So this is how cloth looks in 3ds max
This is ue4 preview.
why isnt it colliding with character??? And also cloth only works in preview if i drag character into scene cloth wont simulate
pls help 
Are you using the ApexCloth plug in for Max or the Cloth tools in UE4.16?
If you are using the in engine tools, look into the PhysicsAsset the character use and see how the capsuleshapes are, they are the ones that generate collision with that system.
If you are using the ApexCloth plugin for Max i cant help you as i am a Maya user and not that experienced with that plugin at all