Motor interview questions for insurance roles
89 questions from core to advanced: concepts, calculations, whiteboard diagrams, SQL, scenarios and behavioural. Answer out loud first, then reveal the model answer and example. Mark each one practised when you can answer it without looking.
Practised 0 of 89
Explain OD, TP, add-ons and CPA. Which are mandatory?
- OD covers damage to your own vehicle; optional.
- TP covers liability to others; mandatory under the Motor Vehicles Act.
- CPA (₹15 lakh) is mandatory for an individual owner-driver unless they have no licence, another CPA, or a standalone PA of ₹15 lakh+.
- Add-ons extend OD and are optional.
How is IDV calculated for a 26-month-old car with an ex-showroom price of ₹8 lakh?
- 26 months falls in the 2–3 year band → 30% depreciation.
- IDV = 8,00,000 × 0.70 = ₹5,60,000.
- Customer can move it ±15%: ₹4,76,000 to ₹6,44,000 without referral.
Walk me through the premium calculation from IDV to the final amount.
- Basic OD = IDV × tariff rate × (1 − de-tariff discount).
- Add accessories and CNG → subtotal OD; add loadings, subtract discounts.
- Apply NCB on OD before NCB.
- Add TP slab, CNG ₹60, PA passengers, legal liability, CPA; add add-ons.
- Net premium + 18% GST (goods-carriage TP 5%).
What are the current third-party premiums for cars and two-wheelers?
- 2022 Rules, in force since 1 June 2022: car ₹2,094 / ₹3,416 / ₹7,897 for ≤1,000 / ≤1,500 / >1,500 cc.
- Two-wheeler ₹538 / ₹714 / ₹1,366 / ₹2,804.
- A 10–25% hike has been under review but was not gazetted as of October 2026, so rates must be effective-dated in systems.
What happens to NCB on a claim, a break-in, or a change of vehicle?
- Claim → NCB resets to 0 unless NCB protect was bought.
- Break of more than 90 days → NCB lost.
- Selling the vehicle → NCB stays with the owner; an NCB reserving letter transfers it to the new vehicle.
- NCB slabs: 20, 25, 35, 45, 50%.
When is vehicle inspection required?
- Break-in cases.
- Ownership transfer / used vehicle.
- Adding add-ons or a CNG kit not on the previous policy.
- Policy issues only after a Recommended inspection report.
Why must a new car have a 3-year TP and a new two-wheeler a 5-year TP?
- Supreme Court direction in 2018 to raise TP coverage on new vehicles.
- Leads to bundled (1 OD + 3/5 TP) and long-term TP variants, and later SAOD for the OD renewal.
- Systems must check TP validity before selling standalone OD.
How are EVs and hybrids treated in motor rating?
- TP uses kW slabs for EVs (car ≤30 kW ₹1,780).
- Hybrids get 7.5% off TP.
- The old OD tariff has no kW slabs, so insurers file their own EV OD rates; EV add-ons cover battery and charger.
- Goods-carriage EVs have their own GVW TP table.
How is a goods carrying vehicle priced differently from a private car?
- Zones A, B, C (C = rest of India).
- TP by gross vehicle weight: ₹16,049 up to 7.5 t to ₹44,242 above 40 t.
- OD adds ₹27 per 100 kg above 12,000 kg.
- GST: 5% on the TP portion, 18% on the rest since 22 Sep 2025.
What is Pay As You Drive and what data does it need?
- IRDAI allowed PAYD and Pay How You Drive OD add-ons in July 2022.
- Needs odometer or telematics data, driving behaviour scores, consent under DPDP.
- BA work: new rating factors, data ingestion APIs, renewal re-rating logic.
Describe the motor OD claims process.
- FNOL via app or call centre → claim number.
- Surveyor appointed for larger losses; photo-based assessment for small ones.
- Cashless at network garage or reimbursement.
- Depreciation applied unless zero-dep; compulsory deductible deducted.
- Total loss when repair cost exceeds about 75% of IDV; salvage handled by insurer.
How are TP injury and death claims settled, and what changed in 2026?
- Filed at the Motor Accident Claims Tribunal; liability unlimited for bodily injury.
- Insurer pays the award and may recover from the owner if policy conditions were breached.
- A June 2026 Supreme Court ruling recognised the economic value of homemakers' work, raising compensation and TP claim costs without a premium revision.
A customer wants to renew standalone OD, but their long-term TP expired yesterday. What should the system do?
- Standalone OD can only be sold when a valid TP policy exists, so the sale must be blocked.
- Offer a comprehensive policy (OD + TP) instead, and explain why.
- Check TP validity from the previous policy or VAHAN data before showing the SAOD price, not at payment.
ExampleAcceptance criterion: Given TP end date 25 October 2026 and policy start 26 October 2026, When the user selects standalone OD, Then show 'Third-party cover has expired; choose a comprehensive policy' and hide the SAOD option.Two insurers quote very different OD premiums for the same car. Why?
- Each insurer sets its own de-tariff discount on the old tariff rate, based on its claims experience.
- IDV choice differs: one may default to the lowest allowed IDV.
- Add-ons are priced differently, and some bundle them.
- TP is identical everywhere because it is fixed by the 2022 Rules.
ExampleOn the default car, changing the de-tariff discount from 55% to 40% raises basic OD from about ₹8,790 to ₹11,720, while TP stays at ₹3,416.