IIRM

Post Graduate Diploma in Management (PGDM)

Batch 2020-22
Semester – II
End Term Examinations

Subject: Motor Insurance

Time: 3 Hours Total Marks: 100

PART A
Answer ALL Questions 5 * 10 = 50 Marks

1. Your insurance company is in talks with a large automobile manufacturer for

providing motor insurance across all their showrooms in India. Motor Insurance
policy being a standardized product, motor insurance add-ons are differentiating
factors from the competition. Please write a brief highlighting the following add-on
covers offered by your insurance company:
a. Zero depreciation
b. Return to invoice
c. No claim bonus protection
d. Engine protect

2. Claims for compensation for liability under the Motor Vehicles Act is a civil matter,
the remedy is to file a suit in a civil court. Motor Accidents Claims Tribunals
(MACT) are established for this purpose.

As a legal expert specialized in motor third party claims, you are invited to lecture
students at a premier law college on third party motor insurance claims. What are
the salient points you would touch upon introduction to MACT, who can prefer
compensation in MACT and criteria of quantification of compensation?

3. Having received license to act as a non-life insurer, you are in the process of
establishing motor insurance department. After recruiting fresh candidates from
campus, your training department is designing course modules and material. As a
trainer, in the motor introduction session, what you would indicate the classification
of motor vehicles, types of motor policies, coverages and exclusion of motor package
insurance.

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4. Motor insurance frauds are source of serious revenue leakage for insurance
companies and a conservative estimate puts it at about 10% of claims outgo. Imagine
your insurance company has constituted a task force to suggest ways and means for
reducing frauds in motor insurance, under your leadership. In your introductory
presentation, what salient pints you indicate about the emergence of frauds in motor
insurance?

5. As per IRDA Protection of Policyholders’ Interests) Regulations, 2017, a complainant

who wishes to make a complaint against insurer, intermediary, insurance
intermediary, distribution channel or other regulated entities involved in insurance
sales and services shall approach the respective grievance redressal officer of
insurer.

Where the grievance is not resolved in favour of the policyholder or partially

resolved in favour of the policyholder, the insurer shall inform the complainant of
the option to take up the matter before insurance ombudsman giving details of the
name and address of the Ombudsman of competent jurisdiction.

Thus, the institution of insurance ombudsman was created by the Government of

India for individual policy holders to have their complaints resolved would be of
great help for resolving in a cost-effective, efficient and impartial way.

As an insurer, you are asked to explain the insured, the following points about
insurance ombudsman:

a. What are the typical situations where ombudsman may be approached?

b. What is the procedure to make a complaint?

PART B
Answer All Questions 2 * 25 = 50 Marks

6. BharatBenz is a brand of Daimler India Commercial Vehicles (DICV), itself a wholly

owned subsidiary of the German manufacturer Daimler AG. The BharatBenz brand
offers a range of trucks in all weight categories from 9 to 55 tones, besides school
and tourist buses. BharatBenz trucks and buses are sold and serviced through a pan-
Indian network of more than 222 touch points.

Being a German company and rather new to India, BharatBenz is skeptical about the
motor insurance own damage claims process and procedures as practiced in India.
They have invited you as a head of motor claims of a leading insurance company for
discussions with their technical and insurance divisions. Their questions are
centered around the following:
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a. Motor Insurance claims procedures in India
b. Questions asked in claim form and their significance
c. Documents to be summitted along with the claim form
d. Total loss and salvage loss settlements

Please explain the above in a brief and convincing fashion so that BharatBenz enters into a
long term relationship with your insurance company resulting in a great business.

7. Avis Car Rental and its subsidiaries operate one of the world's best-known car rental
brands with approximately 5,500 locations in more than 165 countries. Avis has a
long history of innovation in the car rental industry and is one of the world's top
brands for customer loyalty. Avis has presence in India, and you will find their
offices in the most important airports, as well as in all major cities and popular
tourist destinations of India.

Avis is looking for relationship with a general insurance company for all their motor
insurance needs. Since they are new to Indian motor insurance products and
practices, they expect the insurance company to educate them in all facets of motor
insurance. Having great experience in motor insurance with net work across all
corners of India, your insurance company is the first choice of Avis.

In their initial meeting on underwriting, officials expressed their concern about the
documentation related to motor insurance in India. Explain how you are going to
enlighten Avis about significance and contents of motor insurance proposal form,
motor policies and certificate of insurance as used and practiced in India.

End of paper

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