal and external
c. Only external explosion
d. Covered only by additional premium

5. Sum Insured of a vehicle is based on :

a. Insured Market value
b. Insured Declared value
c. Insured Draft Value
d. Insured Estimated Value

6. N.C.B. can be given by New Insurer

a. Automatically on the basis of proposal
b. On production of old policy
c. On production of such certificate
d. Given on face value and confirmed later

GIPSA/Trainers Training lli/04/04/07

7. Maximum discount on IMT is
a. Upto 31%
b. Upto 35%
c. Upto 51%
d. Upto 20%

8. T.P. premium on a private car

a. Ceded entirely of G.I.C.
b. Ceded entirely of India Motor Pool
c. Retained by U/W Company
d. Shared by all PSUs

9. T.P. Provision in a claim is kept

a. Present trend of local courts
b. Age factor of deceased
c. Rate of interest prevalent
d. All above factors

10. Section 170 of MV Act relates to :

a. Taking over the Defence of Owner
b. Collision between the claimants
c. Restricting the award to 6,000
d. Right to appeal.

11. What is not required in a Theft Case?

a. D.L.
b. Subrogation Bond
c. F.I.R.
d. F.R.

12. Agreed value Policy is given to :

a. Vintage Cars
b. Vehicles not in use
c. Vehicles plying in restricted area
d. Scooters with a side car.

13. T.P. Insurance was first made mandatory in :

a. India
b. England
c. U.S.A.
d. Soviet Union

14. An MACT case can be filed :

a. In the area of accident
b. Anywhere in India
c. Any place near to U/W Office

GIPSA/Trainers Training lli/04/04/07

 d. At the place where the victim belonged to.

15. Which of the following is incorrect?

a. Insurance of a Motor Vehicle is compulsory
b. Policy can be insured for TP cover only
c. Proposed Form is a part of the policy
d. Wear and tear is covered by a motor policy

16. Which of the following doesnt have a bearing while accepting a motor proposal?
a. Moral hazard of the insured
b. Roadworthiness of the vehicle
c. Educational qualification of the proposer.
d. Anti theft devices fitted into the vehicle.

17. Owner of goods traveling along in a goods vehicle will be treated for the purpose
of claims as :
a. Insured
b. Third Party
c. Gratuitous Passenger
d. Employee

18. Claim Enq. Officer and Claim Settlement Commissions are part of :
a. MACT
b. EST Act
c. Soratium Fund
d. WC Act

19. OD Claim under Comml. Vehicle chemical tanker will be considered if the driver
has :

a. Valid D.L. to drive any vehicle

b. Valid D.L. to drive a tanker
c. Valid D.L. endorsed with handling of hazardous chemicals.
d. Valid D.L. with five years experience in driving a tanker.

20. Our policies are governed by MV Act of

a. 1988/1939
b. 1988
c. 1939
d. 1989

21. No Fault liability is governed by which sector of MV Act :

a. 140
b. 173
c. 146
d. 170

GIPSA/Trainers Training lli/04/04/07

22. Amount of compensation of Death & Injury under no fault :
a. 35000/50000
b. 25000/40000
c. 50000/25000
d. 25000/35000

23. Application for compensation to be made at MV Act :

a. Place of Accident
b. Place of Insurance
c. Place of residence of the claimant
d. Any of the above.

24. The time limit normally allowed for presenting claim petition u/s 166 is :
a. 3 months
b. 6 months
c. 9 months
d. 1 year

25. In respect of TP Claims, the insurance company can repudiate liability

a. Only if it proves that the DL was not valid and the driver was dis-qualified
from having a license on the date of accident.
b. If the driver was in possession of the Learning License
c. If the D.L. had expired
d. None of the above.

26. On the date of accident, the Insured had sold the vehicle and the policy was not
transferred under the circumstances.
a. The Insured Co. can deny TP liability
b. The Insured Co. cannot deny TP liability
c. The Insured Co. can pay OD Claim and deny TP Claim
d. None of the above.

GIPSA/Trainers Training lli/04/04/07

1. What are the underwriting considerations for u/w passenger carrying commercial
vehicles.

Model
Carrying capacity
Permit route
Fleet
Past claim experience
Terrain (Geographical area) where plying
Age / experience of drivers / codunctors
Private / Public
Road worthiness of vehicle / Inspection
PA for passengers
Other Insurances from the same insured
Voluntary excess
Own workshops / access to quality workshops
Member of association / safety equipments.
Owner & driver same.

2. Describe the conciliation process in Motor TP Claims

Identify cases suitable
Admissions of liability Sec 64VB/DL/Permit/FIR/Investigation confirming
Accident / Income / Dependancy / Factor PM Report
Medical Cert. For disability
Age Proof
Advocates recommendation
Moving Court for conciliation
Offer to the claimant
Jaldh Rawat only in injury cases.

GIPSA/Trainers Training lli/04/04/07

 GROUP B

MOTOR INSURANCE

16. Commercial vehicles TP Pool is managed by :

a. GIPSA
b. Head Offices of Individual Company
c. Asian Insurance Congress
d. GIC

17. OD Claims arising out of collision of vehicles are processed on the basis of :
a. Normal claims handling procedure
b. Knock for knock agreement
c. Market Agreement
d. Memorandum of Understanding

18. In a standard Act Only Policy, liability towards damage to third party is
limited to
a. Rs.75000/-
b. Rs.1,50,000/-
c. Rs.6000/-
d. Unlimited

19. Red lining in Motor Insurance means :

a. Scope of the policy
b. Compliance of notice period
c. Timing requirements
d. Geographical limits

20. Driving licence is not a material requirement for settling a claim arising out
of:
a. Theft
b. Collision
c. Accident caused by self
d. Any other accident by external means

21. A third party liability is often awarded against more than one insurer in case of
:
a. Dispute on admissibility of claim
b. Absence of insurance policies
c. Unenforceable policies produced
d. Contributory negligence

GIPSA/Trainers Training lli/04/04/07

 22. By collecting additional premium Rs.25/- to cover the workmen in-charge of
the vehicle, the policy provides an option for preferring a claim under :
a. MV Act only
b. WC Act only
c. Either MV Act or WC Act
d. Common Law

23. Refund of premium on account of double insurance of motor vehicles can be

allowed on pro-rata basis only for the period during which
a. The policy proposed for cancellation is in force
b. The policy not proposed for cancellation is in force
c. Both the policies are in force on the date of cancellation
d. Both the policies are concurrently in force

24. WC Claims under Motor policies can be appealed only after

a. Conditional satisfaction of the order of the labour commissioner
b. Compliance of notice period
c. Approval of competent authority
d. Satisfaction of the award

25. Which of the following statement is correct?

a. Misc. type of vehicles warranting registration as per MC Act can not be
covered under CPM Policy
b. Excess applicable to miscellaneous type of vehicle is 0.5% of IDV subject
to a minimum of Rs.2500/-
c. An ambulance can be insured as a private car.
d. Claims arising out of accident due to overturning of vehicle whilst in
operation as a tool of trade is payable under a standard motor policy.

GIPSA/Trainers Training lli/04/04/07