Motor Insurance

““MOTOR INSURANCE”MOTOR INSURANCE”

By:R.R.JOSHIBy:R.R.JOSHI

Motor ConstitutesMotor Constitutes40% of Total Premium40% of Total Premium

LEGISLATIVE LEGISLATIVE ENVIRONMENTENVIRONMENT

The Insurance actThe Insurance act

The Motor Vehicle ActThe Motor Vehicle Act

The India Motor TariffThe India Motor Tariff

MOTOR VEHICLE ACT 1988MOTOR VEHICLE ACT 1988

Motor vehicle means any mechanically Motor vehicle means any mechanically propelled vehicle adapted for use upon propelled vehicle adapted for use upon roads whether the power of propulsion roads whether the power of propulsion is transmitted thereto from an external is transmitted thereto from an external or internal source and includes chassis or internal source and includes chassis to which a body has not been attached to which a body has not been attached and a trailer:and a trailer:

THE MOTOR VEHICLE ACT SECT. 146THE MOTOR VEHICLE ACT SECT. 146

No person shall use, except as a passenger, or No person shall use, except as a passenger, or allow any person to use, a motor vehicle in a allow any person to use, a motor vehicle in a public place unless there is in force in relation public place unless there is in force in relation to the use of the vehicle by that person or that to the use of the vehicle by that person or that other person as the case may be, a policy of other person as the case may be, a policy of insurance complying with the requirements of insurance complying with the requirements of this chapter.this chapter.

THIRD PARTY ACT LIABILITIESTHIRD PARTY ACT LIABILITIES

Policy of insurance must be a policy which insures the Policy of insurance must be a policy which insures the person or classes of persons specified in the person or classes of persons specified in the policy against-policy against-

I.I. Any liability incurred by the insured in respect Any liability incurred by the insured in respect of death or bodily injury to of death or bodily injury to ANYANY person person including owner of the goods or his authorized including owner of the goods or his authorized representative carried in the vehiclerepresentative carried in the vehicle

II.II. Liability incurred in respect of damage to any Liability incurred in respect of damage to any property of a third partyproperty of a third party

III.III. Liability incurred in respect of death or bodily Liability incurred in respect of death or bodily injury of any passenger of a public service injury of any passenger of a public service vehicle.vehicle.

THIRD PARTY ACT LIABILITIES (contd..)THIRD PARTY ACT LIABILITIES (contd..)

IV.IV. Liability arising under Workmen’s Compensation Liability arising under Workmen’s Compensation Act, 1923 in respect of death or bodily injury to:-Act, 1923 in respect of death or bodily injury to:-

( a ) Paid driver of the vehicle( a ) Paid driver of the vehicle

( b ) Conductor, or Ticket Examiner (Public ( b ) Conductor, or Ticket Examiner (Public Service Vehicles);Service Vehicles);

( c ) Coolies carried in goods vehicle.( c ) Coolies carried in goods vehicle.

v.v. Liability in respect of death or Liability in respect of death or bodily injury of passengers who are carried for bodily injury of passengers who are carried for hire or reward or by reason of or in pursuance of hire or reward or by reason of or in pursuance of contract of employmentcontract of employment

THIRD PARTY ACT LIABILITIES (contd..)THIRD PARTY ACT LIABILITIES (contd..)

The policy of insurance should cover the The policy of insurance should cover the liability incurred in respect of any one accident liability incurred in respect of any one accident as follows :-as follows :-

(A) (A) In respect of death or bodily injury to In respect of death or bodily injury to any person: the amount of liability any person: the amount of liability incurred ___________(unlimited) incurred ___________(unlimited)

(B) (B) In respect of damage to any property of In respect of damage to any property of third party __________a limit of Rs. 6000/- third party __________a limit of Rs. 6000/-

THIRD PARTY ACT LIABILITY (contd..)THIRD PARTY ACT LIABILITY (contd..)SECTION 140SECTION 140

NO FAULT LIABILITYNO FAULT LIABILITY

The amount of compensation payableThe amount of compensation payable

(A) Rs. 50,000/- for death(A) Rs. 50,000/- for death

(B) Rs. 25,000/- permanent disablement(B) Rs. 25,000/- permanent disablement

INDIA MOTOR TARIFFINDIA MOTOR TARIFFGENERAL REGULATIONSGENERAL REGULATIONS

NO INSURANCE OUT OF PURVIEW OF TARIFFNO INSURANCE OUT OF PURVIEW OF TARIFF TWO TYPES OF POLICIESTWO TYPES OF POLICIES

– LIABILITY ONLYLIABILITY ONLY– PACKAGEPACKAGE

LOADING ON RATES UPTO 100% FOLLOWED LOADING ON RATES UPTO 100% FOLLOWED BY ANOTHER 100% FOR ADVERSE CLAIMS BY ANOTHER 100% FOR ADVERSE CLAIMS EXPERIENCE / INDIVIDUAL RISK EXPERIENCE / INDIVIDUAL RISK PERCEPTION AS PER INSURER’S PERCEPTION AS PER INSURER’S ASSESSMENTASSESSMENT

EXTENSION OF GEOG AREA AT ADDITIONAL EXTENSION OF GEOG AREA AT ADDITIONAL PREM.(PREM.(Bangladesh, Bhutan, Nepal, Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka, MaldivesPakistan, Sri Lanka, Maldives))

GENERAL REGULATIONS CONTD.GENERAL REGULATIONS CONTD.

VINTAGE CARS (<31.12.1940)VINTAGE CARS (<31.12.1940) NO AGREED VALUE POLICYNO AGREED VALUE POLICY SUM INSURED-SUM INSURED-IDVIDV SEPARATE BUT UNIFORM DEP. FOR SEPARATE BUT UNIFORM DEP. FOR

PARTIAL LOSSESPARTIAL LOSSES GEOGRAPHICAL ZONES:GEOGRAPHICAL ZONES:

– Private Cars/Two Wheelers/Private Cars/Two Wheelers/Taxis and 3 whlr Taxis and 3 whlr PSVs upto 6 pass./ 2 whlr taxisPSVs upto 6 pass./ 2 whlr taxis

– Zone A: Ahmedabad, Bangalore, Chennai, Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad , Kolkata, Mumbai, New Delhi and Hyderabad , Kolkata, Mumbai, New Delhi and Pune.Pune.

– Zone B:Zone B: Rest of IndiaRest of India

No Mid term inclusion/cancellation of extra No Mid term inclusion/cancellation of extra benefit benefit

Concession for vehicles specially designed for Concession for vehicles specially designed for physically/mentally challengedphysically/mentally challenged

Compulsory PA cover for owner driverCompulsory PA cover for owner driver Optional PA cover for other personsOptional PA cover for other persons Loading for vehicles imported without dutyLoading for vehicles imported without duty Maximum cap on TPPD coverMaximum cap on TPPD cover Compulsory deductible for all classes of vehiclesCompulsory deductible for all classes of vehicles Cover for electronic/electrical fittings not included Cover for electronic/electrical fittings not included

in manufacturer’s selling pricein manufacturer’s selling price

GENERAL REGULATIONS CONTD.

Additional premium for bi-fuel systemAdditional premium for bi-fuel system Additional premium for fibre glass fuel tanksAdditional premium for fibre glass fuel tanks Additional premium for vehicles used for Driving Additional premium for vehicles used for Driving

tuitionstuitions Cover for garaged vehicleCover for garaged vehicle Restricted cover for Fire &/or theft and LiabilityRestricted cover for Fire &/or theft and Liability Rules for rating of vehicles driven by non Rules for rating of vehicles driven by non

conventional source of powerconventional source of power Option to select higher towing charges than Option to select higher towing charges than

provided in the policyprovided in the policy


Other Other Commercial VehiclesCommercial Vehicles::– Zone AZone A : : Chennai, Delhi / New Delhi, Chennai, Delhi / New Delhi,

Kolkata, MumbaiKolkata, Mumbai– Zone BZone B : : All other State CapitalsAll other State Capitals– Zone CZone C : : Rest of IndiaRest of India

12 months policies12 months policies Short period ratesShort period rates Display of premiumDisplay of premium Full premium payable in advanceFull premium payable in advance Min premium 100 except for vehicles spl designed Min premium 100 except for vehicles spl designed

for physically/mentally challengedfor physically/mentally challenged


TransfersTransfers No claim BonusNo claim Bonus

– On OD onlyOn OD only– NCB follows fortunes of original insuredNCB follows fortunes of original insured– NCB of institution on vehicle transferNCB of institution on vehicle transfer– Change of InsurerChange of Insurer– Vehicle sold And not replaced immediatelyVehicle sold And not replaced immediately– Validity of NCB after policy expiryValidity of NCB after policy expiry– Sunset ClauseSunset Clause

G.R. 3 (A)G.R. 3 (A)

POLICY FORMSPOLICY FORMS

For all classes of vehicles, there are 2 types of policies.

1. Liability only PolicyCovering Act Liability plus enhanced third party property damage-Rs. 7.5 LakhsP.A. to Owner / Driver

2. Package Policy-Section I covers own damage- Section II covers liability as 1 above

MOTOR PACKAGE POLICY-MOTOR PACKAGE POLICY-PERILS COVERED UNDER SECTION -I PERILS COVERED UNDER SECTION -I

“OWN DAMAGE”“OWN DAMAGE”

I.I. Fire explosion, self ignition, lighteningFire explosion, self ignition, lightening

II.II. Burglary, housebreaking , theftBurglary, housebreaking , theft

III.III. Riot and strikeRiot and strike

IV.IV. Earthquake (fire and shock damage)Earthquake (fire and shock damage)

V.V. Flood, typhoon, hurricane, storm, Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, tempest, inundation, cyclone, hailstorm, frostfrost

PERILS COVERED IN PERILS COVERED IN “OWN DAMAGE” “OWN DAMAGE” (Contd..)(Contd..)

VI. Accidental external meansVI. Accidental external means

VII.VII. Malicious ActMalicious Act /Terrorism /Terrorism

VIII.VIII. Whilst in transit by road, rail, inland Whilst in transit by road, rail, inland waterway, lift, elevator or airwaterway, lift, elevator or air

IX.IX. Rockslide / LandslideRockslide / Landslide

EXCLUSIONSEXCLUSIONS(OWN DAMAGE)(OWN DAMAGE)

A.A. Consequential loss, depreciation, wear and Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, tear, mechanical or electrical breakdown, failures or breakages:failures or breakages:

B.B. Damage to tyres and tubes unless the Damage to tyres and tubes unless the motor car is damaged at the same time motor car is damaged at the same time when the liability of the insurer is limited when the liability of the insurer is limited to 50% of the cost of replacement:to 50% of the cost of replacement:

EXCLUSIONSEXCLUSIONS(OWN DAMAGE) (OWN DAMAGE) (Contd..)(Contd..)

C.C. Any accidental loss or damage whilst the Any accidental loss or damage whilst the insured or any person driving with the insured or any person driving with the knowledge and consent of the insured is knowledge and consent of the insured is under the influence of intoxicating under the influence of intoxicating liquor liquor & drugs& drugs

GENERAL EXCEPTIONSGENERAL EXCEPTIONS(APPLICABLE TO ALL SECTIONS OF THE POLICY)(APPLICABLE TO ALL SECTIONS OF THE POLICY)

1)1) Geographical areaGeographical area2)2) Contractual liabilityContractual liability3)3) Limitations as to useLimitations as to use4)4) Driver’s clauseDriver’s clause5)5) Consequential lossConsequential loss6)6) Radio activity contaminationRadio activity contamination7)7) Nuclear fission etc.Nuclear fission etc.8)8) War invasion etc.War invasion etc.

CLASSIFICATION OF CLASSIFICATION OF VEHICLESVEHICLES

1.1. Private CarsPrivate Cars

2.2. Motor Cycles / ScootersMotor Cycles / Scooters

3.3. Commercial VehiclesCommercial Vehicles

COMMERCIAL VEHICLESCOMMERCIAL VEHICLES

Commercial Vehicles are further sub-divided Commercial Vehicles are further sub-divided into groups.into groups.

A.A. Goods carrying VehiclesGoods carrying VehiclesA.1A.1 Public Carriers Public Carriers

A.2A.2 Private Carriers Private Carriers

A.3A.3 Goods carrying motorized 3 wheelers and Goods carrying motorized 3 wheelers and Motorized Pedal Cycles (Public Carriers)Motorized Pedal Cycles (Public Carriers)

A.4A.4 Goods carrying motorized 3 wheelers and Goods carrying motorized 3 wheelers and Motorized Pedal Cycles (Private carriers)Motorized Pedal Cycles (Private carriers)

Other than 3 wheelers

B. TrailersB. Trailers

C.C. Passenger Carrying vehiclesPassenger Carrying vehiclesC.1C.1 4 wheeled & 3 wheeled vehicles not exceeding 6 4 wheeled & 3 wheeled vehicles not exceeding 6

passengers capacity- Taxies, Autospassengers capacity- Taxies, Autos

C.2C.2 4 or more wheelers with passengers exceeding 6 4 or more wheelers with passengers exceeding 6 and 3 wheelers exceeding 17 passengers-Buses, and 3 wheelers exceeding 17 passengers-Buses, TemposTempos

C.3C.3 Motorized 3 wheelers carrying between 6 and 17 Motorized 3 wheelers carrying between 6 and 17 passengerspassengers

C.4C.4 Motorized 2 wheelers for carrying passengersMotorized 2 wheelers for carrying passengers

D.D. Miscellaneous vehicle & special type of Miscellaneous vehicle & special type of vehicles- Ambulances, Bulldozers etc.vehicles- Ambulances, Bulldozers etc.

E.E. Motor Trade Road Transit Risks onlyMotor Trade Road Transit Risks only

F.F. Motor Trade Road Risks onlyMotor Trade Road Risks only

G.G. Motor Trade Internal Risks onlyMotor Trade Internal Risks only

Mostly, MFGs & DEALERS

G.R. 4G.R. 4EXTENSION OF GEOGRAPHICAL AREAEXTENSION OF GEOGRAPHICAL AREA

The geographical Area of Motor Policies extended The geographical Area of Motor Policies extended to includeto include

BangladeshBangladeshBhutanBhutanNepalNepalPakistanPakistanSri LankaSri LankaMaldivesMaldives

G.R. 5G.R. 5VINTAGE CARS AND CLASSIC CARSVINTAGE CARS AND CLASSIC CARS

1.1. Any car manufactured prior to 31.12.1940 is Any car manufactured prior to 31.12.1940 is considered as Vintage car by the Vintage and considered as Vintage car by the Vintage and Classic Car Club of India.Classic Car Club of India.

2.2. Any car manufactured after 31.12.1940 but Any car manufactured after 31.12.1940 but before 31.12.1970 is considered as a Classic before 31.12.1970 is considered as a Classic car by the Vintage and Classic Car Club of car by the Vintage and Classic Car Club of India.India.

Schedule of Depreciation for arriving at Schedule of Depreciation for arriving at IDVIDV

Age of the VehicleAge of the Vehicle % of Depreciation % of Depreciation for fixing IDVfor fixing IDV

Not exceeding 6 monthsNot exceeding 6 months 5%5%

Exceeding 6 months but not exceeding 1 yearExceeding 6 months but not exceeding 1 year 15%15%

Exceeding 1 year but not exceeding 2 yearsExceeding 1 year but not exceeding 2 years 20%20%

Exceeding 2 years but not exceeding 3 yearsExceeding 2 years but not exceeding 3 years 30%30%



G.R. 9G.R. 9DEPRECIATION ON PARTSDEPRECIATION ON PARTS

Rubber parts / Nylon / Plastic Parts / Tyres & Tubes / Rubber parts / Nylon / Plastic Parts / Tyres & Tubes / Batteries / Air BagsBatteries / Air Bags

50%50%

Fibre glass componentsFibre glass components 30%30%

Glass PartsGlass Parts NilNil

All othersAll othersAge of the VehicleAge of the Vehicle % of % of

Depreciation Depreciation for fixing IDVfor fixing IDV

Not exceeding 6 monthsNot exceeding 6 months NilNil

Exceeding 6 months but not exceeding 1 yearExceeding 6 months but not exceeding 1 year 5%5%

Exceeding 1 year but not exceeding 2 yearsExceeding 1 year but not exceeding 2 years 10%10%





Exceeding 10 yearsExceeding 10 years 50%50%

G.R. 10G.R. 10GEOGRAPHICAL ZONESGEOGRAPHICAL ZONES

Private Cars / Motorized two Wheelers / Private Cars / Motorized two Wheelers / Commercial Vehicles under Sec. 4 C.1 & C.4Commercial Vehicles under Sec. 4 C.1 & C.4

Zone A:Zone A: Ahmedabad, Bangalore, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Chennai, Hyderabad, Kolkata,

Mumbai, New Delhi and Mumbai, New Delhi and PunePune

Zone B:Zone B: rest of Indiarest of India

G.R. 12 SHORT PERIOD SCALEG.R. 12 SHORT PERIOD SCALEPeriodPeriod % of Annual % of Annual

Premium RatePremium Rate

Not exceeding 1 monthNot exceeding 1 month 20%20%

Exceeding 1 month but not exceeding 2 monthsExceeding 1 month but not exceeding 2 months 30%30%

Exceeding 2 months but not exceeding 3 monthsExceeding 2 months but not exceeding 3 months 40%40%






Exceeding 8 monthsExceeding 8 months Full annual Full annual premium / ratepremium / rate

Schedule of No Claim DiscountSchedule of No Claim Discount

IIst st Yr.Yr. 20%20% IIIIndnd Yr. Yr. 25%25% IIIIIIrdrd Yr. Yr. 35%35% IVIVthth Yr. Yr. 45%45% VVthth Yr. Yr. 50%50%

G.R. 28, 29, 30G.R. 28, 29, 30DISCOUNTSDISCOUNTS

Membership of Automobile AssociationMembership of Automobile AssociationEnd. No. 8End. No. 8

Vintage Car DiscountsVintage Car Discounts End. No. 9End. No. 9

Anti-theft Devices DiscountsAnti-theft Devices Discounts End. No. 10End. No. 10

Voluntary Deductibles.Voluntary Deductibles.End End

No: 22ANo: 22A

G.R. 36G.R. 36PERSONAL ACCIDENT COVERPERSONAL ACCIDENT COVER

Compulsory PA coverCompulsory PA cover* To owner driverTo owner driver

* Optional PA coverOptional PA cover

End No. 15,16,17,18End No. 15,16,17,18

G.R. 39 G.R. 39 (A)(A)

TPPD COVERTPPD COVER

S. NoS. No Clause of VehicleClause of Vehicle TPPDTPPD

11 Private CarsPrivate Cars 7.50 Lakhs7.50 Lakhs

22 2 wheelers-private & Commercial2 wheelers-private & Commercial 1.00 lakh1.00 lakh

33 commercial Vehicles-3 wheelers-commercial Vehicles-3 wheelers-taxiestaxies

7.50 Lakhs7.50 Lakhs

44 Other commercial VehiclesOther commercial Vehicles 7.50 Lakhs7.50 Lakhs

G.R. 39G.R. 39(B)(B)

Premium Extended TPPD CoverPremium Extended TPPD Cover

No. 1No. 1 Rs.100/=Rs.100/= No. 2No. 2 Rs.50/=Rs.50/= No. 3No. 3 Rs.150/=Rs.150/= No. 4No. 4 Rs.200/=Rs.200/=

Reduction End. No.20Reduction End. No.20

PRIVATE CAR SEGMENT (DEFINITION)PRIVATE CAR SEGMENT (DEFINITION)

Cars of private types including station wagons used for Cars of private types including station wagons used for social, domestic and pleasure purposes and for business social, domestic and pleasure purposes and for business or professional purposes (excluding the carriage of or professional purposes (excluding the carriage of goods other than samples) of the insured or used by the goods other than samples) of the insured or used by the insured’s employees for such purposes but excluding use insured’s employees for such purposes but excluding use for hire or reward, racing, pace making, reliability trial, for hire or reward, racing, pace making, reliability trial, speed testing and use for any purpose in connection with speed testing and use for any purpose in connection with motor trade.motor trade.

MOTOR CYCLE / SCOOTERMOTOR CYCLE / SCOOTER

Mechanically propelled two wheelers with Mechanically propelled two wheelers with or without sidecaror without sidecar

Mechanically propelled three wheelers with Mechanically propelled three wheelers with engine capacity not exceeding 350cc.engine capacity not exceeding 350cc.

RATING CONSIDERATIONS - RATING CONSIDERATIONS - VALUEVALUE

Insured’s Declared ValueInsured’s Declared Value

RATING CONSIDERATIONSRATING CONSIDERATIONS

CUBIC CAPACITYCUBIC CAPACITY

--Upto 1000ccUpto 1000cc

-1000cc to 1500cc-1000cc to 1500cc

-Above 1500cc-Above 1500cc

ZONESZONES

Zones A & BZones A & B

For the purpose of rating under this tariff, the whole of Indian For the purpose of rating under this tariff, the whole of Indian has been divided into the following zones depending upon the has been divided into the following zones depending upon the location location of the office of registration of the vehicle of the office of registration of the vehicle concerned:concerned:

Zone A:Zone A: Ahmedabad, Bangalore, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and PuneMumbai, New Delhi and Pune

Zone B:Zone B: Rest of IndiaRest of India

AGE OF THE VEHICLEAGE OF THE VEHICLE

– Upto 5 yrs.Upto 5 yrs.– Between 5yrs and 10yrsBetween 5yrs and 10yrs– Above 10yrsAbove 10yrs

PREMIUM RATINGPREMIUM RATINGAge of the Age of the

VehicleVehicleZone BZone B Zone AZone A

Cubic CapacityCubic Capacity Cubic CapacityCubic CapacityNot Not Exceeding Exceeding 1000cc1000cc

Exceeding Exceeding 1000cc but 1000cc but not not exceeding exceeding 1500cc1500cc

Exceeding Exceeding 1500cc1500cc

Not Not Exceeding Exceeding 1000cc1000cc

Exceeding Exceeding 1000cc but 1000cc but not not exceeding exceeding 1500cc1500cc

Exceeding Exceeding 1500cc1500cc

Not exceeding Not exceeding 5yrs.5yrs.

3.039% on 3.039% on IDVIDV

3.191% on 3.191% on IDVIDV

3.343% on 3.343% on IDVIDV

3.127% on 3.127% on IDVIDV

3.283% on 3.283% on IDVIDV

3.440% on 3.440% on IDVIDV

Exceeding Exceeding 5yrs. But not 5yrs. But not exceeding exceeding 10yrs10yrs

3.1913.191% %

on IDVon IDV3.3513.351% %





on IDVon IDV

Exceeding 10 Exceeding 10 yrs.yrs.

3.2673.267% %






on IDVon IDV

Compulsory DeductiblesCompulsory Deductibles

– Upto 1500cc – Rs. 500Upto 1500cc – Rs. 500– Over 1500cc – Rs. 1000Over 1500cc – Rs. 1000

Voluntary Voluntary DeductiblesDeductibles

DiscountDiscount

Rs. 2500/-Rs. 2500/- 20% on the OD Premium of the Vehicle, 20% on the OD Premium of the Vehicle, subject to a maximum of Rs. 750/-subject to a maximum of Rs. 750/-




DISCOUNTS ON PRIVATE DISCOUNTS ON PRIVATE CARSCARS

Membership of Automobile AssociationMembership of Automobile Association No claim bonusNo claim bonus Vintage CarVintage Car Anti-theft devicesAnti-theft devices Voluntary deductiblesVoluntary deductibles

EXTRA BENEFITSEXTRA BENEFITS

Bifuel SystemsBifuel Systems

CNG / LPG @ 4% of value of kitsCNG / LPG @ 4% of value of kits Liability premium Rs.60/- per vehicleLiability premium Rs.60/- per vehicle

Liability to employeesLiability to employees-Rs.25/- per head-Rs.25/- per head

Electrical / Electronic Items (Accessories)Electrical / Electronic Items (Accessories)-4% of the value-4% of the value

Rallies held in IndiaRallies held in India

Rally extensions may be further extended to include Motor Rally extensions may be further extended to include Motor racing, speed tests, dexterity trails, hill climbs or motor racing, speed tests, dexterity trails, hill climbs or motor racing by charging a loading of 300% of both Own racing by charging a loading of 300% of both Own damage and Liability Only premiums at Short Period damage and Liability Only premiums at Short Period rates.rates.

LIMITATIONS OF USELIMITATIONS OF USE

- Use only for social, domestic and pleasure - Use only for social, domestic and pleasure purposes, other thanpurposes, other than

Hire or rewardHire or reward Carriage of goods (other than samples or personal luggage)Carriage of goods (other than samples or personal luggage) Organized racingOrganized racing

LIMITATIONS OF USE LIMITATIONS OF USE (Contd..)(Contd..)

Pace makingPace making

Speed testingSpeed testing

Reliable trailsReliable trails

Use in connection with Motor TradeUse in connection with Motor Trade

Two wheeler TariffTwo wheeler Tariff

Commercial VehiclesCommercial Vehicles

Rating FactorsRating Factors

• I. D. V.

• Zones Zone A, B, C

• Age

• G.V.W / Licensed Carrying Capacity

Misc. & Special Vehicles “D”Misc. & Special Vehicles “D”

List of such Vehicles is given in the Annexure :

Non-Motor Policies

Excess :0.5% of I.D.V. subject to minimum of Rs.2000/-

Motor Trade Road Transit Motor Trade Road Transit Risks“E”Risks“E”

Rate as per DistanceRate as per Distance Geographical Area within radius of 80 km from Insured’s Geographical Area within radius of 80 km from Insured’s

address address

Extension permissible upto total 120 km with additional Extension permissible upto total 120 km with additional premiumpremium

50% limitation clause for damage to tyres can be deleted50% limitation clause for damage to tyres can be deleted Premium 1% of basic OD premium (Minimum Rs.5/- per Premium 1% of basic OD premium (Minimum Rs.5/- per

chassis)chassis)

Motor Trade Road Risk “F”Motor Trade Road Risk “F”

Trade Certificate Basis or

Named Driver Basis

All Trade Certificates or all Drivers employed to be declared

OD Losses upto Rs.25000/- onlyFor M/c OD limit Rs. 7500/-Extension @ 1% of Excess Value

DRIVER’S CLAUSEDRIVER’S CLAUSE

- Any person including insured:Any person including insured:

Provided that a person driving holds an effective Provided that a person driving holds an effective driving licence at the time of accident and is not driving licence at the time of accident and is not disqualified from holding or obtaining such a disqualified from holding or obtaining such a licence.licence.

Provided also that the person holding an effective Provided also that the person holding an effective learner’s licence may also drive the vehicle and that learner’s licence may also drive the vehicle and that such a person satisfies the requirement of Rule 3 of such a person satisfies the requirement of Rule 3 of the CMV Rules 1989.the CMV Rules 1989.

LEARNER’S LICENCELEARNER’S LICENCE

PROVISIONS OF RULES 3 OF C.M.V RULES-PROVISIONS OF RULES 3 OF C.M.V RULES-19891989

While receiving instructions or gaining experience in While receiving instructions or gaining experience in driving with the object of presenting himself for a driving with the object of presenting himself for a test of competence to drive so long as:test of competence to drive so long as:

a)a) such a person is the holder of an effective such a person is the holder of an effective learner’s learner’s licence issued to him in Form 3 to drive licence issued to him in Form 3 to drive the Vehicle.the Vehicle.

PROVISIONS OF RULES 3 OF C.M.V. RULES – 1989PROVISIONS OF RULES 3 OF C.M.V. RULES – 1989 (Contd..)(Contd..)

b)b) Such a person is accompanied by an instructor Such a person is accompanied by an instructor holding an effective licence to drive the vehicle holding an effective licence to drive the vehicle and such instructor is sitting in such a position to and such instructor is sitting in such a position to control or stop the vehicle andcontrol or stop the vehicle and

c)c) There is painted, in front and the rear of the There is painted, in front and the rear of the vehicle or on a plate or card affixed to the front vehicle or on a plate or card affixed to the front and the rear. The letter “L” in the red on a white and the rear. The letter “L” in the red on a white background as under.background as under.

INSURANCE DOCUMENTSINSURANCE DOCUMENTS(UNDERWRITING)(UNDERWRITING)

Proposal Form Proposal Form Policy FormPolicy Form Cover NoteCover Note Certificate of InsuranceCertificate of Insurance endorsementsendorsements

CLAIMS PROCEDURE – OWN DAMAGECLAIMS PROCEDURE – OWN DAMAGE

Condition 1Condition 1:: Notice shall be given in writing to the Notice shall be given in writing to the company company immediately upon the occurrence of immediately upon the occurrence of any any accident and in the event of any accident and in the event of any claim. claim.

Condition 3Condition 3:: The company may at its own option repair The company may at its own option repair reinstate or replace the vehicle or reinstate or replace the vehicle or

part part thereof and/or its accessories or may thereof and/or its accessories or may pay pay in cash the amount of the loss or in cash the amount of the loss or damage damage and the liability of the and the liability of the company shall not company shall not exceed:exceed:

For total loss / constructive total loss of the vehicle the For total loss / constructive total loss of the vehicle the Insured’s Declared ValueInsured’s Declared Value (IDV) of the vehicle (including (IDV) of the vehicle (including accessories thereon) as specified in the Schedule less than accessories thereon) as specified in the Schedule less than value of the wreck.value of the wreck.

((b)b) For partial losses, i.e. losses other than For partial losses, i.e. losses other than Total Loss/Constructive Total Loss of the vehicle – actual Total Loss/Constructive Total Loss of the vehicle – actual and reasonable costs of repair and / or replacement of and reasonable costs of repair and / or replacement of parts lost/damaged subject to depreciation as per limits parts lost/damaged subject to depreciation as per limits specified.specified.

Condition 4Condition 4:: The Insured shall take all reasonable steps The Insured shall take all reasonable steps to safeguard to safeguard the vehicle from loss or damage and to the vehicle from loss or damage and to maintain it in efficient condition and the Company shall maintain it in efficient condition and the Company shall have at all times free and full access to examine the have at all times free and full access to examine the vehicle or any part thereof or any driver or employee of vehicle or any part thereof or any driver or employee of the insured. In the event of any accident or breakdown, the insured. In the event of any accident or breakdown, the vehicle shall the vehicle shall not be left unattended without not be left unattended without proper precautions being taken to prevent further damage proper precautions being taken to prevent further damage or loss and if the vehicle be driven before the necessary or loss and if the vehicle be driven before the necessary repairs are effected any extension of the damage or any repairs are effected any extension of the damage or any further damage to the vehicle shall be entirely at the further damage to the vehicle shall be entirely at the insured’s own risk.insured’s own risk.

OWN DAMAGE CLAIMS OWN DAMAGE CLAIMS DOCUMENTSDOCUMENTS

IntimationIntimation Claim formClaim form Estimate of RepairsEstimate of Repairs Survey ReportsSurvey Reports Final bill of repairs with satisfaction note by the Final bill of repairs with satisfaction note by the

insurerinsurer Cash receiptCash receipt Loss voucherLoss voucher

DOCUMENTS FOR DOCUMENTS FOR VERIFICATIONVERIFICATION

Registration CertificateRegistration Certificate Driving LicenceDriving Licence Police report if required Police report if required TOWING--TOWING-- Cost of protection, removal to the nearest Cost of protection, removal to the nearest

repairer and re-deliveryrepairer and re-delivery

CLAIMS PREOCEDURE-CLAIMS PREOCEDURE-THIRD PARTYTHIRD PARTY

MACTMACT Lok AdalatLok Adalat

Motor Insurance

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Transcript of Motor Insurance