Test Your Knowledge About Motor Vehicle Act! Trivia Quiz
Motor vehicle accidents cause a lot of death and injury as the day passes and these calls for people to be taught some of the laws governing road transport and operating a moving vehicle. The motor vehicle act was put in place to set standards on vehicles allowed on the road and consequences for some vehicle violations. Test your understanding of the act by taking this test.
Questions and Answers
- 1.
Which of the following makes the contract unenforceable in a Court of Law
- A.
The proposer has committed non-disclosure
- B.
The proposer has committed misrepresentation
- C.
The proposer has given wrong address of property due to a clerical error
- D.
The policy is not stamped as per Indian Stamp Act
Correct Answer
D. The policy is not stamped as per Indian Stamp ActExplanation
The contract may be considered unenforceable in a Court of Law if the policy is not stamped as per the Indian Stamp Act. This act requires certain documents, including contracts, to be stamped to validate their legality. If the policy lacks the necessary stamp, it may be deemed invalid and unenforceable in a court.Rate this question:
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- 2.
Proximate cause has to be selected
- A.
When two or more causes operate simultaneously
- B.
When two or more causes operate one after another
- C.
When insured peril and excluded peril operate together
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "All of the above" because proximate cause can be selected in all of the mentioned scenarios. Proximate cause refers to the event or chain of events that directly leads to a particular outcome. In the given options, when two or more causes operate simultaneously, it is necessary to determine which cause is the proximate cause. Similarly, when causes operate one after another, the proximate cause needs to be identified. Lastly, when an insured peril and an excluded peril operate together, it is crucial to determine the proximate cause to determine coverage. Therefore, in all of these situations, proximate cause has to be selected.Rate this question:
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- 3.
Motor Vehicle’s act 1939 was amended in
- A.
1960 and 1999
- B.
1995 and 2002
- C.
1988 and 1994
- D.
None of the above
Correct Answer
C. 1988 and 1994Explanation
The Motor Vehicle's Act of 1939 was amended in 1988 and 1994.Rate this question:
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- 4.
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
Correct Answer
D. Satisfaction of the awardExplanation
The correct answer is "Satisfaction of the award." This means that before appealing a WC claim under Motor policies, the claimant must first be satisfied with the award they have received. This suggests that they have accepted the decision made by the relevant authority and are content with the compensation they have been granted. Only after this satisfaction can they proceed with the appeal process.Rate this question:
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- 5.
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
Correct Answer
D. Contributory negligenceExplanation
In cases of contributory negligence, where multiple parties are partially responsible for an accident or incident, third party liability can be awarded against more than one insurer. This means that each insurer may be held accountable for a portion of the damages or compensation. This is because contributory negligence recognizes that multiple parties share the blame for the incident, and therefore, multiple insurers may be required to cover the costs.Rate this question:
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- 6.
Driving license 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
Correct Answer
A. TheftExplanation
A driving license is not a material requirement for settling a claim arising out of theft because theft does not involve the operation of a vehicle. Unlike collision or accidents caused by oneself or external means, theft is a criminal act where the ownership or possession of property is unlawfully taken away from its rightful owner. Therefore, having a driving license is not relevant in determining liability or compensation for a theft-related claim.Rate this question:
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- 7.
In a standard “Act Only’ Policy, liability towards damage to the third party is limited to
- A.
Rs.6,000/
- B.
Rs.75,000/
- C.
Rs.1,50,000/
- D.
Unlimited
Correct Answer
D. UnlimitedExplanation
In a standard "Act Only" Policy, the liability towards damage to the third party is unlimited. This means that there is no maximum limit to the amount that will be paid out by the insurance company for damages caused to a third party. This provides comprehensive coverage and ensures that the policyholder is protected financially in the event of a significant claim or lawsuit.Rate this question:
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- 8.
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
Correct Answer
D. Any of the aboveExplanation
The correct answer is "Any of the above" because according to the given information, the application for compensation can be made at the Motor Vehicles Act (MV Act), the place of the accident, the place of insurance, or the place of residence of the claimant. This suggests that the claimant has the flexibility to choose any of these options to submit their application for compensation.Rate this question:
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- 9.
Amount of compensation of Death & Injury under no fault
- A.
25000/40000
- B.
35000/50000
- C.
25000/35000
- D.
50000/25000
Correct Answer
D. 50000/25000Explanation
The correct answer is 50000/25000. This suggests that in the event of death or injury under no fault, the compensation amount would be $50,000 for death and $25,000 for injury.Rate this question:
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- 10.
Which of the following doesn’t 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
Correct Answer
C. Educational qualification of the proposerExplanation
The educational qualification of the proposer does not have a bearing while accepting a motor proposal. This means that the level of education of the person applying for the motor insurance does not affect the decision to accept or reject the proposal. Factors such as moral hazard of the insured, roadworthiness of the vehicle, and anti-theft devices fitted into the vehicle are more relevant in determining whether to accept the motor proposal.Rate this question:
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- 11.
No-Fault liability is governed by which sector of MV Act
- A.
Sec-173
- B.
Sec-160
- C.
Sec-140
- D.
Sec-146
Correct Answer
C. Sec-140Explanation
Section 140 of the Motor Vehicles Act governs the concept of no-fault liability. This section deals with the compensation payable in case of death or permanent disablement of any person caused by a motor vehicle accident. It states that the owner of the vehicle is liable to pay compensation regardless of any fault or negligence on their part. This provision ensures that victims or their families receive compensation promptly without having to go through the process of proving fault or negligence.Rate this question:
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- 12.
Agreed value Policy is given to
- A.
Vehicles not in use
- B.
Scooters with a side car
- C.
Vintage Cars
- D.
Vehicles plying in restricted area
Correct Answer
C. Vintage CarsExplanation
Agreed value policy is given to vintage cars because these cars are considered to have special value due to their age, rarity, and historical significance. The agreed value policy ensures that the vintage car owner will receive a predetermined amount in case of a total loss or theft, which is agreed upon by both the insurer and the policyholder. This type of policy is specifically designed to protect the unique value of vintage cars and provide adequate coverage for their higher potential worth.Rate this question:
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- 13.
If there is a non-disclosure of a material fact due to oversight, the contract becomes
- A.
Void
- B.
Voidable
- C.
Illegal
- D.
Invalid
Correct Answer
B. VoidableExplanation
If there is a non-disclosure of a material fact due to oversight, the contract becomes voidable. This means that although the contract is initially valid, the party who was not aware of the material fact can choose to either affirm the contract or rescind it. The non-disclosure of the material fact gives the affected party the option to cancel the contract if they feel that they have been deceived or if the non-disclosure significantly impacts the terms of the contract.Rate this question:
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- 14.
Transfer of rights and liabilities of an insured to another who has insurable interest
- A.
Consideration
- B.
Subrogation
- C.
Assignment
- D.
Endorsement
Correct Answer
C. AssignmentExplanation
Assignment is the correct answer because it refers to the transfer of rights and liabilities of an insured to another party who has an insurable interest. Assignment allows the insured to transfer their rights and benefits under the insurance policy to someone else, who then becomes the new policyholder. This can be done for various reasons, such as selling the insured property or transferring ownership. By assigning the policy, the insured effectively transfers their rights and obligations to the assignee, who then assumes all the rights and responsibilities associated with the policy.Rate this question:
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- 15.
Which of the following principles prevents an insured from making a profit out of his insurance claims?
- A.
Proximate cause
- B.
Pro-rata average
- C.
Indemnity
- D.
Insurable interest
Correct Answer
C. IndemnityExplanation
The principle of indemnity prevents an insured from making a profit out of their insurance claims. This principle ensures that the insured is compensated for the actual financial loss suffered, rather than being able to profit from the insurance policy. It aims to restore the insured to the same financial position they were in before the loss occurred, without allowing them to gain any additional financial benefit. This principle helps to maintain fairness and prevent moral hazard in insurance transactions.Rate this question:
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- 16.
In which of the following policies, the principle of indemnity is modified
- A.
Fire declaration policy
- B.
Fire loss of profits policy
- C.
Fire reinstatement policy
- D.
Fire floating policy
Correct Answer
C. Fire reinstatement policyExplanation
The principle of indemnity states that an insured person should not profit from an insurance claim but should only be reimbursed for the actual financial loss suffered. In a fire reinstatement policy, the principle of indemnity is modified because the insured is not only reimbursed for the actual loss suffered but also for the cost of reinstating the property to its original state before the fire. This means that the insured can potentially receive more than the actual financial loss, allowing them to fully restore their property.Rate this question:
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- 17.
Which of the following is not a contract of indemnity in the strict sense?
- A.
Mediclaim insurance
- B.
Personal accident insurance
- C.
Burglary insurance
- D.
Fidelity guarantee
Correct Answer
B. Personal accident insuranceExplanation
Personal accident insurance is not a contract of indemnity in the strict sense because it provides a fixed sum of money in case of accidental death or disability, rather than compensating for the actual loss suffered. In other words, it pays a predetermined amount regardless of the actual expenses or damages incurred. On the other hand, contracts of indemnity typically aim to compensate the insured party for the actual financial loss they have suffered due to an insured event.Rate this question:
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- 18.
Insurable interest is not always required at the time of taking the policy.
- A.
Fire
- B.
Marine Cargo
- C.
Marine Hull
- D.
Motor
Correct Answer
B. Marine CargoExplanation
In marine cargo insurance, insurable interest may not always be required at the time of taking the policy because the nature of the cargo being insured is such that it can change ownership multiple times during its transportation. This means that different parties may have an insurable interest in the cargo at different stages of the journey. Therefore, the requirement for insurable interest may be more flexible in marine cargo insurance compared to other types of insurance policies.Rate this question:
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- 19.
The object of the principle of indemnity is to
- A.
Pay the full cost of repairs
- B.
Pay the full cost of replacement
- C.
Pay the cost of reinstatement
- D.
Prevent the insured from making any profit out of his loss
Correct Answer
D. Prevent the insured from making any profit out of his lossExplanation
The principle of indemnity aims to prevent the insured from making any profit out of their loss. This means that the insurance company will only compensate the insured for the actual financial loss suffered, without allowing them to gain any extra money from the claim. The principle ensures that the insured is restored to the same financial position they were in before the loss occurred, without benefiting financially from the insurance policy. This helps maintain fairness and discourages fraudulent claims.Rate this question:
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- 20.
Sum insured under an insurance policy means
- A.
It is the agreed value of subject matter insured
- B.
The amount payable when there is a loss
- C.
The amount on which the premium is calculated
- D.
The maximum limit of liability under the policy
Correct Answer
D. The maximum limit of liability under the policyExplanation
The sum insured under an insurance policy refers to the maximum limit of liability that the insurance company will pay out in the event of a claim. It represents the agreed value of the subject matter insured, and it is the amount on which the premium is calculated. In other words, it is the predetermined amount that the policyholder will receive when there is a loss covered by the policy.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 22, 2023Quiz Edited by
ProProfs Editorial Team -
Jul 02, 2012Quiz Created by
Adlip96
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