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IRDAI Surveyor Motor (S-06) study materials
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IRDAI Surveyor Motor (S-06) practice questions

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Question 1Motor Insurance and Loss Assessment (Surveyor S-06)

Under the Motor Vehicles Act, within what period must the insured notify the insurer of an accident involving damage to the vehicle, unless a longer period is permitted by the policy terms?

  1. Only after the repair estimate is finalized
  2. Immediately, and in any case within 48 hours of the occurrence Correct answer.
  3. Within 30 days of the occurrence
  4. Within 7 days of the occurrence

Explanation

Motor policies typically require immediate notice of loss and, in any event, notice within a short defined window such as 48 hours, so that the insurer can arrange inspection and preserve evidence. Delay beyond the stipulated period can prejudice the claim, though courts have held that mere delay without prejudice does not automatically vitiate a claim.

Question 2Motor Insurance and Loss Assessment (Surveyor S-06)

A private car insured under a Package policy suffers damage to its front bumper and headlamp in a collision with a stray animal on a highway. Which section of the policy responds to the own-damage repair cost?

  1. Section I – Loss of or damage to the vehicle insured Correct answer.
  2. The policy does not respond because an animal was involved
  3. Section II – Liability to third parties
  4. Section III – Personal accident cover for owner-driver

Explanation

Section I of a standard Package policy covers accidental loss or damage to the insured vehicle, including collision with an animal. Third-party liability and owner-driver personal accident covers are separate sections addressing different exposures.

Question 3Motor Insurance and Loss Assessment (Surveyor S-06)

In a motor own-damage claim, the term 'betterment' is best described as:

  1. The additional premium charged for a zero-depreciation cover
  2. The salvage value recovered by the insurer after total loss
  3. Deduction of the value of old parts replaced by new parts during repair Correct answer.
  4. The increase in sum insured at each renewal

Explanation

When a damaged old component is replaced with a brand-new one, the insured is placed in a better position than before the loss, so a proportionate deduction for the residual value of the old part is applied. This deduction is called betterment and is separate from depreciation.

Question 4Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor assesses a two-year-old car with a sum insured of ₹6,00,000 on an IDV basis. The repair estimate is ₹1,20,000, of which ₹20,000 relates to plastic parts. If depreciation on plastic parts is 50% and the policy has no zero-depreciation cover, what is the net admissible own-damage amount before any policy excess?

  1. ₹90,000
  2. ₹1,10,000 Correct answer.
  3. ₹1,20,000
  4. ₹1,00,000

Explanation

Depreciation applies only to the plastic parts at 50%, i.e. ₹10,000, while the remaining ₹1,00,000 of metal and labour is admissible in full. Net admissible amount is therefore ₹1,20,000 minus ₹10,000 = ₹1,10,000, before deducting any compulsory or voluntary excess.

Question 5Motor Insurance and Loss Assessment (Surveyor S-06)

The compulsory excess (policy excess) applicable to an own-damage claim under a standard private car package policy is:

  1. A fixed amount stated in the policy schedule, commonly ₹1,000 for private cars Correct answer.
  2. Not applicable to private cars
  3. Always 10% of the IDV
  4. Always 5% of the claim amount

Explanation

Standard motor package policies specify a fixed compulsory excess in the schedule, commonly ₹1,000 for private cars, which is deducted from every own-damage claim. Voluntary excess, if opted for, is deducted in addition to this compulsory amount.

Question 6Motor Insurance and Loss Assessment (Surveyor S-06)

During assessment of a total loss, the surveyor must determine the pre-accident value of the vehicle. Which approach is most consistent with IRDAI-aligned practice for an IDV-based policy?

  1. Adopt the original invoice value less registration charges
  2. Adopt the resale value quoted by any dealer chosen by the insured
  3. Adopt the insured's declared value without any verification
  4. Adopt the IDV as the pre-accident value, subject to verification that it reflects the vehicle's condition and market value Correct answer.

Explanation

Under an IDV-based policy, the IDV fixed at inception is the benchmark pre-accident value, but the surveyor should verify it against the vehicle's age, condition and prevailing market value. Where the IDV is demonstrably inappropriate, the assessed value may be substituted with reasons recorded.

Question 7Motor Insurance and Loss Assessment (Surveyor S-06)

A vehicle is assessed as a constructive total loss where repair cost is ₹4,50,000 and IDV is ₹4,00,000. The salvage is valued at ₹40,000. What is the net liability of the insurer before excess, if the insured opts to retain the salvage?

  1. ₹3,20,000
  2. ₹3,60,000 Correct answer.
  3. ₹4,50,000
  4. ₹4,00,000

Explanation

Where repair cost exceeds IDV, the claim is settled on IDV basis; if the insured retains the salvage, its value is deducted from the IDV. Hence ₹4,00,000 minus ₹40,000 = ₹3,60,000, before applying any excess.

Question 8Motor Insurance and Loss Assessment (Surveyor S-06)

Which document is most critical for a surveyor to verify the identity and registration particulars of the vehicle in an own-damage claim?

  1. Driving licence of the insured only
  2. Pollution under control certificate
  3. Registration certificate and a matching chassis/engine number verification Correct answer.
  4. Income tax return of the insured

Explanation

The registration certificate establishes the vehicle's identity, ownership and registration details, and the surveyor must physically verify chassis and engine numbers against it. This prevents fraudulent claims on non-existent or substituted vehicles.

Question 9Motor Insurance and Loss Assessment (Surveyor S-06)

In a motor claim, the doctrine of 'proximate cause' requires the surveyor to determine:

  1. The most expensive component of the damage
  2. The last event in the sequence leading to the loss
  3. The dominant, effective cause of the loss without which the damage would not have occurred Correct answer.
  4. The insured's intention at the time of the accident

Explanation

Proximate cause is the dominant and effective cause that sets the loss in motion, not merely the last event. Coverage depends on whether that proximate cause is an insured peril, even if other contributing factors exist.

Question 10Motor Insurance and Loss Assessment (Surveyor S-06)

A vehicle insured for private car use is found to have been used as a taxi at the time of the accident. How should the surveyor treat the claim?

  1. Reject the claim outright without any recommendation
  2. Reduce the claim by 10% as a standard penalty
  3. Report the breach of the declared use condition, as the policy may be avoided for material misrepresentation or change in use Correct answer.
  4. Ignore the use and process the claim normally

Explanation

Private car policies are rated on declared use, and use as a taxi is a material change increasing risk. The surveyor should record the breach and recommend to the insurer, which may avoid liability or settle on a different basis as per policy conditions and legal position.

Question 11Motor Insurance and Loss Assessment (Surveyor S-06)

Which of the following is excluded under the standard own-damage section of a motor package policy?

  1. Damage caused while the vehicle was driven by a person without a valid driving licence Correct answer.
  2. Damage due to fire
  3. Accidental damage due to collision with another vehicle
  4. Damage due to lightning

Explanation

Driving by a person without a valid licence is a breach of a fundamental policy condition and is excluded from own-damage cover. Fire, lightning and collision are all insured perils under the package policy.

Question 12Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor finds that a claim for a stolen vehicle is reported three months after the alleged theft. Which action is most appropriate?

  1. Refer the matter to the police without any assessment
  2. Reject the claim solely because of the delay
  3. Settle on IDV without any verification
  4. Record the delay, obtain the FIR and non-trace report, and recommend detailed verification of the circumstances before settlement Correct answer.

Explanation

Delay in reporting theft is a serious red flag but does not by itself extinguish liability; the surveyor must document it, verify the FIR and final non-trace report, and assess genuineness. The recommendation should be evidence-based rather than automatic rejection.

Question 13Motor Insurance and Loss Assessment (Surveyor S-06)

The 'knock-for-knock' arrangement in motor insurance refers to:

  1. A clause excluding liability for third-party property damage
  2. A method of calculating depreciation on parts
  3. A discount given for no-claim bonus
  4. An agreement where insurers settle their own insured's damage and waive recovery against each other Correct answer.

Explanation

Under knock-for-knock, insurers agree to bear their respective insureds' own-damage costs without pursuing subrogation against each other, simplifying settlements. It does not affect the insured's right to claim under their own policy.

Question 14Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor assesses damage to a commercial goods-carrying vehicle. Which additional document is most relevant compared to a private car claim?

  1. Owner's personal accident policy
  2. Insured's school leaving certificate
  3. Goods carriage permit and fitness certificate of the vehicle Correct answer.
  4. Vehicle's audio system warranty

Explanation

Commercial goods vehicles require a valid permit and fitness certificate under motor transport law, and their absence can affect liability. These documents are not relevant to private car claims.

Question 15Motor Insurance and Loss Assessment (Surveyor S-06)

In assessing a claim for damage to the engine due to water ingress while driving through a flooded road, the surveyor must examine:

  1. Only the market value of the engine
  2. Only the insured's driving experience
  3. Only the vehicle's service history
  4. Whether the damage arose from an accidental external event and whether any hydrostatic lock exclusion applies Correct answer.

Explanation

Water ingress can be an accidental external event, but policies may exclude damage from driving through flooded areas or consequential hydrostatic lock damage. The surveyor must establish causation and check specific exclusions before recommending admissibility.

Question 16Motor Insurance and Loss Assessment (Surveyor S-06)

The 'no-claim bonus' in a motor policy is best described as:

  1. A discount on renewal premium earned for claim-free years, as per the prescribed scale Correct answer.
  2. A commission paid to the agent
  3. An additional premium for higher IDV
  4. A refund of excess after claim settlement

Explanation

No-claim bonus is a renewal premium discount granted for each claim-free year, following the scale prescribed under the Motor Vehicles Act and IRDAI norms. It is forfeited in the year a claim is made.

Question 17Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is appointed to assess a claim where the repair invoice appears inflated compared to market rates. The most professional course is to:

  1. Independently verify parts prices and labour rates against standard schedules and record the assessed admissible amount Correct answer.
  2. Accept the invoice as it is since it is from a garage
  3. Reject the claim entirely
  4. Reduce the amount arbitrarily by 20%

Explanation

The surveyor's duty is to assess the reasonable cost of repair, not merely to accept a garage invoice. Independent verification against standard parts and labour schedules, with reasons recorded, supports a defensible assessment.

Question 18Motor Insurance and Loss Assessment (Surveyor S-06)

Under a motor policy, 'salvage' refers to:

  1. The excess deducted from a claim
  2. The amount of premium returned on cancellation
  3. The value of the vehicle at policy inception
  4. The residual value of damaged parts or the wreck after a loss Correct answer.

Explanation

Salvage is the residual value of the damaged vehicle or parts, which the insurer may realise or allow the insured to retain against a deduction. It is distinct from premium refunds, excess and IDV.

Question 19Motor Insurance and Loss Assessment (Surveyor S-06)

A policyholder's car is damaged and repaired at a garage without the insurer's inspection. The surveyor later finds that the repair cost includes items not damaged in the accident. The surveyor should:

  1. Admit the entire invoice since repair is complete
  2. Admit the invoice with a flat 25% deduction
  3. Disallow unrelated items and admit only damage consistent with the accident Correct answer.
  4. Reject the whole claim for want of inspection

Explanation

The surveyor must correlate each repair item with the accident damage and disallow unrelated or pre-existing items. Absence of prior inspection is a procedural issue, not a ground for rejecting genuine damage.

Question 20Motor Insurance and Loss Assessment (Surveyor S-06)

Which of the following best describes the surveyor's duty regarding the 'depreciation' of fibre-glass and rubber parts in a claim without zero-depreciation cover?

  1. Apply no depreciation to these parts
  2. Apply depreciation only if the vehicle is over five years old
  3. Apply the depreciation percentages prescribed in the policy or standard motor tariff practice Correct answer.
  4. Apply depreciation at the same rate as metal parts

Explanation

Depreciation on plastic, fibre-glass and rubber parts is applied at the prescribed rates, which are higher than for metal parts, unless a zero-depreciation add-on is in force. The surveyor must use the policy or standard tariff percentages.

Question 21Motor Insurance and Loss Assessment (Surveyor S-06)

A third-party property damage claim arises from an accident involving the insured vehicle. Under a package policy, the surveyor's role in such a claim is to:

  1. Fix the premium for the next renewal
  2. Determine the insured's no-claim bonus
  3. Assess only the insured's own vehicle damage
  4. Assess the third party's damage and the insured's liability to enable the insurer to settle under Section II Correct answer.

Explanation

For third-party property damage, the surveyor assesses the extent of damage to the third party's property and the insured's liability, so the insurer can settle under Section II within policy limits. Own-damage assessment is a separate exercise.

Question 22Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor notices that the insured vehicle's odometer reading is inconsistent with its age and service records, and the vehicle appears much older than declared. This most likely indicates:

  1. Possible misrepresentation of vehicle particulars affecting IDV and premium Correct answer.
  2. A valid ground for increasing the claim amount
  3. A normal variation requiring no comment
  4. A manufacturing defect

Explanation

Discrepancies in odometer and condition against declared age point to misrepresentation, which can affect IDV, premium and claim admissibility. The surveyor should record the findings with evidence for the insurer's decision.

Question 23Motor Insurance and Loss Assessment (Surveyor S-06)

In a motor own-damage claim, 'subrogation' entitles the insurer, after paying the claim, to:

  1. Recover the excess from the insured
  2. Cancel the policy retrospectively
  3. Increase the IDV for the next renewal
  4. Step into the insured's shoes and recover the loss from the party responsible Correct answer.

Explanation

Subrogation allows the insurer, having indemnified the insured, to pursue recovery from the third party legally liable for the loss. It supports the principle of indemnity by preventing double recovery.

Question 24Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim where the vehicle was damaged in an accident but the driver fled the scene and no FIR was lodged. Which is the most appropriate observation?

  1. Note the absence of FIR and unexplained circumstances as a material deficiency requiring clarification before recommending settlement Correct answer.
  2. Reject the claim outright without inquiry
  3. Settle the claim on the insured's oral statement
  4. Ignore the absence of FIR as it is optional

Explanation

An FIR is strong corroborative evidence in accident claims, and its absence with unexplained circumstances is a material deficiency. The surveyor should seek clarification and record findings rather than ignore or automatically reject.

Question 25Motor Insurance and Loss Assessment (Surveyor S-06)

Under IRDAI norms, a licensed surveyor is required to submit the survey report within how many days of the date of survey, unless extended with reasons?

  1. 60 days
  2. 15 days Correct answer.
  3. 30 days
  4. 45 days

Explanation

IRDAI regulations require the surveyor to submit the survey report within 15 days of the date of survey, with provision for extension in exceptional circumstances with recorded reasons. Timely reporting supports prompt claim settlement.

Question 26Motor Insurance and Loss Assessment (Surveyor S-06)

For a private car own-damage claim, the surveyor applies the standard depreciation scale to painted metal parts. Which factor primarily determines the percentage of depreciation applied?

  1. The make and country of origin of the vehicle
  2. The age of the vehicle from the date of first registration Correct answer.
  3. The number of kilometres run since the last service
  4. The premium paid for the own-damage cover

Explanation

Depreciation on painted and plastic parts in own-damage assessment follows a scale keyed to the age of the vehicle, not to usage since service, brand origin, or premium level. The older the vehicle, the higher the percentage deduction applied to the cost of replacement parts before arriving at the net loss.

Question 27Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is told by the insurer that the claim is registered under a 'package policy'. Which combination of covers does this denote in Indian motor insurance?

  1. Own damage only, with liability bought separately
  2. Personal accident cover for the owner alone
  3. Third-party liability only, as required by the Act
  4. Own damage plus third-party liability in a single policy Correct answer.

Explanation

A package policy bundles the own-damage section with the statutory third-party liability section in one contract. A liability-only policy is the standalone alternative, and personal accident cover for the owner-driver is a component within these covers rather than a definition of the package.

Question 28Motor Insurance and Loss Assessment (Surveyor S-06)

While inspecting a damaged vehicle, the surveyor finds the front bumper, grille and both headlamps broken, but the radiator and engine are intact. Which term best describes the nature of this damage in the report?

  1. Cosmetic and peripheral body damage Correct answer.
  2. Consequential damage from overheating
  3. Total loss of the vehicle
  4. Mechanical damage to the engine assembly

Explanation

Damage confined to bumper, grille and lamps without affecting the radiator or engine is peripheral body damage, typically repaired by replacement of bolt-on parts. It is not mechanical, consequential, or a total loss, and the surveyor should describe it accordingly so the estimate matches the actual harm.

Question 29Motor Insurance and Loss Assessment (Surveyor S-06)

Which statutory document must a surveyor insist on seeing to confirm that the person who reported the accident was authorised to drive the insured vehicle at that time?

  1. The driver's valid driving licence Correct answer.
  2. The vehicle's pollution under control certificate
  3. The garage repair estimate
  4. The insurer's policy schedule

Explanation

A valid driving licence establishes that the person in control of the vehicle held the statutory authority to drive that class of vehicle. The policy schedule identifies the insured and cover, but does not prove who was driving or whether that person was licensed.

Question 30Motor Insurance and Loss Assessment (Surveyor S-06)

During a spot inspection, the surveyor finds that the insured vehicle's registration certificate records a seating capacity of seven, but the policy schedule describes a private car. Which point should the surveyor note in the report?

  1. That the seating capacity matches the private car description and no discrepancy exists
  2. That the registration particulars should be reconciled with the policy description before settlement Correct answer.
  3. That the vehicle is a commercial passenger carrier and the claim is void
  4. That the policy schedule overrides the registration certificate in all cases

Explanation

A seven-seat private car is a normal private vehicle, so there is no misuse; the surveyor should ensure the registration particulars and policy description are consistent and flag any mismatch for the insurer. The registration certificate is the primary identity document, and the policy schedule does not override it.

Question 31Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is asked to assess a claim where the insured's car hit a stray animal on a highway at night. Which principle determines whether the loss falls within the own-damage cover?

  1. The principle of indemnity alone
  2. The doctrine of utmost good faith
  3. The rule of subrogation
  4. The doctrine of proximate cause Correct answer.

Explanation

Proximate cause identifies the dominant, effective cause of the loss, and an accidental collision with an animal is a fortuitous event covered under own damage. Indemnity, subrogation and good faith are related principles but do not answer the question of whether the accident itself is a covered peril.

Question 32Motor Insurance and Loss Assessment (Surveyor S-06)

In a motor own-damage claim, the surveyor's report is primarily addressed to which party?

  1. The insurer Correct answer.
  2. The insured
  3. The repair garage
  4. The Regional Transport Office

Explanation

The surveyor is appointed by and reports to the insurer, assessing the loss and the admissible amount for settlement. The insured and garage may receive copies, but the report's primary purpose is to inform the insurer's claim decision.

Question 33Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor finds that the insured vehicle's tyres were worn beyond the legal limit and contributed to a skid that caused the accident. Which observation is most appropriate for the report?

  1. The claim should be rejected outright by the surveyor
  2. The condition of the tyres should be recorded as a contributory factor for the insurer's consideration Correct answer.
  3. The tyres should be replaced at the insurer's cost as part of the repair estimate
  4. The loss is automatically excluded because tyres are consumables

Explanation

The surveyor records factual findings, including contributory factors such as worn tyres, and leaves the coverage decision to the insurer. The surveyor does not have authority to reject the claim, and tyres are not automatically excluded from the own-damage section.

Question 34Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim for a car damaged by fire in a workshop while it was parked overnight. Which fact is most important to establish before recommending settlement?

  1. Whether the fire was caused by an external event or by the insured's own negligence Correct answer.
  2. Whether the car's fuel tank was full at the time
  3. Whether the insured had washed the car before parking
  4. Whether the workshop held a valid trade licence

Explanation

Fire is a covered peril under own damage, but the surveyor must establish the cause to rule out an excluded cause such as self-ignition due to the insured's own act or an intentional act. The workshop's trade licence and the car's cleanliness or fuel level are secondary to establishing the cause of the fire.

Question 35Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor calculates the repair cost at ₹3,20,000 on an IDV of ₹3,50,000, and the salvage value of the damaged vehicle is ₹40,000. What is the correct treatment under the constructive total loss rule?

  1. Settle the repair cost and ignore the salvage
  2. Repair the vehicle because the repair cost is below the IDV
  3. Treat it as a total loss only if the repair cost exceeds the IDV
  4. Treat it as a total loss because repair cost plus salvage exceeds the IDV Correct answer.

Explanation

Under the constructive total loss test, if the cost of repair plus the salvage value exceeds the IDV, the vehicle is treated as a total loss. Here ₹3,20,000 plus ₹40,000 equals ₹3,60,000, which exceeds the IDV of ₹3,50,000, so total loss treatment applies.

Question 36Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor observes that the damage pattern on the insured vehicle is inconsistent with the described accident: the dents on the left side run in a direction opposite to the claimed impact. What is the most appropriate action?

  1. Reject the claim on the spot as fraudulent
  2. Accept the claim because the insured has reported it in good faith
  3. Increase the depreciation to offset the inconsistency
  4. Record the inconsistency and recommend a detailed investigation before settlement Correct answer.

Explanation

The surveyor's role is to observe, document and report factual inconsistencies so the insurer can investigate further, for example through a re-inspection or statement. The surveyor neither accepts on good faith alone nor rejects on the spot, as the decision rests with the insurer.

Question 37Motor Insurance and Loss Assessment (Surveyor S-06)

An insured's car is damaged in an accident, and the insurer pays the claim. The insurer then recovers the amount from the at-fault third party. Which principle underlies this recovery?

  1. Utmost good faith
  2. Contribution
  3. Average clause
  4. Subrogation Correct answer.

Explanation

Subrogation allows the insurer, having indemnified the insured, to step into the insured's shoes and pursue the party legally liable for the loss. Contribution applies between insurers, good faith governs disclosure, and the average clause addresses under-insurance.

Question 38Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim for a car that was damaged while being driven by a person whose licence had expired two weeks before the accident. How should the surveyor report this finding?

  1. Treat the claim as automatically payable and process the estimate
  2. Recommend cancellation of the policy for all future claims
  3. Ignore it because the licence had been valid earlier
  4. Note the expired licence as a material fact for the insurer's coverage decision Correct answer.

Explanation

Driving with an expired licence is a material fact that may affect the insurer's liability, and the surveyor's duty is to record it accurately for the insurer's decision. The surveyor does not have authority to decide coverage or to cancel the policy.

Question 39Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor finds that a repair estimate includes replacement of a door that shows only minor surface scratches repairable by painting. What is the most appropriate professional response?

  1. Approve the door replacement because the garage has quoted for it
  2. Reject the entire claim as inflated
  3. Recommend repair of the door and disallow the replacement cost Correct answer.
  4. Ask the insured to pay for the door replacement personally

Explanation

The surveyor must assess the actual damage and allow only the reasonable and necessary cost of restoration, so a repairable door should be repaired rather than replaced. Approving unnecessary replacement, rejecting the whole claim, or shifting cost to the insured are all disproportionate responses.

Question 40Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim for a vehicle that was damaged in a collision with a tree while avoiding a stray dog. Which element is essential to establish for the own-damage claim to be admissible?

  1. That the tree was on private property
  2. That the vehicle was being driven below the speed limit
  3. That the insured had reported the accident to the police within 24 hours
  4. That the accident was fortuitous and not an intentional act of the insured Correct answer.

Explanation

Own-damage cover responds to fortuitous accidents, so the surveyor must establish that the loss was accidental rather than intentional. A police report may be required by the policy for certain situations, but it is not the essential element of admissibility for the accident itself.

Question 41Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is appointed to assess a claim on a commercial goods-carrying vehicle that was damaged while carrying an overload. Which factor is most relevant to the assessment?

  1. The overload is irrelevant because the damage was accidental
  2. The overload automatically increases the sum insured
  3. The overload means the surveyor should not inspect the vehicle
  4. The overload may be a breach of the policy condition and should be recorded Correct answer.

Explanation

Carrying an overload may breach a policy condition on fitness and lawful use, so the surveyor must record it as a material fact for the insurer. It does not increase the sum insured, is not irrelevant, and does not relieve the surveyor of the duty to inspect.

Question 42Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim for damage to the vehicle's air-conditioning compressor that occurred after a minor front-end collision. The insured claims the compressor failed because of the collision. Which approach is most appropriate?

  1. Accept the compressor damage as consequential to the collision
  2. Verify whether the compressor damage is causally linked to the collision or is pre-existing wear Correct answer.
  3. Attribute the compressor failure to the insured's failure to service the vehicle
  4. Replace the compressor without further enquiry because it is part of the vehicle

Explanation

The surveyor must establish a causal link between the accident and the damage claimed; a compressor located away from the impact may have failed from wear rather than the collision. Accepting it as consequential without evidence, replacing it blindly, or blaming the insured without evidence are all unsupported.

Question 43Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a total loss where the vehicle is eight years old. Which method is most appropriate for determining the pre-accident value?

  1. The original ex-showroom price of the vehicle
  2. The salvage value plus the repair estimate
  3. The IDV declared in the policy, subject to verification of its reasonableness Correct answer.
  4. The cost of a new vehicle of the same model today

Explanation

For a total loss, the IDV declared in the policy is the starting point for settlement, and the surveyor verifies that it reasonably reflects the pre-accident market value of the vehicle. Ex-showroom price, replacement cost of a new vehicle, and salvage plus repair are not measures of pre-accident value.

Question 44Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor finds that the insured vehicle's engine number does not match the registration certificate. What is the most appropriate action?

  1. Record the mismatch and refer it to the insurer before any settlement Correct answer.
  2. Reject the claim as fraudulent without further enquiry
  3. Proceed with the assessment because the registration number matches
  4. Assume the engine was replaced and ignore the discrepancy

Explanation

A mismatch in the engine number is a material discrepancy that could indicate a substituted vehicle or an unrecorded engine change, so the surveyor must record it and refer it to the insurer. Proceeding, ignoring, or rejecting without enquiry are all improper.

Question 45Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim where the insured's car was damaged by a falling tree branch during a storm. Which cover responds to this loss?

  1. Statutory liability cover
  2. Personal accident cover
  3. Own-damage section Correct answer.
  4. Third-party liability section

Explanation

Damage to the insured vehicle from a natural event such as a falling branch is a fortuitous own-damage loss and is assessed under the own-damage section. Third-party and statutory liability respond to harm caused to others, and personal accident cover responds to bodily injury.

Question 46Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim where the vehicle was damaged in an accident, but the insured had not renewed the policy and the cover had lapsed three days before the accident. What should the surveyor report?

  1. That the insurer should renew the policy retrospectively
  2. That the claim is payable because the lapse was only three days
  3. That the cover had lapsed and the claim is not admissible under the policy Correct answer.
  4. That the policy was in force because renewal is automatic

Explanation

If the policy had lapsed and was not renewed before the accident, there is no cover in force and the claim is not admissible. Renewal is not automatic, a short lapse is still a lapse, and retrospective renewal is not a surveyor's recommendation to make.

Question 47Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim for a vehicle damaged in a collision, and the insurer suspects that the accident was staged. Which combination of findings would most strongly support that suspicion?

  1. A repair estimate from a registered garage and a police report
  2. A single dent on the bumper and a valid driving licence
  3. Damage inconsistent with the reported impact, fresh paint on old dents, and a policy taken shortly before the accident Correct answer.
  4. A vehicle serviced recently and tyres in good condition

Explanation

Staged accidents typically show damage inconsistent with the claimed impact, evidence of pre-existing damage, and a policy purchased shortly before the event. A single dent, a valid licence, a registered garage estimate, recent servicing and good tyres are all normal and do not by themselves suggest staging.

Question 48Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim where the insured's vehicle was damaged while it was being driven by a friend of the insured, who is not named in the policy. Which statement best reflects the surveyor's approach?

  1. The surveyor should check whether the policy permits driving by any licensed person and report the facts Correct answer.
  2. The claim is payable only if the friend pays the excess
  3. The claim is automatically void because the friend is not a named driver
  4. The surveyor should ignore the identity of the driver

Explanation

Many private car policies cover driving by any person holding a valid licence with the insured's permission, so the surveyor must check the policy terms and report the facts rather than assume a breach. The identity of the driver is material and cannot be ignored, and the excess is not shifted to the friend.

Question 49Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim where the vehicle's chassis is bent and the repair requires straightening on a jig, but the garage proposes replacement of the entire chassis. Which approach is most appropriate?

  1. Approve replacement because it is simpler and faster
  2. Reject the claim because the chassis is damaged
  3. Recommend replacement only if the vehicle is more than five years old
  4. Assess whether straightening restores the chassis to a roadworthy condition and allow the more economical safe option Correct answer.

Explanation

The surveyor must allow the reasonable and necessary cost of restoring the vehicle to its pre-accident condition, so a chassis that can be safely straightened on a jig should not be replaced unnecessarily. Simplicity, rejection, or age-based rules are not valid grounds for the decision.

Question 50Motor Insurance and Loss Assessment (Surveyor S-06)

A surveyor is assessing a claim where the insured's vehicle was damaged in a collision, and the surveyor finds that the vehicle had been modified with an aftermarket turbocharger not disclosed to the insurer. What is the most appropriate treatment of the turbocharger in the assessment?

  1. Exclude the undisclosed modification and report it as a material fact Correct answer.
  2. Include the turbocharger in the repair estimate as part of the vehicle
  3. Replace it with an original equipment part at the insurer's cost
  4. Include it only if the insured produces a purchase invoice

Explanation

Undisclosed modifications are material facts that may affect the insurer's liability, and the surveyor should exclude the modification from the admissible repair cost while reporting it. Including it, conditioning it on an invoice, or upgrading it at the insurer's cost would improperly benefit an undisclosed modification.