IC 72 - MOTOR INSURANCE

EXAM
EXAM
 IC 72 – MOTOR INSURANCE
DEMO Q&As

DEMO QUESTIONS IN PDF ( DOWNLOADABLE) FORMAT

Question1 Identify the correct statement(s) with regards to IDP - International Driving Permit.
1. IDP is valid for 2 years
2. IDP is issued by the RTO within whose jurisdiction the applicant resides
3. IDP is used in conjunction with a driving license
(a) Only 1
(b) Only 2
(c) Only 1 and 2
(d) Only 2 and 3
(e) All 1, 2 and 3

Correct Answer Only 2 and 3

Answer IDP (International Driving Permit) is used in conjunction with a driving license and not in
Explanation place of it. It is issued by the RTO within whose jurisdiction the applicant resides. The
validity of this permit is one year.

Question2 What are the conditions for getting a learners license for driving a transport vehicle?
1. The minimum age should be 18 years
2. The minimum age should be 20 years
3. The Person should hold a driving license to drive a light motor vehicle for at least one
year
(a) Only 1
(b) Only 2
(c) Only 1 and 3
(d) Only 2 and 3
(e) Only 3

Correct Answer Only 2 and 3

Answer For obtaining a transport vehicle learners license, the age should be minimum 20 years and
Explanation person holds a driving license to drive a light motor vehicle for at least one year.
 IC 72 – MOTOR INSURANCE
DEMO Q&As

Question3 Which category of motor vehicle is constructed or adapted to carry more than six
passengers, but not more than 12 passengers, excluding the driver, for hire or reward.
(a) Trailer
(b) Private Service Vehicle
(c) Maxi cab
(d) Motor cab
(e) Motor car

Correct Answer Motor cab

Answer Motor cab is the category of motor vehicle constructed or adopted to carry not more than
Explanation six passengers, excluding the driver, for hire or reward.

Question4 Mr. Suresh has availed a No claim bonus protection for his car. What criterion need to be
satisfied to be eligible for the same?
1. No Claim Bonus earned so far is 25% or more
2. Policy is renewed on or before a period of 90 days from expiry
3. Claim made during the policy period is not more than one
(a) Only 1
(b) Only 3
(c) Only 1 and 2
(d) Only 2 and 3
(e) All 1, 2 and 3

Correct Answer Only 1

Answer In order to have the facility of No claim bonus protection for motor car, NCB earned so far
Explanation should be 25% or more. The NCB protection in case of renewal would be done in case
certain other parameters are fulfilled.
 IC 72 – MOTOR INSURANCE
DEMO Q&As

Question5 What is the significance of IDV in motor insurance?

(a) IDV is the replacement cost of the vehicle
(b) IDV is the amount for which the vehicle is insured
(c) IDV is the value which the insurer is ready to reimburse any time
(d) IDV is the premium amount paid during the year
(e) IDV is the recoverable value of the vehicle

Correct Answer IDV is the amount for which the vehicle is insured
Answer Insured Declared Value - IDV is the amount for which the vehicle is insured which is deemed
Explanation to be the Sum Insured for the policy period.

Question6 When does the owner of a motor vehicle, by virtue of his title and possession, has an
insurable interest?
1. At the time of making a claim
2. At the time of taking insurance
3. At the time of renewal of policy
(a) Only 2
(b) Only 3
(c) Both 1 and 2 only
(d) Both 2 and 3 only
(e) All 1 , 2 and 3

Correct Answer All 1 , 2 and 3

Answer The owner of a motor vehicle by virtue of his title and possession has an insurable interest
Explanation & the same must be existing throughout the ownership of the vehicle i.e. ‘At the time of
taking insurance’, At the time of claim’ and ‘At the time of renewal of policy’.
 IC 72 – MOTOR INSURANCE
DEMO Q&As

Question7 With respect to 'Analytics' , which of these statement(s) is/are TRUE?

1. Analytics is used to predict business performance
2. Analytics is based on the knowledge of computer science, statistics and mathematics
3. Analytics is concerned with individual analysis
(a) Only 1
(b) Both 1 and 2
(c) Only 3
(d) Both 2 and 3
(e) All 1, 2 and 3

Correct Answer Both 1 and 2

Answer Analytics is the discovery & communication of meaningful pattern in data. It is based on the
Explanation knowledge of computer science, mathematics and statistics.

Business firms commonly apply analytics to business data to describe, predict and improve
business performance.

Question8 To whom does the 'knock for knock' arrangement in motor insurance industry benefit?
1. The insuring public
2. The insured
3. The insurer
(a) Only 1
(b) Only 2
(c) Only 3
(d) Only 2 and 3
(e) All 1, 2 and 3

Correct Answer All 1, 2 and 3

Answer "Knock for Knock' is an agreement between auto insurers that in event of an accident each
Explanation insurance company will pay for the damage to the vehicle insured with it, without
attempting to establish blame for the accident.
It benefits the insurers as they avoid intercompany litigations. It benefits the insured's
because they recover the claims straightaway from their insurers. It benefits the insuring
public because the reduction in the cost claims is eventually reflected in reduced premiums.
 IC 72 – MOTOR INSURANCE
DEMO Q&As

Question9 Which of the sections are correctly mentioned as per the Motor Vehicle Act 1988?
(a) Section 154A - Compensation under no Fault Liability Section 150 - Compensation under Hit
and Run motor cases
(b) Section 163 - Compensation under no Fault Liability Section 166A - Compensation under Hit
and Run motor cases
(c) Section 140 - Compensation under No Fault Liability Section 161 - Compensation under Hit
and Run motor cases
(d) Section 161 - Compensation under no Fault Liability Section 163A - Compensation under Hit
and Run motor cases
(e) Section 163 - Compensation under no Fault Liability Section 140 - Compensation under Hit
and Run motor cases

Correct Answer Section 140 - Compensation under No Fault Liability Section 161 - Compensation under Hit
and Run motor cases
Answer Section 140 – Compensation under No Fault Liability
Explanation Section 161 - Compensation under Hit and Run motor cases
are the correct Section numbers.

Question10 Mega Light Insurance Company wants to do some research and wishes to know where to
find the right customers and how to identify good customers for target marketing. Which
tool should it use?
(a) Process management
(b) Predictive analysis
(c) Enhance analytics
(d) Data governance
(e) Enterprise intelligence

Correct Answer Predictive analysis

Answer Mega Light Insurance Company has to do ‘Predictive analysis’ to find out the right
Explanation customers and identify good customers under the sub-heading of - ‘Target marketing’.
 IC 72 – MOTOR INSURANCE
DEMO Q&As

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