Answer: A. Specified vehicle-related financial losses. Motor policies cover specified losses subject to policy terms.
Which motor cover is legally required in India for public-place use?
A Own-damage cover only
B Third-party liability cover
C Roadside assistance only
D Engine protection only
Answer: B. Third-party liability cover. The Motor Vehicles Act requires compliant third-party insurance for vehicle use in public places, subject to legal exceptions.
Who is a third party in motor insurance?
A The named insurer
B The policy schedule
C Person outside the contract
D The repair garage
Answer: C. Person outside the contract. A third party is someone other than the insurer and insured parties.
What does third-party motor cover primarily address?
A Every repair to own vehicle
B Routine vehicle servicing
C Fuel expenses
D Liability to others
Answer: D. Liability to others. Third-party cover addresses covered liability for injury or damage to others.
What does own-damage cover generally protect?
A Insured vehicle against covered loss
B Every other vehicle
C All medical bills
D Fuel and maintenance
Answer: A. Insured vehicle against covered loss. Own-damage cover can protect the insured vehicle against listed losses.
What is a package motor policy often designed to combine?
A Fuel and maintenance
B Own damage and third-party
C Road tax and registration
D Warranty and servicing
Answer: B. Own damage and third-party. A package policy commonly combines own-damage and third-party sections, subject to its wording.
Does third-party-only cover usually pay for damage to your own car?
A Yes, every repair
B Only after renewal
C No, separate own-damage cover
D Only at network garages
Answer: C. No, separate own-damage cover. Third-party-only cover generally does not insure damage to the insured vehicle.
What is Insured Declared Value, or IDV?
A Annual premium amount
B Repair-shop labor rate
C Third-party claim limit
D Stated vehicle insured value
Answer: D. Stated vehicle insured value. IDV is a policy value used for vehicle coverage calculations, subject to terms.
Why is IDV relevant to a motor policy?
A It affects total-loss settlement basis
B It sets fuel price
C It names beneficiaries
D It records driving hours
Answer: A. It affects total-loss settlement basis. IDV can affect the basis for settlement after total loss or theft.
What is a deductible in motor insurance?
A Vehicle registration fee
B Insured’s share of loss
C Policy start date
D Premium refund
Answer: B. Insured’s share of loss. A deductible or excess is the insured’s share of an eligible claim.
What does depreciation mean in vehicle claims?
A Premium increase after renewal
B Policy extension
C Value reduction over time
D Roadside assistance
Answer: C. Value reduction over time. Depreciation reflects reduction in value and may affect claim settlement under policy terms.
Why check deductible and excess amounts?
A They change vehicle color
B They name the insurer
C They guarantee repairs
D They affect out-of-pocket cost
Answer: D. They affect out-of-pocket cost. The insured may need to pay applicable deductibles or excess.
Which detail should match the vehicle documents?
A Registration and vehicle numbers
B Garage opening hours
C Driver’s favorite route
D Fuel station name
Answer: A. Registration and vehicle numbers. Vehicle identifiers in policy records should match official vehicle documents.
What may affect motor-policy premium?
A Music played while driving
B Vehicle details and coverage
C Garage wall color
D Seat-cover pattern
Answer: B. Vehicle details and coverage. Vehicle characteristics and selected coverage can affect pricing.
Which document commonly confirms motor coverage?
A Fuel receipt
B Repair estimate only
C Policy schedule
D Parking ticket
Answer: C. Policy schedule. The policy schedule summarizes key details of the insurance contract.
What should a driver carry or access as proof of coverage?
A A repair-shop coupon
B An old advertisement
C Another vehicle’s document
D Valid policy details
Answer: D. Valid policy details. Keep access to current policy proof as required locally.
What can a network garage provide?
A Insurer-arranged repair service
B Guaranteed free repairs
C Vehicle registration
D Third-party legal advice
Answer: A. Insurer-arranged repair service. Network garages may support cashless or insurer-coordinated repairs under applicable terms.
Does a network garage guarantee the entire repair bill is covered?
A Yes, all costs
B No, policy terms apply
C Only for older cars
D Only after renewal
Answer: B. No, policy terms apply. Coverage limits, deductibles, exclusions, and approval still apply.
What is a motor insurance claim?
A A vehicle service booking
B A road-tax receipt
C Request for covered loss payment
D A driving test
Answer: C. Request for covered loss payment. A claim asks the insurer to respond to a loss covered by the policy.
What is a sensible first step after an accident?
A Argue about fault
B Leave without checking
C Share passwords
D Ensure safety and seek help
Answer: D. Ensure safety and seek help. Prioritize safety and emergency assistance before insurance steps.
When should an insurer generally be notified after an incident?
A Promptly under policy instructions
B Only at renewal
C After selling the vehicle
D Never
Answer: A. Promptly under policy instructions. Follow the policy’s notification requirements and contact the insurer promptly.
Why document accident details?
A Guarantee claim approval
B Support accurate claim review
C Replace police requirements
D Set future premiums
Answer: B. Support accurate claim review. Accurate records can help the insurer assess a claim.
Which item may be useful after a vehicle accident?
A Unrelated shopping list
B Music playlist
C Photos of damage and scene
D Another person’s policy
Answer: C. Photos of damage and scene. Relevant photos can help document visible damage and circumstances.
Should repair work begin before checking claim instructions?
A Always repair immediately
B Ignore inspection requests
C Change vehicle records
D Ask insurer about process
Answer: D. Ask insurer about process. Check insurer instructions before repair because inspection or approval may be required.
What may an insurer’s surveyor assess?
A Loss and repair damage
B Driver’s employment history
C Fuel quality
D Road tax amount
Answer: A. Loss and repair damage. A surveyor may inspect damage to inform claim assessment.
What does a motor-policy exclusion describe?
A Premium due date
B Loss not covered by contract
C Garage address
D Vehicle registration
Answer: B. Loss not covered by contract. Exclusions identify situations or losses outside the policy’s coverage.
Why read motor-policy exclusions?
A Guarantee claim settlement
B Avoid all deductibles
C Know coverage limits beforehand
D Change traffic laws
Answer: C. Know coverage limits beforehand. The wording explains which circumstances may not be covered.
What should be done with vehicle modifications?
A Hide them from insurer
B Assume coverage expands
C Remove policy documents
D Check insurer notification rules
Answer: D. Check insurer notification rules. Changes can affect underwriting or terms; check the insurer’s process.
Which driver document may be requested in a claim?
A Valid driving licence
B Library card
C Work badge
D Fuel coupon
Answer: A. Valid driving licence. Insurers may request driver and vehicle documents for claim review.
What may be needed for theft claims?
A Only fuel receipts
B Police report and policy documents
C A repair estimate
D Garage membership
Answer: B. Police report and policy documents. Theft claims commonly require official and policy-related documents; exact requirements vary.
What is a total loss in vehicle insurance?
A Any small scratch
B Routine oil change
C Damage beyond repair threshold
D Expired registration
Answer: C. Damage beyond repair threshold. A total loss is assessed under policy definitions and applicable valuation rules.
What is a cashless repair claim?
A All repairs are free
B No policy is needed
C Garage pays the premium
D Insurer settles eligible garage costs
Answer: D. Insurer settles eligible garage costs. Cashless service may settle eligible approved costs with a network garage.
What is a reimbursement repair claim?
A Insured pays then submits expenses
B Insurer repairs without claim
C Garage buys the vehicle
D Policy renews automatically
Answer: A. Insured pays then submits expenses. The insured may pay first and claim eligible costs afterward.
What is a no-claim bonus in many motor products?
A Guaranteed cash payout
B Discount for eligible claim-free period
C Extra vehicle coverage
D Repair-cost refund
Answer: B. Discount for eligible claim-free period. Some products reward eligible claim-free periods with a premium discount.
Can a no-claim bonus usually be assumed transferable?
A Yes, without conditions
B Always transfers to buyer
C Check current policy rules
D It replaces insurance
Answer: C. Check current policy rules. Transferability and conditions depend on applicable rules and insurer procedures.
What can an add-on cover provide?
A Unlimited coverage
B Automatic claim approval
C Free maintenance forever
D Extra specified protection
Answer: D. Extra specified protection. Add-ons extend cover for specific risks under their own conditions.
Does every motor policy include roadside assistance?
A No, it may be optional
B Yes, always
C Only third-party plans
D Only for new cars
Answer: A. No, it may be optional. Roadside assistance may be an add-on or separate service.
Which event might an engine-protection add-on address?
A Every mechanical failure
B Specified engine-related loss
C Routine servicing
D Fuel shortage
Answer: B. Specified engine-related loss. Engine protection is limited to the add-on’s stated conditions.
Why compare add-ons carefully?
A More add-ons always better
B They replace base cover
C Check limits, exclusions, and price
D They guarantee no loss
Answer: C. Check limits, exclusions, and price. Compare each add-on’s coverage, conditions, exclusions, and cost.
What should happen when a motor policy approaches expiry?
A Wait until after an accident
B Cancel without replacement
C Ignore expiry date
D Renew before coverage ends
Answer: D. Renew before coverage ends. Renewing on time helps avoid a coverage gap.
What is a policy lapse?
A Coverage may end
B Claim limit increases
C Deductible disappears
D Vehicle value rises
Answer: A. Coverage may end. A lapse can leave the vehicle without active coverage.
Why compare policy terms at renewal?
A Every policy is identical
B Coverage and costs may differ
C Premiums never change
D Claims become guaranteed
Answer: B. Coverage and costs may differ. Review changes in price, limits, terms, and add-ons at renewal.
How should a damaged vehicle be secured after an incident?
A Leave hazards unmarked
B Drive despite unsafe damage
C Prevent further damage if safe
D Remove identifying parts
Answer: C. Prevent further damage if safe. IRDAI consumer guidance recommends reasonable precautions to prevent further damage.
Where should a motor-policy grievance start?
A Anonymous social account
B Unknown payment link
C Random repair garage
D Insurer’s official complaint channel
Answer: D. Insurer’s official complaint channel. Use the insurer’s documented grievance process first.
Which statement about motor claims is accurate?
A Settlement follows policy terms
B Every loss is paid fully
C All garages are cashless
D Premium guarantees repair
Answer: A. Settlement follows policy terms. Coverage, limits, deductibles, exclusions, and required documents affect settlement.
What should a buyer compare before selecting motor cover?
A Only the premium logo
B Liability, own damage, and terms
C Garage paint color
D Agent’s personal car
Answer: B. Liability, own damage, and terms. Compare cover sections, limits, deductibles, exclusions, and service arrangements.
Why is third-party cover important?
A It pays every own repair
B It replaces road safety
C It addresses liability to others
D It covers routine servicing
Answer: C. It addresses liability to others. Third-party insurance protects against specified liabilities to other people or property.
Which statement about motor insurance law is accurate?
A Requirements are identical worldwide
B Only premiums are regulated
C Policy terms never change
D Rules depend on jurisdiction
Answer: D. Rules depend on jurisdiction. Requirements vary by place; India law governs Indian motor use and insurance.
What should policyholders use for claim instructions?
A Current insurer guidance
B An outdated social post
C An unknown caller
D A random online form
Answer: A. Current insurer guidance. Use current official insurer instructions because processes and terms can vary.
What is sensible after a vehicle ownership change?
A Assume cover transfers automatically
B Notify insurer and check rules
C Ignore policy records
D Share keys with agent
Answer: B. Notify insurer and check rules. Ownership changes can affect policy records; confirm the insurer’s process and local requirements.