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The Motor Vehicles Act, 1988 Set -8
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1. Rules may provide for:
a. Removal and safe custody of abandoned vehicles
b. Only vehicle sale
c. Only permits
d. Only registration
2. Rules may regulate:
a. Only fuel
b. Only tyres
c. Installation and use of weighing devices
d. Only engine
3. Rules may include:
a. Only licence
b. Only toll tax
c. Only insurance
d. Maintenance of parking places and fees
4. Rules may prohibit:
a. Driving slowly
b. Driving downhill with gear disengaged
c. Using brakes
d. Using lights
5. Rules may prohibit:
a. Using footpaths by motor vehicles
b. Using roads
c. Using highways
d. Using signals
6. Rules may aim at:
a. Preventing danger or obstruction to traffic
b. Increasing traffic
c. Only revenue
d. Only permits
7. Section 139 of the Motor Vehicles Act, 1988 deals with:
a. Power of Central Government to make rules (international use of vehicles)
b. Grant of permits
c. Suspension of permits
d. Registration of vehicles
8. Central Government may make rules for:
a. Only local transport
b. Temporary taking of vehicles outside India
c. Only permits
d. Only parking
9. Rules may regulate:
a. Temporary use of foreign vehicles in India
b. Only Indian vehicles
c. Only permits
d. Only insurance
10. Rules may prescribe conditions for:
a. Only police
b. Only Indian drivers
c. Persons entering India to drive vehicles
d. Only courts
11. Rules may relate to:
a. Only aviation
b. Only domestic transport
c. Only railways
d. International transport of passengers/goods
12. Rules may include:
a. Entry and exit of drivers and conductors
b. Only vehicle colour
c. Only speed limits
d. Only tyres
13. Rules under this section shall not:
a. Regulate permits
b. Regulate drivers
c. Regulate vehicles
d. Exempt payment of State taxes
14. Certain provisions of the Act shall not apply where:
a. Central rules override them
b. State rules apply
c. Courts decide
d. Police decide
15. Section 140 of the Motor Vehicles Act, 1988 deals with:
a. Liability to pay compensation on no-fault basis
b. Grant of permits
c. Suspension of permits
d. Registration of vehicles
16. Compensation under this section is based on:
a. Fault liability
b. Criminal liability
c. Contract
d. No-fault principle
17. Compensation for death is:
a. ₹10,000
b. ₹50,000
c. ₹25,000
d. ₹20,000
18. Compensation for permanent disablement is:
a. ₹10,000
b. ₹20,000
c. ₹25,000
d. ₹50,000
19. Claimant is required to prove negligence:
a. Always
b. Sometimes
c. Only in court
d. Not required
20. Claim is not defeated by:
a. Court order
b. Police report
c. Insurance
d. Fault of victim
21. Section 141 of the Motor Vehicles Act, 1988 deals with:
a. Other rights to claim compensation
b. Grant of permits
c. Suspension of permits
d. Registration of vehicles
22. Compensation under section 140 is:
a. Final remedy
b. Only remedy
c. In addition to other rights (except section 163A)
d. Not allowed
23. Claim under section 140 shall be:
a. Ignored
b. Delayed
c. Decided last
d. Disposed of first and expeditiously
24. If both no-fault and fault compensation apply:
a. Only fault applies
b. No-fault paid first, balance paid if higher
c. Neither applies
d. Only no-fault applies
25. If no-fault compensation is equal or more than fault compensation:
a. Both paid fully
b. Only fault paid
c. Double payment
d. No additional fault compensation payable
26. Section 142 of the Motor Vehicles Act, 1988 deals with:
a. Permanent disablement
b. Compensation procedure
c. Permit rules
d. Insurance claims
27. Permanent disablement includes:
a. Temporary injury
b. Permanent privation of sight/hearing or member/joint
c. Minor illness
d. Emotional distress
28. Permanent disablement also covers:
a. Fever
b. Fatigue
c. Destruction or permanent impairing of any member/joint
d. Headache
29. Section 143 of the Motor Vehicles Act, 1988 deals with:
a. Driving regulations
b. Permit transfer
c. Speed limits
d. Applicability to claims under Workmen’s Compensation Act, 1923
30. Section 143 applies to:
a. Property disputes
b. Criminal offences
c. Death or permanent disablement claims
d. Taxation matters
31. Section 144 of the Motor Vehicles Act, 1988 deals with:
a. Compensation limits
b. Overriding effect of this Chapter
c. Driving licence rules
d. Registration
32. Section 144 provides that provisions:
a. Apply only in some cases
b. Are optional
c. Apply only with court approval
d. Override other laws and provisions
33. Section 145 of the Motor Vehicles Act, 1988 deals with:
a. Definitions
b. Insurance claims
c. Permit rules
d. Driving regulations
34. “Authorised insurer” means:
a. Any private company
b. Insurer carrying on general insurance under 1972 Act
c. Only foreign insurer
d. Only government officer
35. “Certificate of insurance” includes:
a. Only original certificate
b. Only duplicate copy
c. Cover note complying with prescribed requirements
d. Only policy document
36. “Liability” includes:
a. Only contractual liability
b. Only civil liability
c. Liability under section 140
d. Criminal liability
37. “Property” includes:
a. Only goods
b. Only roads
c. Only vehicles
d. Goods, roads, bridges, trees etc.
38. “Reciprocating country” means:
a. Any foreign country
b. Country notified by Central Government on reciprocity
c. Only neighbouring country
d. Only SAARC country
39. “Third party” includes:
a. Only individuals
b. Only companies
c. Government also
d. Only passengers
40. Section 146 of the Motor Vehicles Act, 1988 deals with:
a. Necessity for insurance against third party risk
b. Registration of vehicles
c. Driving licence
d. Permit rules
41. No person shall use a motor vehicle in a public place without:
a. Permit
b. Registration
c. Policy of insurance complying with this Chapter
d. Fitness certificate
42. Insurance requirement applies to:
a. Only owners
b. Only drivers
c. Only passengers
d. Any person using or allowing use of vehicle
43. For hazardous goods vehicles, additional insurance is required under:
a. Insurance Act
b. Motor Vehicles Act
c. Public Liability Insurance Act, 1991
d. Companies Act
44. A paid driver without knowledge of absence of insurance:
a. Is always liable
b. Is deemed to contravene
c. Is not deemed to contravene
d. Is punished automatically
45. Section 146 does not apply to:
a. Private vehicles
b. Commercial vehicles
c. Government vehicles used for non-commercial purposes
d. Transport vehicles
46. Government may exempt certain authorities if:
a. They apply
b. They pay tax
c. They have permit
d. They maintain a fund to meet third-party liability
47. “Appropriate Government” depends on:
a. Location of vehicle
b. Ownership/control of authority
c. Type of road
d. Type of insurance
48. Section 147 of the Motor Vehicles Act, 1988 deals with:
a. Requirements of policies and limits of liability
b. Registration of vehicles
c. Driving licence
d. Permit rules
49. A valid insurance policy must be issued by:
a. Any person
b. Vehicle owner
c. Authorised insurer
d. Police authority
50. To comply with this Chapter, a policy must:
a. Be oral
b. Be optional
c. Be informal
d. Fulfil prescribed statutory requirements
51. “Authorised insurer” refers to:
a. Insurer authorised to carry on general insurance business
b. Government officer
c. Any agent
d. Any private individual
52. A policy under section 147 must insure against:
a. Only theft
b. Only fire
c. Only mechanical failure
d. Death or bodily injury to any person or damage to third party property
53. Insurance must cover passengers in:
a. Private vehicle only
b. Goods vehicle
c. Public service vehicle
d. Agricultural vehicle
54. Policy is not required to cover:
a. Third party injury
b. Contractual liability
c. Passenger injury
d. Property damage
55. Employer’s liability for employee injury is covered only under:
a. IPC
b. Contract Act
c. Workmen’s Compensation Act, 1923
d. Evidence Act
56. Third party damage to property is covered up to:
a. ₹6,000
b. ₹3,000
c. ₹10,000
d. Unlimited
57. A policy becomes valid only when:
a. Premium is paid
b. Vehicle is registered
c. Certificate of insurance is issued
d. Permit is granted
58. If a cover note is not followed by policy, insurer must inform:
a. Court
b. Police
c. Owner
d. Registering authority
59. Insurer is liable to:
a. Ignore claims
b. Pay only partial claims
c. Indemnify insured as per policy
d. Pay only court orders
60. Section 148 of the Motor Vehicles Act, 1988 deals with:
a. Validity of insurance policies in reciprocating countries
b. Permit rules
c. Driving licence
d. Registration of vehicles
61. A policy issued in a reciprocating country is valid in India when:
a. It is issued by Indian insurer
b. It complies with Indian law
c. It complies with insurance law of that country
d. It is approved by court
62. Such policy shall be effective:
a. Only in that country
b. Only in India
c. Only in cities
d. Throughout the notified common route/area
63. Validity operates:
a. Ignoring all laws
b. Only under section 147
c. As if it complies with this Chapter
d. Only with court permission
64. Section 149 of the Motor Vehicles Act, 1988 deals with:
a. Duty of insurers to satisfy judgments and awards
b. Registration of vehicles
c. Driving licence
d. Permit rules
65. Insurer must pay when:
a. Policy is cancelled
b. Judgment/award is passed against insured
c. Vehicle is sold
d. Driver is changed
66. Insurer liability exists even if:
a. Premium unpaid
b. Policy avoided or cancelled
c. Driver absconded
d. Vehicle damaged
67. Insurer can defend on ground of:
a. Vehicle colour
b. Fuel type
c. Breach of specified policy conditions
d. Owner’s age
68. Breach includes use of vehicle:
a. On road
b. For personal use
c. For permitted purpose
d. For hire/reward without permit
69. Insurer can avoid liability if policy obtained by:
a. Delay
b. Negligence
c. Non-disclosure of material fact
d. Accident
70. Insurer must have notice of proceedings:
a. After judgment
b. Before execution
c. Before commencement of proceedings
d. After appeal
71. Insurer may recover excess amount from:
a. Court
b. Government
c. Driver
d. Insured person
72. Policy restrictions (beyond permitted conditions) are:
a. Fully valid
b. Partially valid
c. Invalid for required liabilities
d. Optional
73. Insurer cannot avoid liability except:
a. Anytime
b. Arbitrarily
c. As per sub-section (2) grounds
d. By notice
74. Section 150 of the Motor Vehicles Act, 1988 deals with:
a. Rights of third parties against insurers on insolvency of insured
b. Registration of vehicles
c. Driving licence
d. Permit rules
75. On insolvency of insured, rights against insurer:
a. Extinguish
b. Transfer to government
c. Transfer to third party
d. Remain with insured
76. This transfer applies when:
a. Only before insolvency
b. Only after insolvency
c. Only during trial
d. Before or after insolvency event
77. In case of company, transfer applies on:
a. Sale of assets
b. Winding up or appointment of receiver
c. Change of director
d. Audit failure
78. On death of debtor, rights against insurer:
a. End
b. Transfer to creditor/third party
c. Go to government
d. Go to court
79. Policy conditions altering rights on insolvency are:
a. Valid
b. Enforceable
c. Binding
d. Void
80. After transfer, insurer’s liability to third party is:
a. Reduced
b. Same as to insured
c. Eliminated
d. Optional
81. If insurer liability exceeds insured’s liability:
a. Third party gets full amount
b. Government gets excess
c. Insured retains right to excess
d. Court decides
82. If insurer liability is less than insured’s liability:
a. Third party loses claim
b. Insured is not liable
c. Government pays balance
d. Third party can claim balance from insured
83. Section 151 of the Motor Vehicles Act, 1988 deals with:
a. Duty to give information as to insurance
b. Registration of vehicles
c. Driving licence
d. Permit rules
84. A person against whom a claim is made shall:
a. Refuse information
b. Delay response
c. Deny liability
d. Disclose whether he was insured
85. Such person must also provide:
a. Only verbal info
b. No details
c. Policy particulars as in certificate
d. Court documents
86. Duty to give information also applies in case of:
a. Marriage
b. Sale of vehicle
c. Insolvency or winding up
d. Change of address
87. Persons bound to give information include:
a. Only driver
b. Only owner
c. Only insurer
d. Liquidator, receiver, trustee etc.
88. Policy terms preventing disclosure of such information are:
a. Valid
b. Binding
c. Optional
d. Void
89. If insurer is identified, it must:
a. Refuse
b. Delay
c. Follow same duty of disclosure
d. Go to court
90. Duty to give information includes:
a. Oral statement only
b. Written statement only
c. Court affidavit
d. Allow inspection of documents and copies
91. Section 152 of the Motor Vehicles Act, 1988 deals with:
a. Settlement between insurers and insured persons
b. Registration of vehicles
c. Driving licence
d. Permit rules
92. A settlement by insurer regarding third party claim is valid only if:
a. Court approves
b. Insured agrees
c. Third party is a party to settlement
d. Police approves
93. Settlement without involving third party is:
a. Valid
b. Binding
c. Enforceable
d. Invalid
94. After insolvency of insured, agreements with insurer:
a. Override third party rights
b. Are binding on third party
c. Can defeat third party claims
d. Cannot defeat third party rights
95. Post-insolvency waiver or assignment by insured:
a. Is valid
b. Is enforceable
c. Is binding
d. Has no effect on third party rights
96. Rights transferred to third party remain:
a. Modified
b. Reduced
c. Same as if no such agreement existed
d. Cancelled
97. Section 153 of the Motor Vehicles Act, 1988 deals with:
a. Saving in respect of sections 150–152
b. Registration of vehicles
c. Driving licence
d. Permit rules
98. “Liabilities to third parties” does NOT include:
a. Liability as insurer under another policy
b. Liability to passengers
c. Liability to property
d. Liability to public
99. Sections 150–152 do not apply when:
a. Company is insolvent
b. Company is wound up for reconstruction/amalgamation
c. Claim is filed
d. Policy is valid
100. Section 154 of the Motor Vehicles Act, 1988 deals with:
a. Insolvency affecting liability
b. Registration
c. Permits
d. Driving licence
101. Insolvency of insured:
a. Cancels liability
b. Reduces liability
c. Does not affect liability to third parties
d. Transfers liability to court
102. Rights of third parties under sections 150–152:
a. Are removed
b. Are reduced
c. Remain unaffected
d. Are suspended
103. Section 155 of the Motor Vehicles Act, 1988 deals with:
a. Death affecting claims
b. Permits
c. Registration
d. Driving rules
104. Death of insured after accident:
a. Ends claim
b. Bars action
c. Transfers claim to government
d. Does not bar cause of action
105. Claim survives against:
a. Police
b. Court
c. Estate or insurer
d. Driver only
106. Section 156 of the Motor Vehicles Act, 1988 deals with:
a. Effect of certificate of insurance
b. Registration
c. Licence
d. Permit
107. If policy not issued but certificate exists:
a. No liability
b. Certificate invalid
c. Insurer deemed to have issued policy
d. Court decides
108. If policy terms are less favourable than certificate:
a. Policy prevails
b. Certificate ignored
c. Insured decides
d. Certificate terms prevail for third parties
109. Section 157 of the Motor Vehicles Act, 1988 deals with:
a. Transfer of certificate of insurance
b. Registration of vehicles
c. Driving licence
d. Permit rules
110. On transfer of vehicle ownership, insurance:
a. Lapses automatically
b. Remains with transferor
c. Needs court approval
d. Is deemed transferred to transferee
111. Transfer of insurance takes effect from:
a. Date of application
b. Date of policy issue
c. Date of transfer of vehicle
d. Date of registration
112. Deemed transfer includes:
a. Only rights
b. Only liabilities
c. Neither rights nor liabilities
d. Both rights and liabilities
113. Transferee must apply to insurer within:
a. 7 days
b. 10 days
c. 14 days
d. 30 days
114. Application for transfer must be:
a. Oral
b. Informal
c. Through court
d. In prescribed form
115. Section 158 of the Motor Vehicles Act, 1988 deals with:
a. Production of certificates, licence and permit
b. Registration of vehicles
c. Driving licence issue
d. Permit grant
116. A driver must produce documents when required by:
a. Any person
b. Court
c. Police officer in uniform authorised by State Government
d. Owner
117. Documents to be produced include:
a. Only licence
b. Only insurance
c. Only registration
d. Insurance, registration and driving licence
118. In case of transport vehicle, driver must also produce:
a. Tax receipt
b. Pollution certificate
c. Fitness certificate and permit
d. Insurance copy
119. If not produced at accident site, documents must be produced at:
a. Court
b. RTO
c. Owner’s house
d. Police station where report is made
120. No conviction if insurance certificate is produced within:
a. 3 days
b. 5 days
c. 7 days
d. 10 days
121. Owner must provide information to:
a. Court
b. Police officer
c. Driver
d. Insurer
122. “Produce certificate of insurance” means:
a. Submit copy
b. Oral declaration
c. Show any paper
d. Produce certificate or prescribed evidence
123. Police must forward accident report to Claims Tribunal within:
a. 7 days
b. 15 days
c. 30 days
d. 60 days
124. Section 159 of the Motor Vehicles Act, 1988 deals with:
a. Production of certificate of insurance on application for authority to use vehicle
b. Registration of vehicles
c. Driving licence
d. Permit rules
125. State Government may require production of:
a. Tax receipt
b. Pollution certificate
c. Insurance evidence
d. Fitness certificate
126. Requirement applies when applying for:
a. Ownership transfer
b. Driving licence
c. Insurance claim
d. Authority to use vehicle in public place
127. Evidence must show that:
a. Vehicle is registered
b. Driver is licensed
c. Policy of insurance will be in force
d. Tax is paid
128. Alternatively, it may show that:
a. Vehicle is old
b. Vehicle is commercial
c. Vehicle is government owned
d. Section 146 does not apply to vehicle
129. Insurance must be in force for:
a. Past use
b. Future use from date of authority
c. Only owner
d. Only driver
130. Section 160 of the Motor Vehicles Act, 1988 deals with:
a. Duty to furnish particulars of vehicle involved in accident
b. Registration of vehicles
c. Driving licence
d. Permit rules
131. Information must be furnished by:
a. Court
b. Owner
c. Registering authority or officer in charge of police station
d. Driver
132. Information is furnished on request by:
a. Only police
b. Only government
c. Only driver
d. Claimant or insurer
133. Information includes:
a. Only vehicle colour
b. Only driver name
c. Only accident date
d. Identification marks and particulars of vehicle
134. It also includes:
a. Tax details
b. Engine number only
c. Name and address of person using vehicle
d. Permit details only
135. Information is given:
a. Free of cost
b. On court order
c. On oral request
d. On payment of prescribed fee
136. Information must be furnished:
a. Anytime
b. Immediately
c. Within prescribed time and form
d. After trial
137. Section 161 of the Motor Vehicles Act, 1988 deals with:
a. Special provisions for compensation in hit and run accidents
b. Registration of vehicles
c. Driving licence
d. Permit rules
138. “Hit and run motor accident” means:
a. Known vehicle accident
b. Minor accident
c. Accident without injury
d. Accident where vehicle identity cannot be ascertained
139. “Grievous hurt” has meaning as per:
a. CPC
b. CrPC
c. Indian Penal Code
d. Evidence Act
140. Compensation for death in hit and run case is:
a. ₹10,000
b. ₹12,500
c. ₹25,000
d. ₹50,000
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