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IC 72 – Motor Insurance | III Associateship & Fellowship Exam Prep – Mock Tests, Guide Book, eBook & 9R™ Exam Mastery Study Plan

IC 72 – Motor Insurance | III Associateship & Fellowship Exam Prep 2025

30-Credit Selective Paper | Mock Tests, Guide Book, eBook, Udemy Practice Sets & 9R™ Exam Mastery Study Plan

Prepare confidently for Insurance Institute of India’s IC 72 – Motor Insurance, a valuable 30-credit selective paper for both Associateship and Fellowship pathways. Ideal for insurance professionals, surveyors, loss adjustors, and those building careers in the motor insurance sector. Our preparation suite includes chapter-wise mock tests, 2000+ MCQs, solved papers, Udemy practice sets, and the exclusive 9R™ Exam Mastery Study Plan. Gain deep expertise in underwriting, third-party liability, motor claims management, legal aspects, quantum fixation, IT applications, and post-tariff motor insurance scenarios.

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IC 72 – Motor Insurance | III Associateship & Fellowship Exam 2025 — At a Glance

  • Certification Body: Insurance Institute of India (III)
  • Exam Module: IC 72 – Motor Insurance under III Associateship & Fellowship (30 Credit Points – Selective Paper)
  • Ideal For: Professionals working in motor insurance, claims processing, underwriting, loss adjustment; aspiring surveyors, insurance executives, and career enhancers in motor insurance domain
  • Exam Format: 100 MCQs | 2 Hours | 60% Passing Marks | No Negative Marking
  • Mode of Exam: Online proctored or in-centre exam conducted by III across India
  • Eligibility Criteria: Available to Associate members of III and insurance professionals pursuing Associateship or Fellowship credit accumulation
  • Key Topics Covered: Types of Motor Insurance Policies, Underwriting Practices, Claims Management, Third Party Liability, Consumer Delight & Fraud Management, IT Application in Motor Insurance, Quantum Fixation, Legal Aspects, Post-Tariff Regulatory Changes, and International Legal Framework per III Syllabus Handbook
  • Reference Framework: Based on the official III exam handbook, IRDAI motor insurance updates, and industry best practices in underwriting and claims settlement
  • Frequently Tested Concepts: Motor policy structures, premium computation logic, claims documentation & settlement procedure, consumer redressal obligations, role of surveyors & loss adjusters, and legal case scenarios in motor insurance
  • Popular Queries Covered: “How is third-party premium calculated?”, “What is the procedure to file and defend a motor insurance claim?”, “How are motor insurance surveyor roles evaluated?”, “What legal principles apply in quantum fixation?”
  • Exam Relevance: Best prepared using IC 72 online mock test series, Udemy practice sets, exam guide book, glossary references, and the exclusive 9R™ Study Plan by Gurukul On Road designed for III exam success

Pro Tip: Focus on mastering claims management, underwriting logic, fraud handling, and legal frameworks. Use the 9R™ strategy to map chapterwise MCQs, simulate real exam conditions, and revise with case-based problem-solving.


Available Formats for IC 72 – Motor Insurance | III Associateship & Fellowship Exam Prep

Prepare confidently for IC 72 – Motor Insurance, a strategic 30-credit selective paper under III Associateship & Fellowship tracks, with flexible, exam-aligned study formats. Whether you're a motor insurance underwriter, claims executive, surveyor, or loss adjustor, our content is structured to give you real exam advantage. Access chapter-wise mock tests, 2000+ MCQs via Udemy practice sets, a printed guide book, and an eBook for on-the-go reading. Master key areas like policy types, claim process, legal aspects, third-party liability, fraud management, premium computation, and more — all backed by our exclusive 9R™ Exam Mastery Study Plan.

Choose a Format That Fits Your Study Style for IC 72 – Motor Insurance:

Online Mock Test for IC 72 Motor Insurance Exam
Online Mock Test | IC 72 Motor Insurance III Exam Prep – 2000+ MCQs with Chapterwise Bonus Test & PDF Solutions
 Udemy Practice Test for IC 72 Motor Insurance Exam
Udemy Practice Test | 1000+ MCQs | Timed & Topic-Wise Tests for Motor Insurance Professionals Preparing for III Exams
 Printed Guide Book for IC 72 Motor Insurance
Printed Guide Book | IC 72 Motor Insurance – Chapterwise MCQs, Model Tests & Legal Case MCQs | Free Delivery Available
 eBook for IC 72 Motor Insurance Exam
eBook | IC 72 Motor Insurance – Read on Kindle or Google Play | Complete Exam Guide + Bonus Chapter Mock Test

Printed Guide Book also available on Amazon & Flipkart
eBook version available for Kindle & Google Play Books


Why Choose Our Study Materials for IC 72 – Motor Insurance | III Associateship & Fellowship Exam Prep 2025?

  • IC 72 mock tests strictly follow the official exam pattern and updated syllabus issued by the Insurance Institute of India (III) for this 30-credit selective paper.
  • Covers all essential motor insurance domains including: policy structures, underwriting logic, premium computation, claim processing, fraud management, legal case applications, and post-tariff regulatory framework.
  • Includes over 2000+ IC 72 MCQs with explanations — chapterwise, memory-based, and modeled on actual III exam difficulty levels.
  • Features a real-exam simulated interface with smart tracking of performance across third-party liability, IT applications in insurance, quantum fixation, and international motor law aspects.
  • Available in multiple formats: Online Mock Test, Udemy Practice Sets, Printed Guide Book, eBook — all mapped to our signature 9R™ Exam Mastery Study Plan.
  • Regularly updated with IRDAI circulars and III notifications, transformed into FAQs, glossary terms, and motor insurance scenario-based MCQs via our Update Portal.
  • Helps identify and rectify common errors in motor claim documentation, legal defenses, premium rating mechanisms, and surveyor assessments through real-world exam caselets.
  • Back-tested with III Associateship & Fellowship memory-based questions and validated using IC 72 paper trendlines and examiner feedback from recent sessions.
  • Developed by domain-specific experts in general insurance, claims adjustment, motor underwriting, and insurance law — trusted by working professionals and top scorers across India.

Stay Updated with IRDAI & III Circulars — Aligned for IC 72 Motor Insurance Exam Prep 2025

Regulatory developments play a vital role in shaping the claims process, underwriting norms, third-party liability exposure, premium computation, and motor surveyor protocols tested in the III IC 72 – Motor Insurance exam. At GurukulOnRoad, we continuously track and decode circulars from IRDAI and III to highlight how these impact MCQ framing, mock tests, and exam strategy.

Our editorial summaries convert lengthy circulars into concise insights relevant for surveyors, loss adjustors, underwriters, and motor insurance executives. Updates include changes in third-party claim caps, revised legal obligations, consumer protection provisions, fraud detection norms, and post-tariff motor amendments — all mapped to IC 72 syllabus and updated in the Regulatory Resource Hub.


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III Associateship & Fellowship Exam Prep IC 72 – Motor Insurance 2025 study materials now available in multiple formats.

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Overview & Key Focus Area : IC 72 – Motor Insurance | Chapter-wise Summary | III Associateship & Fellowship Exam Prep 2025

This subject is divided into two key parts: Own Damage Insurance and Motor Third Party Insurance. Each chapter covers crucial operational, legal, and technical aspects of motor insurance and is highly relevant for the 30-credit III Associateship/Fellowship Exam.

Part I – Own Damage Insurance

Chapter 1: Introduction to Motor Insurance

Summary: Evolution, regulatory framework, and types of motor insurance contracts in India. Covers insurable interest, policy structures, and risk transfer mechanisms.

  • Definition and scope of motor insurance
  • Historical background and Motor Vehicles Act basics
  • Types of losses covered
  • IDV (Insured Declared Value) & policy wordings
  • Frequently Asked: What is covered under a comprehensive motor insurance policy?

Chapter 2: Marketing in Motor Insurance

Summary: Principles of marketing, distribution channels, consumer segmentation, motor insurance branding strategies.

  • Marketing mix (4Ps) in insurance
  • Channel-wise benefits
  • Consumer behavior in policy purchase
  • IRDAI’s role in policy promotion compliance
  • Digital insurance marketing MCQs

Chapter 3: Types of Motor Vehicles, Documents & Policies

Summary: Covers vehicle classifications, documents (RC, DL, fitness), and policy options.

  • Policy types: Liability Only, Package, Bundled
  • RC, DL, Fitness Certificate, PUC details
  • Personal vs commercial vehicle usage
  • High MCQ area: Which policy is mandatory for commercial vehicles?

Chapter 4: Underwriting in Motor Insurance

Summary: Underwriting principles, premium computation, vehicle risk assessment, ratings, and discounts.

  • Rating factors: age, zone, IDV
  • Bonus–malus system, anti-theft discounts
  • NCB (No Claim Bonus), premium loading MCQs
  • Critical for: IC-72 premium computation MCQ

Chapter 5: Motor Insurance Claims

Summary: Process of claim intimation, survey, assessment, approval, and settlement timelines (Own Damage claims).

  • Surveyor’s role and timelines
  • Cashless vs reimbursement process
  • Required claim documents
  • Garage tie-ups, digital claim processing
  • Critical for: Motor claim settlement process

Chapter 6: IT Applications in Motor Insurance

Summary: Role of tech in underwriting, issuance, telematics, claims, fraud, and CRM.

  • Digital issuance, claim tracking
  • AI, telematics, RPA in insurance
  • E-Vahan integration
  • MCQ focus: IT supports fraud prevention

Chapter 7: Consumer Delight

Summary: Customer satisfaction, grievance redressal, and policyholder protection.

  • IRDAI’s customer-centric mandates
  • Policy servicing timelines
  • Ombudsman process
  • MCQ key chapter: IC-72 consumer delight chapter

Part II – Motor Third Party Insurance

Chapter 8: Third Party Liability Insurance

Summary: Mandatory TP insurance, policy terms, exclusions, and claim obligations.

  • MV Act Sections 146–160
  • Death vs property liability, statutory limits
  • Third Party vs Own Damage cover
  • High weightage: IC-72 third party insurance questions

Chapter 9: Procedures for Filing and Defending

Summary: Filing claims at MACT, insurer’s defense process.

  • Filing forms, timelines
  • Role of legal departments
  • Document requirements
  • Legal defense, burden of proof
  • MCQ focus: IC-72 filing and defending procedures

Chapter 10: Quantum Fixation

Summary: Courts determine compensation (dependency, disability, age, income).

  • Multiplier method
  • Disability vs death assessment
  • Structured formula
  • Court precedents on compensation
  • Crucial for: Motor Insurance quantum fixation

Chapter 11: Fraud Management and Internal Audit

Summary: Motor insurance fraud types, audits, analytics, and prevention.

  • Staged accidents, inflated claims, forgery
  • Role of audit teams
  • Analytics, red flag indicators
  • Important for: Motor Insurance fraud management

Annexure A: Legal Aspects of Third Party Claims

Summary: Legal framework, case laws, procedures, and insurer liability.

  • Key case law summaries
  • Third party vs contract principles
  • Legal MCQs: Motor Insurance legal aspects

Annexure B: Important Decisions on Motor Vehicle Act

Summary: Landmark court rulings, impact on insurance interpretation.

  • Supreme Court rulings
  • Impact on underwriting and claims
  • MCQ base: real-world claims scenarios

Recommended Strategy for Learners:

  • Start with Chapters 1–4 for solid underwriting & product basics.
  • Prioritize Chapter 5 (Claims) and Chapters 8–10 (Legal/TP Focus) for frequent MCQs.
  • Utilize IC-72 mock tests and bonus MCQ packs for exam simulation.
  • Read the Annexures for application-based and legal MCQs.
  • Track latest IRDAI circulars & updates regularly.

Preparation Guide, Tips, & Study Plan

Preparing for the III IC 72 – Motor Insurance exam requires a strategic approach aligned with regulatory updates, recent amendments, and practical claim/underwriting insights. This 30-credit selective paper is highly relevant for professionals aspiring to grow in the motor insurance domain, surveyor roles, or internal audit functions. Our prep ecosystem includes mock tests, chapterwise notes, printed books, eBooks, and the exclusive 9R™ Exam Mastery Study Plan.

Whether you're looking to practice claim-based MCQs, revise third-party liability rules, or understand post-tariff quantum fixation, the GurukulOnRoad platform helps you build exam confidence with our multi-format offerings. All content is updated with IRDAI circulars, III case scenarios, and mapped to real exam trends.

  1. Download the official IC 72 syllabus from the III portal and mark chapters like Motor Claims, Third Party Procedures, Consumer Delight, Quantum Fixation.
  2. Begin with our chapterwise IC 72 mock test series to reinforce topics like underwriting principles, claim filing, and fraud detection.
  3. Use your performance analytics to focus on weak areas such as premium computation, IT application in claims, and legal responsibilities under Motor Vehicle Act.
  4. Practice full-length timed tests on Udemy or Gurukul to build speed and accuracy across sections like Third Party Liability and Quantum Fixation.
  5. Refer to the Printed Guide Book and eBook for summarized notes, legal MCQs, and key point revision of motor insurance policy types and underwriting criteria.
  6. Stay updated via IRDAI circulars on third-party claim limits, post-tariff rules, surveyor regulations, and motor tribunal decisions.
  7. Request your personalized 9R™ Study Plan to target high-yield chapters like Claims Management, Consumer Delight, Third Party Filing, and Fraud & Audit — critical for application-based MCQs.

Expert Tip: Don’t just revise definitions — practice real-case scenarios and court-based MCQs on legal liability, surveyor actions, and claim dispute resolutions. Our IC 72 Mock Tests and Bonus Revision Packs mirror actual III exam pattern with a focus on exam difficulty and accuracy.




9R Study Plan Framework: Crack IC 72 – Motor Insurance with Confidence

Preparing for the III Exam – IC 72: Motor Insurance on a structured timeline? Our signature 9R™ Exam Mastery Framework is a proven, high-retention study plan curated for insurance professionals, surveyors, loss adjustors, and underwriting aspirants. This 9-step strategy brings focus to chapters like claim filing, third-party procedures, underwriting logic, IT applications, fraud management, and quantum fixation. Whether you’re using our online mock tests, Udemy practice sets, printed guide book, or eBook format — this roadmap prepares you for success with speed and clarity.

  1. R1 – Read: Start with the official III Handbook for IC 72 and map chapters like Own Damage Claims, Third Party Liability, Filing & Defending Procedures, and Fraud Management. Download Latest Handbook 2025.
  2. R2 – Recall: Highlight key terms and definitions: IDV, No Claim Bonus, Section 140/166 of MV Act, policy types, underwriting criteria, surveyor functions.
  3. R3 – Review: Use the IC 72 Printed Guide Book and eBook to review case-based MCQs on legal liability, consumer delight, and claim documentation flow.
  4. R4 – Rehearse: Solve chapter-wise IC 72 mock tests on topics like quantum fixation, IT systems, post-tariff regulation, premium computation.
  5. R5 – Resolve: Use the Gurukul MCQ Bank to strengthen weak zones like fraud detection, legal case MCQs, and third-party tribunal claim settlement rules.
  6. R6 – Revise: Focus 30–45 minutes daily on chapters with high question density: Motor Claims, Consumer Delight, Filing & Defending Procedures, and Legal Aspects. Use our Regulatory Update Blog to stay IRDAI-ready.
  7. R7 – Replicate: Attempt full-length IC 72 mock exams under timed settings to gain confidence across own damage, third party, audit and surveyor MCQs.
  8. R8 – Reflect: Analyze your test dashboard to review incorrect patterns in claim procedure logic, liability defenses, and premium logic gaps.
  9. R9 – Reattempt: Revisit your weak areas using flashcards, glossary recaps, and past-year solved papers — especially for legal judgments, international scenarios, and fraud mitigation rules.

9R™ Exam Mastery Study Plan

This 9-step framework is fine-tuned for the IC 72 syllabus and III Associateship/Fellowship Exam pattern (30-credit selective paper). Whether you're a first-time candidate or a working professional, it pairs seamlessly with our mock test engine, chapter-specific MCQs, legal and regulatory updates, and exam-ready eBooks.



Glossary & Key Definitions for III IC 72 – Motor Insurance | III Associateship & Fellowship Exam Prep 2025

This curated glossary provides high-importance definitions and conceptual clarity for learners preparing for the IC 72 – Motor Insurance paper under the III Associateship & Fellowship Exam. Each term is aligned with the latest Insurance Institute of India (III) exam standards and includes terminology critical for mastering mock tests, printed/eBook guides, and our exclusive 9R™ Exam Mastery Framework. Whether you are using our online mock tests, Udemy practice questions, or printed resources, this glossary will support quick revision, domain understanding, and real-exam application.


  • 1. Motor Insurance: A legal contract providing financial protection to vehicle owners against damages to their vehicles, liability towards third parties, and injuries or death resulting from the use of the insured vehicle.
  • 2. Own Damage (OD) Insurance: Policy cover for loss, damage, or theft of the insured's own vehicle due to events like accidents, fire, natural calamities, vandalism, or theft.
  • 3. Third Party Insurance: Mandatory insurance providing compensation for injury, death, or property damage to a third party caused by the insured vehicle, as per the Motor Vehicles Act.
  • 4. Comprehensive Policy: A combined policy providing both Own Damage and Third Party coverage, often including additional risks like theft, fire, or calamities.
  • 5. Insured Declared Value (IDV): The maximum sum assured, representing the vehicle's market value minus depreciation, payable on total loss or theft.
  • 6. Premium: The amount paid by the insured to the insurer for providing risk coverage during the policy period, based on risk factors like IDV, vehicle age, and type of policy.
  • 7. Deductible (or Excess): The portion of claim amount that the insured must pay out-of-pocket, with the insurer paying the balance as per policy terms.
  • 8. No Claim Bonus (NCB): A discount on the OD premium given at renewal if the insured has not made any claims in the previous policy year.
  • 9. Bonus–Malus System: A system that rewards for claim-free years through bonuses (discounts) and penalizes frequent claims through higher premiums (malus).
  • 10. Rating Factors: Variables such as vehicle age, make/model, location (zone), IDV, and driver profile used by an insurer to determine premium rates.
  • 11. Policyholder: The individual or entity in whose name the policy is issued and who has the legal rights and duties under the contract.
  • 12. Insurable Interest: A financial or legal interest in the insured vehicle that entitles the person to insurance coverage (e.g., owners, lessees, financiers).
  • 13. Proposal Form: A form filled out by the applicant providing essential details needed by the insurer to evaluate and accept the risk for insurance.
  • 14. Underwriting: The process by which the insurer assesses the risk involved in an application and decides terms, premium, or coverage acceptance.
  • 15. Indemnity: The principle that the insurer restores the policyholder to the same financial position as before the loss occurred.
  • 16. Subrogation: The right of an insurer to pursue a third party responsible for an insurance loss to recover the claim amount paid to the insured.
  • 17. Contribution: If more than one policy covers the same risk, the insurers share the liability proportionately as per the terms of their respective policies.
  • 18. Proximate Cause: The most direct and dominant cause of loss based on which insurer’s liability for a claim is determined.
  • 19. Policy Period: The duration for which the insurance contract remains effective, typically stated as “from” and “to” dates.
  • 20. Endorsement: An official modification, addition, or deletion of terms, coverage or details to an insurance policy during its validity.
  • 21. Premium Loading: An additional charge added to the premium because of adverse risk factors like poor claims record or high-risk vehicle usage.
  • 22. Discount: A reduction in insurance premium provided for favorable features such as good driving record, installation of anti-theft devices, or long-term policy.
  • 23. Certificate of Insurance: A statutory document certifying that a vehicle has valid insurance, often required for vehicle registration and use of the vehicle on public roads.
  • 24. Schedule: Part of the policy document listing specifics such as policyholder name, insured vehicle details, scope of cover, and premium amount.
  • 25. Claim: A formal request by the policyholder to the insurer for compensation for a policy-covered loss or damage.
  • 26. Surveyor: A licensed professional appointed by the insurer to evaluate, inspect, and report on the vehicle damage for claim assessment.
  • 27. Cashless Garage: A repair facility in the insurer’s network where the repair bills are settled directly by the insurer with only non-covered charges payable by the insured.
  • 28. Reimbursement Claim: A claim process in which the insured pays for repairs first and later claims reimbursement from the insurer, subject to policy terms.
  • 29. Knock-for-Knock Agreement: An agreement among insurers to settle claims by each insurer paying for damages to its own policyholder, regardless of fault, to speed up settlements.
  • 30. IDV Depreciation Table: A table provided by the regulator prescribing depreciation rates to be applied to the vehicle’s ex-showroom price for calculating IDV by age.
  • 31. Legal Liability: The responsibility placed on a vehicle owner/driver for injury or damage caused to a third party as recognized by law.
  • 32. Personal Accident Cover: Coverage under the motor policy for accidental death or disablement of the insured (owner-driver) when using the insured vehicle.
  • 33. Liability Only Policy: A policy covering only the mandatory legal liability to third parties for injury, death, and property damage, with no cover for own damage.
  • 34. Package Policy: An insurance policy covering both Own Damage and Third Party Liabilities.
  • 35. Bundled Policy: An insurance package combining multiple covers, sometimes mandated for new vehicles (e.g., long-term third-party plus short-term own damage).
  • 36. RC (Registration Certificate): The official document certifying vehicle registration with transport authorities, necessary for legal ownership and insurance processing.
  • 37. Fitness Certificate: A mandatory document for commercial vehicles, certifying roadworthiness and mechanical fitness, often required for insurance coverage.
  • 38. Permit: An authorization issued by transport authorities allowing a vehicle to be used for specified purposes such as goods or passenger transport for hire.
  • 39. Pollution Under Control (PUC) Certificate: Certification that a vehicle’s emissions are within prescribed environmental limits; mandatory for insurance renewal in many states.
  • 40. Ombudsman: A government-appointed authority providing impartial, free mediation for insurance customers’ complaints against insurers.
  • 41. IRDAI (Insurance Regulatory and Development Authority of India): The regulatory body overseeing the conduct and development of insurance market, ensuring policyholder protection and insurer compliance.
  • 42. Motor Vehicles Act (MV Act): The principal legislation governing the operation of motor vehicles, compulsory insurance, and compensation framework for accident victims in India.
  • 43. Section 146 of MV Act: A section that mandates compulsory third-party insurance for all vehicles used in public places in India.
  • 44. MACT (Motor Accident Claims Tribunal): A tribunal set up to adjudicate claims from victims (or legal heirs) arising from road accidents.
  • 45. Multiplier Method: A calculation method used by MACT courts to determine compensation for injury or death, based on age, income, and dependency.
  • 46. Structured Formula: A formula prescribed by law or courts to standardize compensation calculations for motor accident claims.
  • 47. Quantum Fixation: The legal process of determining the amount of compensation payable to accident victims, taking into account age, earning capacity, and nature of injury/death.
  • 48. Staged Accident: A fraudulent act where an accident is deliberately “set up” or faked to claim insurance benefits.
  • 49. Internal Audit: Systematic audit by insurers to review processes, ensure compliance, and detect and prevent fraud in underwriting and claims processing.
  • 50. Red Flags (in Claims Processing): Warning indicators or suspicious patterns suggesting the possibility of fraud or irregularity in a claim.


FAQ: Frequently Asked Questions for III Associateship & Fellowship Exam 2025 – IC 72 – Motor Insurance

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  1. What is Motor Insurance and why is it mandatory in India?
    Motor Insurance provides financial protection against damages to vehicles and liability for third-party injury, death, or property damage. It is mandatory under Section 146 of the Motor Vehicles Act to ensure compensation to accident victims and public safety.
  2. What is the difference between Own Damage (OD) and Third Party Insurance?
    Own Damage (OD) covers loss/damage to the insured’s own vehicle due to accident, theft, fire, etc. Third Party Insurance covers liability towards third-party bodily injury, death, or property damage. OD is optional, but TP is compulsory for all vehicles.
  3. What is a Comprehensive Motor Insurance Policy?
    It is a combined policy that covers both Own Damage and Third Party liabilities, along with additional risks such as theft, fire, natural disasters, and sometimes personal accident cover for the owner-driver.
  4. How is the premium for a motor insurance policy determined?
    Premium is mainly based on rating factors: vehicle type, zone, age, Insured Declared Value (IDV), claim history, usage (personal/commercial), and selected cover. Features like No Claim Bonus, anti-theft devices, and voluntary deductible can reduce premium.
  5. What is Insured Declared Value (IDV) and its significance?
    IDV represents the maximum sum assured for a vehicle, used as the basis for total loss or theft claims. It is calculated as the current market price of the vehicle minus depreciation.
  6. How does the No Claim Bonus (NCB) system work?
    NCB is a discount granted on the renewal premium for claim-free years under OD cover. It can range up to 50% for consecutive claim-free years and is applicable only to the insured, not transferable to a new owner.
  7. What is meant by Policy Endorsement?
    Policy endorsement refers to an amendment or addition to an existing insurance policy. It can be used to add or remove coverage, change personal details, or add special conditions during the policy period.
  8. What documents are required for a valid motor insurance policy?
    Key documents include: completed proposal form, Registration Certificate (RC), Driving License (DL), Pollution Under Control (PUC) Certificate, and, for commercial vehicles, Fitness Certificate and Permit.
  9. What types of vehicles are classified under motor insurance?
    Vehicles are classified as private cars, two-wheelers, commercial vehicles, transport vehicles, and special purpose vehicles, each with specific documentation and rating requirements.
  10. What does the ‘Bonus-Malus’ system mean?
    It is a system that adjusts the premium based on claim history. Claim-free years receive a bonus (discount) while years with claims may result in a malus (increased premium).
  11. What is the claim process for motor insurance?
    The process involves: Intimating the insurer, submitting requisite documents, survey/assessment by an approved surveyor, approval of the estimate, repairs (cashless or reimbursement), and final settlement.
  12. What is the role of a surveyor in motor insurance?
    A surveyor inspects the damaged vehicle, assesses the extent of loss, verifies documents, and submits a report to help the insurer determine claim settlement amount.
  13. How do digital advancements like telematics and e-Vahan impact motor insurance?
    Technology enables online issuance, claim tracking, use of AI in fraud detection, telematics for risk-based premium, and integration of vehicle data with e-Vahan for regulatory compliance.
  14. What is the function of the Insurance Regulatory and Development Authority of India (IRDAI)?
    IRDAI regulates the insurance sector, sets guidelines for policyholder protection, product structure, pricing norms, and grievance redressal procedures.
  15. What is Consumer Delight in the context of motor insurance?
    ‘Consumer Delight’ refers to initiatives ensuring superior customer service, policyholder protection, speedy claim settlement, clear communication, and grievance redressal as mandated by IRDAI.
  16. What is the legal requirement for third party liability insurance?
    Every motor vehicle used in public places must have valid third party liability insurance; failure attracts penalties and denial of claim protection for the owner.
  17. What is the procedure for filing and defending third party claims?
    Claims must be filed before the Motor Accident Claims Tribunal (MACT) with documents like policy copy, FIR, RC, DL, medical/death certificates. Insurers defend using proofs, legal representatives, and by evaluating the merits of the case.
  18. How is compensation (quantum) fixed in motor third party claims?
    Courts use the ‘Multiplier Method’ (based on age, income, and dependency) or ‘structured formula’ to fix compensation for death or permanent disability, referencing Supreme Court precedents for fairness.
  19. What is the difference between cashless and reimbursement claim processes?
    Cashless settlement means the insurer pays the repair garage directly, while in reimbursement, the policyholder pays for repairs and claims later from the insurer following approval.
  20. What are common types of fraud in motor insurance?
    Frauds include staged accidents, inflated claims, document forgery, and misrepresentation. Insurers use audits and analytics to identify and prevent such activities.
  21. What happens if a vehicle does not have a valid Fitness Certificate or PUC?
    The absence of a valid Fitness Certificate (for commercial vehicles) or PUC (for all vehicles) can lead to policy invalidation, denial of claims, or legal penalties.
  22. What does premium loading mean?
    Premium loading is the extra premium charged for high-risk vehicles, adverse claims history, or unfavorable usage, reflecting additional risk for the insurer.
  23. How can a policyholder resolve a dispute or grievance?
    Policyholders can approach the insurer’s grievance cell, escalate to the Insurance Ombudsman, or appeal to consumer courts for unresolved disputes.
  24. What are the main amendments post-tariff in motor insurance?
    After tariff decontrol, insurers can design products, price premiums, and offer innovative covers, subject to IRDAI’s approval. Policy wordings and features must be transparent and consumer-centric.
  25. What are some effective exam preparation strategies for IC-72 Motor Insurance?
    - Study chapter-wise notes and summaries.
    - Practice MCQs using mock tests and previous year/sample papers.
    - Focus on high-weightage areas: Underwriting, Claims, Legal/TP, Quantum Fixation, Fraud Management.
    - Review amendments, legal aspects, and case laws/exam model papers.
    - Use digital resources and online test series for self-assessment.


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