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Motor Insurance Quiz: 10 Questions on Car and Bike Insurance

Written by the Quizzeela team · Reviewed by Utsav Raj
Last checked · 10 questions · Easy

Every vehicle on Indian roads needs insurance. Check how well you understand your car or bike policy.

Play as a timed quiz and earn coins

1Which motor insurance is compulsory by law in India?

  1. Own-damage cover
  2. Third-party liability cover
  3. Engine protection
  4. Zero depreciation
Show answer
Answer: B. Third-party liability cover. The Motor Vehicles Act makes third-party liability insurance compulsory for every vehicle on public roads.

2A comprehensive policy covers:

  1. Damage to your own vehicle and third-party liability
  2. Only the driver
  3. Only damage to others
  4. Only theft
Show answer
Answer: A. Damage to your own vehicle and third-party liability. Comprehensive cover combines own damage (accident, theft, fire etc.) with third-party liability.

3NCB stands for:

  1. No Claim Bonus
  2. New Car Bonus
  3. Net Cash Back
  4. National Cover Benefit
Show answer
Answer: A. No Claim Bonus. No Claim Bonus is a reward for years in which you made no claim.

4The No Claim Bonus is a discount on:

  1. The own-damage premium
  2. Road tax
  3. Servicing
  4. Fuel
Show answer
Answer: A. The own-damage premium. NCB reduces the own-damage part of your premium at renewal.

5IDV (Insured Declared Value) is roughly:

  1. The road tax paid
  2. The price of a new tyre
  3. The loan amount
  4. The current market value of the vehicle
Show answer
Answer: D. The current market value of the vehicle. IDV is the maximum the insurer pays if the vehicle is stolen or a total loss, based on its current value.

6A "zero depreciation" add-on means:

  1. Your car never loses value
  2. Free fuel
  3. Claims pay for replaced parts without cutting for depreciation
  4. No premium for a year
Show answer
Answer: C. Claims pay for replaced parts without cutting for depreciation. Normally depreciation is deducted on parts. Zero-dep cover pays the full cost of covered parts.

7Driving without valid insurance in India is:

  1. A punishable offence
  2. Allowed on weekends
  3. Allowed for bikes
  4. Only a warning
Show answer
Answer: A. A punishable offence. It is an offence under the Motor Vehicles Act, with fines and other penalties.

8If you sell your car and buy a new one, your NCB:

  1. Goes to the buyer
  2. Is lost forever
  3. Goes to the dealer
  4. Belongs to you and can usually be transferred
Show answer
Answer: D. Belongs to you and can usually be transferred. NCB belongs to the policyholder, not the vehicle, so it can usually move to your next policy.

9A vehicle is called a "total loss" when:

  1. It changes colour
  2. Repairs would cost more than a set share of its value
  3. It is older than one year
  4. It needs a wash
Show answer
Answer: B. Repairs would cost more than a set share of its value. When repair costs pass a limit set in the policy, the insurer settles it as a total loss instead.

10For a vehicle theft claim, you usually need:

  1. A police FIR
  2. A selfie
  3. A fuel receipt
  4. Nothing at all
Show answer
Answer: A. A police FIR. Insurers ask for a First Information Report (FIR) from the police for theft claims.
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Sources: Motor Vehicles Act, 1988 and IRDAI consumer education material. For learning only, not financial, tax or insurance advice. Found a mistake? Use "Report a mistake" in the timed quiz.