1. What is the primary purpose of motor vehicle
insurance?
A) To increase
vehicle prices
B) To provide financial protection against accidents and damages
C) To increase government revenue
D) To regulate fuel consumption
Answer: B) To provide financial protection
against accidents and damages
2. Which type of motor vehicle insurance is mandatory in
India?
A) Third-party
insurance
B) Comprehensive insurance
C) Zero depreciation insurance
D) Personal accident cover
Answer: A) Third-party insurance
3. Under which act is motor vehicle insurance mandatory
in India?
A) Motor
Vehicles Act, 1988
B) Road Safety Act, 1999
C) Insurance Regulation Act, 2002
D) National Transport Act, 2010
Answer: A) Motor Vehicles Act, 1988
4. What does third-party insurance cover?
A) Damage to
the insured vehicle
B) Injury or damage to third-party property or persons
C) Personal losses of the vehicle owner
D) Engine protection
Answer: B) Injury or damage to third-party
property or persons
5. Comprehensive motor insurance covers:
A) Only
third-party damages
B) Only damages to the insured vehicle
C) Both third-party damages and own vehicle damages
D) None of the above
Answer: C) Both third-party damages and own
vehicle damages
6. What does "No Claim Bonus" (NCB) mean in
motor insurance?
A) A discount
on premium for not making claims
B) A penalty for not renewing insurance
C) A mandatory government tax
D) A refund policy by insurers
Answer: A) A discount on premium for not
making claims
7. What is the tenure of a long-term third-party
insurance policy for new private cars as per IRDAI guidelines?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
8. What is the purpose of Personal Accident (PA) Cover in
motor insurance?
A) Covers
damage to third-party property
B) Provides financial compensation to the vehicle owner/driver in case of
injury or death
C) Reduces the insurance premium
D) Covers fuel expenses
Answer: B) Provides financial compensation to
the vehicle owner/driver in case of injury or death
9. Which regulatory body governs motor vehicle insurance
in India?
A) SEBI
B) IRDAI
C) RBI
D) NHAI
Answer: B) IRDAI (Insurance Regulatory and
Development Authority of India)
10. If a vehicle owner does not have valid motor
insurance, they can be fined up to:
A) ₹500
B) ₹1000
C) ₹2000 for the first offense and ₹4000 for repeat offenses
D) ₹10,000
Answer: C) ₹2000 for the first offense and
₹4000 for repeat offenses
11. What does "zero depreciation" cover in
motor insurance?
A) Full
coverage for repair costs without considering depreciation
B) Only third-party damages
C) Full refund on insurance cancellation
D) Exemption from road tax
Answer: A) Full coverage for repair costs
without considering depreciation
12. What is "own damage" (OD) cover in a motor
insurance policy?
A) Covers
damages to third-party property
B) Covers damages to the insured vehicle due to accidents, fire, or theft
C) Covers only natural calamities
D) Covers damages caused due to illegal driving
Answer: B) Covers damages to the insured
vehicle due to accidents, fire, or theft
13. What is "deductible" in motor insurance?
A) The discount
given by the insurer
B) The amount the policyholder must pay before the insurance company covers the
remaining expenses
C) A penalty for making frequent claims
D) A tax imposed on insurance companies
Answer: B) The amount the policyholder must
pay before the insurance company covers the remaining expenses
14. In case of a stolen vehicle, what is the claim amount
based on?
A) Original
showroom price
B) Market value at the time of theft
C) The insured declared value (IDV)
D) The cost of a similar new vehicle
Answer: C) The insured declared value (IDV)
15. What is the maximum period within which an accident
claim must be reported to the insurer?
A) 7 days
B) 15 days
C) 30 days
D) As per the policy terms
Answer: D) As per the policy terms
1. What is the primary purpose of fraud detection in
motor insurance?
A) To reduce
the policyholder's premium
B) To prevent insurance companies from losing money due to false claims
C) To increase the number of insurance policies sold
D) To eliminate insurance policies
Answer: B) To prevent insurance companies from
losing money due to false claims
2. Which of the following is considered a common type of
motor insurance fraud?
A) Overstating
the value of a vehicle during a claim
B) Falsifying the accident location
C) Staging an accident
D) All of the above
Answer: D) All of the above
3. What is the role of "claim investigation" in
fraud detection?
A) To pay out the
claims as quickly as possible
B) To verify the authenticity of a claim before approval
C) To increase the claim amount
D) To avoid paying out any claims
Answer: B) To verify the authenticity of a
claim before approval
4. Which of the following methods is commonly used to
detect fraudulent claims in motor insurance?
A) Checking the
claim history of the policyholder
B) Analyzing discrepancies in the accident report
C) Investigating the accident location using GPS data
D) All of the above
Answer: D) All of the above
5. "Staged accidents" in motor insurance fraud
refer to:
A) Genuine
accidents that occur on the road
B) Accidents that are deliberately created to make fraudulent claims
C) Accidents that involve only third-party vehicles
D) Accidents caused by natural calamities
Answer: B) Accidents that are deliberately
created to make fraudulent claims
6. In case of a fraudulent claim, who is generally held
responsible?
A) The
policyholder
B) The insurance company
C) The insurance agent
D) Both the policyholder and the third party involved
Answer: A) The policyholder
7. Which of the following can be an indicator of a
potential fraudulent claim?
A) The claimant
is unwilling to cooperate with the investigation
B) A lack of witness testimony
C) Claims made for damages to an uninsured vehicle
D) All of the above
Answer: D) All of the above
8. What is the role of data analytics in detecting motor
insurance fraud?
A) To track the
policyholder’s driving habits
B) To compare claims data for patterns of suspicious behavior
C) To adjust premiums based on vehicle age
D) To provide weather reports for the claim
Answer: B) To compare claims data for patterns
of suspicious behavior
9. How do fraudulent insurance agents contribute to motor
insurance fraud?
A) By issuing
policies for vehicles that do not exist
B) By altering policy details for personal gains
C) By helping create fake claims
D) All of the above
Answer: D) All of the above
10. What is the consequence for someone caught committing
motor insurance fraud?
A) A warning
from the insurance company
B) A fine and possible legal action
C) Suspension of their driving license
D) Cancellation of their policy with no further consequences
Answer: B) A fine and possible legal action
11. Which of the following is a red flag for motor
insurance fraud?
A) A
policyholder consistently files claims for minor damages
B) An unusually high number of claims within a short period
C) Claims for repairs from unregistered workshops
D) All of the above
Answer: D) All of the above
12. What is the impact of motor insurance fraud on the
industry?
A) It increases
the premiums for honest policyholders
B) It results in lower insurance coverage
C) It reduces insurance policy sales
D) It has no impact on the industry
Answer: A) It increases the premiums for
honest policyholders
13. Which technology is increasingly being used to combat
motor insurance fraud?
A) Blockchain
B) Artificial Intelligence (AI) and Machine Learning (ML)
C) Augmented Reality (AR)
D) None of the above
Answer: B) Artificial Intelligence (AI) and
Machine Learning (ML)
14. What is "claim padding" in motor insurance
fraud?
A) Filing
multiple claims for the same incident
B) Overstating the value of vehicle repairs or damages
C) Deliberately causing an accident
D) Insuring a stolen vehicle
Answer: B) Overstating the value of vehicle
repairs or damages
15. Which legal framework is used to address and prevent
insurance fraud in India?
A) Consumer
Protection Act, 2019
B) Insurance Regulatory and Development Authority of India (IRDAI) Guidelines
C) Indian Penal Code (IPC), sections related to fraud
D) Both B and C
Answer: D) Both B and C
1. What is the first step in the claims process after an
accident?
A) Filing a
report with the police
B) Contacting the insurance company
C) Taking the vehicle to a repair shop
D) Reporting the accident to a third-party insurer
Answer: B) Contacting the insurance company
2. What is required for initiating a motor insurance
claim in case of an accident?
A) Police FIR (First
Information Report)
B) Claim form submission
C) Vehicle inspection report
D) All of the above
Answer: D) All of the above
3. What does the insurance company assess during the
claim process?
A) The severity
of the damage
B) The cause of the accident
C) Whether the policyholder has a valid insurance policy
D) All of the above
Answer: D) All of the above
4. In motor insurance, what is an "insured declared
value" (IDV)?
A) The maximum
amount payable under a policy
B) The total sum insured for repairs
C) The market value of the vehicle at the time of policy issuance
D) The cost of a new replacement vehicle
Answer: C) The market value of the vehicle at
the time of policy issuance
5. If a vehicle is involved in an accident and sustains
damage, which type of inspection is required for the claim process?
A) Police
inspection
B) Physical damage assessment by the insurer
C) Legal review of the accident
D) Vehicle owner's self-inspection
Answer: B) Physical damage assessment by the
insurer
6. What is a "claim settlement" in the context
of motor insurance?
A) The process
of reviewing and approving the claim
B) The final payout made by the insurance company to the policyholder
C) The total repair costs covered by the insurer
D) The premium amount paid by the policyholder
Answer: B) The final payout made by the
insurance company to the policyholder
7. What is "depreciation" in the context of a
motor insurance claim?
A) The
reduction in the vehicle's value over time
B) The additional cost of repair due to delays
C) The penalty for fraudulent claims
D) The cost of labor during repair
Answer: A) The reduction in the vehicle's
value over time
8. In motor insurance, which of the following is
typically covered under "comprehensive insurance"?
A) Damage to
the insured vehicle
B) Damage caused to third-party property or injury
C) Damage caused due to natural calamities
D) All of the above
Answer: D) All of the above
9. What role does the "third-party insurer"
play in motor insurance claims?
A) Settles the
claims for damages caused by third-party accidents
B) Assesses the repair costs for the insured vehicle
C) Provides emergency services after an accident
D) None of the above
Answer: A) Settles the claims for damages
caused by third-party accidents
10. What does "third-party liability" in motor
insurance cover?
A) Only damages
to the insured vehicle
B) Only damages to third-party property or people
C) The insured vehicle and driver’s medical expenses
D) None of the above
Answer: B) Only damages to third-party property
or people
11. When is a motor insurance claim considered
"settled" by the insurer?
A) When the
policyholder pays the premium
B) When the vehicle is repaired
C) When the insurance company compensates the policyholder for damages
D) When the policyholder submits the necessary documents
Answer: C) When the insurance company
compensates the policyholder for damages
12. What is the usual timeline for settling a motor
insurance claim in India?
A) Within 24
hours
B) Within 7 days
C) Within 15 days
D) Within 30 days
Answer: C) Within 15 days
13. What is "excess" or "deductible"
in motor insurance?
A) A refund the
insurer gives to the policyholder
B) A portion of the claim amount that the policyholder must pay before the
insurer covers the remaining cost
C) The total sum insured for the vehicle
D) A penalty for late payment of premiums
Answer: B) A portion of the claim amount that
the policyholder must pay before the insurer covers the remaining cost
14. If the insurer determines that the claim amount is
less than the actual damage, what action can the policyholder take?
A) Reject the
claim and file a lawsuit
B) Accept the reduced amount and repair the vehicle
C) Appeal the decision and provide additional evidence
D) Wait for the insurer to increase the payout
Answer: C) Appeal the decision and provide
additional evidence
15. Which of the following can delay the motor insurance
claim process?
A) Providing
incomplete or inaccurate documentation
B) Delays in accident reporting
C) Failure to cooperate with the insurer’s investigation
D) All of the above
Answer: D) All of the above
1. Which organization regulates the motor insurance
sector in India?
A) Reserve Bank
of India (RBI)
B) Securities and Exchange Board of India (SEBI)
C) Insurance Regulatory and Development Authority of India (IRDAI)
D) National Insurance Corporation of India (NIC)
Answer: C) Insurance Regulatory and
Development Authority of India (IRDAI)
2. According to the Motor Vehicles Act, 1988, which type
of motor vehicle insurance is mandatory for all vehicles?
A)
Comprehensive insurance
B) Third-party liability insurance
C) Own damage insurance
D) Personal accident cover
Answer: B) Third-party liability insurance
3. The Insurance Regulatory and Development Authority of
India (IRDAI) came into existence in which year?
A) 1992
B) 2000
C) 1999
D) 1985
Answer: A) 1992
4. As per the IRDAI guidelines, how long is the
"free-look" period for a motor insurance policy after purchase?
A) 7 days
B) 14 days
C) 21 days
D) 30 days
Answer: B) 14 days
5. The "Insured Declared Value" (IDV) of a
vehicle is determined based on:
A) The current
market value of the vehicle
B) The cost of replacing the vehicle with a new one
C) The policyholder’s declared value
D) The sum insured by the insurer
Answer: A) The current market value of the
vehicle
6. What does the "IRDAI (Motor Insurance)
Regulations" primarily cover?
A) Premium
calculation methods
B) Coverage for vehicles involved in accidents
C) Rules for setting up insurance agencies
D) Guidelines for settling insurance claims
Answer: D) Guidelines for settling insurance
claims
7. What is the maximum penalty for driving a vehicle
without valid insurance under the Motor Vehicles Act, 1988?
A) ₹500
B) ₹1,000
C) ₹2,000
D) ₹5,000
Answer: C) ₹2,000
8. According to IRDAI regulations, how much time does an
insurance company have to settle a motor insurance claim after all required
documents are submitted?
A) 7 days
B) 15 days
C) 30 days
D) 60 days
Answer: C) 30 days
9. Under the IRDAI regulations, which of the following
documents is required to file a motor insurance claim?
A) Police FIR
(First Information Report)
B) Repair bills from an authorized workshop
C) Driving License
D) All of the above
Answer: D) All of the above
10. As per the IRDAI guidelines, when can an insurance
company refuse to renew a motor insurance policy?
A) When the
vehicle has been involved in multiple accidents
B) When the policyholder has a history of late premium payments
C) If the vehicle does not comply with the legal requirements for insurance
D) None of the above
Answer: C) If the vehicle does not comply with
the legal requirements for insurance
11. Which of the following is true regarding the "No
Claim Bonus" (NCB) in motor insurance regulations?
A) NCB is
awarded for every claim made
B) NCB is applicable only on the third-party insurance policy
C) NCB is offered for claim-free years, reducing the renewal premium
D) NCB is mandatory for all policyholders
Answer: C) NCB is offered for claim-free
years, reducing the renewal premium
12. In case of a third-party liability insurance claim,
the maximum liability amount payable by the insurer is determined by:
A) The
policyholder's choice
B) The type of vehicle involved in the accident
C) The court's judgment
D) The IRDAI guidelines
Answer: C) The court's judgment
13. In India, what is the maximum period for which motor
insurance companies can provide long-term third-party insurance for new cars
under the IRDAI guidelines?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
14. Which of the following is an important regulation
under the IRDAI for motor insurance companies regarding claim settlements?
A) Claims must
be settled without discrimination based on the vehicle’s age
B) Claims must be settled within 60 days of submission
C) Insurers must settle claims on the basis of market value, excluding
depreciation
D) Both B and C
Answer: D) Both B and C
15. Under IRDAI guidelines, what should an insurer do if
it rejects a claim?
A) Notify the
policyholder within 30 days of receiving the claim
B) Provide the policyholder with a detailed written explanation for rejection
C) Refund the premium amount to the policyholder
D) All of the above
Answer: B) Provide the policyholder with a
detailed written explanation for rejection
