IRDA Functions and Insurance Councils MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on IRDA Functions and Insurance Councils, a fundamental topic in the field of IC 14 Regulations of Insurance Business. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our IRDA Functions and Insurance Councils MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of IRDA Functions and Insurance Councils mcq questions that explore various aspects of IRDA Functions and Insurance Councils problems. Each MCQ is crafted to challenge your understanding of IRDA Functions and Insurance Councils principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 14 Regulations of Insurance Business tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our IRDA Functions and Insurance Councils MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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IRDA Functions and Insurance Councils MCQs | Page 5 of 12

Discover more Topics under IC 14 Regulations of Insurance Business

Q41.
What directive did IRDA issue in December 2006 regarding motor third party insurance business?

a.

Individual participation for each General Insurer

b.

Collective participation in a pooling arrangement for all General Insurers

c.

Exclusion of General Insurers from motor third party insurance

d.

Mandatory participation for only select General Insurers

Discuss
Answer: (b).Collective participation in a pooling arrangement for all General Insurers Explanation:In December 2006, IRDA issued directions for all General Insurers to collectively participate in a pooling arrangement for sharing motor third party insurance business.
Q42.
Who was nominated by IRDA as the administrator of the pooling arrangement for motor third party insurance business?

a.

General Insurance Council

b.

Motor Third Party Pool Administrator

c.

Insurance Regulatory and Development Authority

d.

General Insurance Corporation

Discuss
Answer: (d).General Insurance Corporation Explanation:IRDA nominated General Insurance Corporation (GIC) as the administrator of the pooling arrangement for motor third party insurance business.
Q43.
When did the Motor Third Party Pool become operational?

a.

December 2006

b.

April 1, 2007

c.

January 1, 2008

d.

October 15, 2006

Discuss
Answer: (b).April 1, 2007 Explanation:The Motor Third Party Pool became operational from April 1, 2007, as per the directive issued by IRDA.
Q44.
What does GIC's share in the pool depend on?

a.

The total motor third party insurance business

b.

Statutory cession received by GIC

c.

Gross Direct Premium underwritten in India

d.

Market share of the total insurance business

Discuss
Answer: (b).Statutory cession received by GIC Explanation:GIC's share in the pool is based on the statutory cession received by it in the motor third party insurance business.
Q45.
Which vehicles does the pool handle under the pooling arrangement?

a.

All vehicles

b.

Private vehicles only

c.

Commercial vehicles covered by policies issued by all general insurers

d.

Two-wheelers only

Discuss
Answer: (c).Commercial vehicles covered by policies issued by all general insurers Explanation:The pool handles only commercial vehicles covered by policies issued by all general insurers under the pooling arrangement.
Q46.
What significant change does Section 140(3) bring to the liability determination in motor vehicle accidents?

a.

Negligence of the owner or user remains the primary factor in determining liability.

b.

No Fault Liability concept is introduced, making the owner or user's negligence irrelevant.

c.

Claimants are required to establish the owner's negligence for liability determination.

d.

No change in the relevance of owner or user's negligence in determining liability.

Discuss
Answer: (b).No Fault Liability concept is introduced, making the owner or user's negligence irrelevant. Explanation:Section 140(3) introduces the No Fault Liability concept, making the negligence of the owner or user irrelevant in determining liability in motor vehicle accidents.
Q47.
What is the compensation amount limit for death under No Fault Liability after the amendment to the Motor Vehicle Act, 1988?

a.

Rs 10,000/-

b.

Rs 25,000/-

c.

Rs 50,000/-

d.

Rs 75,000/-

Discuss
Answer: (c).Rs 50,000/- Explanation:The compensation amount limit for death under No Fault Liability, after the amendment to the Motor Vehicle Act, 1988, is Rs 50,000/-.
Q48.
What is the compensation amount limit for permanent disablement under No Fault Liability after the amendment to the Motor Vehicle Act, 1988?

a.

Rs 5,000/-

b.

Rs 15,000/-

c.

Rs 25,000/-

d.

Rs 50,000/-

Discuss
Answer: (c).Rs 25,000/- Explanation:The compensation amount limit for permanent disablement under No Fault Liability, after the amendment to the Motor Vehicle Act, 1988, is Rs 25,000/-.
Q49.
How is permanent disablement defined under the Motor Vehicle Act, 1988?

a.

Temporary loss of limb function

b.

Temporary loss of consciousness

c.

Permanent privation of the sight of either eye, hearing loss, or permanent impairing of limb or joint function

d.

Temporary disfigurement of the head or face

Discuss
Answer: (c).Permanent privation of the sight of either eye, hearing loss, or permanent impairing of limb or joint function Explanation:Permanent disablement is defined as permanent privation of the sight of either eye, hearing loss, or permanent impairing of limb or joint function under the Motor Vehicle Act, 1988.
Q50.
What happens if the victim proceeds against a wrongdoer on the basis of negligence in suits, and the compensation awarded is higher than the No Fault basis compensation?

a.

No deduction is made, and the victim receives both compensations in full.

b.

The No Fault basis compensation is deducted from the negligence-based compensation.

c.

The negligence-based compensation is reduced to match the No Fault basis compensation.

d.

The victim is not allowed to proceed against a wrongdoer on the basis of negligence.

Discuss
Answer: (b).The No Fault basis compensation is deducted from the negligence-based compensation. Explanation:If compensation awarded on a negligence basis is higher than the No Fault basis compensation, the latter amount will be deducted from the former.
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