motor vehicle insurance

8/3/2019 Motor Vehicle Insurance

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MOTOR VEHICLE INSURANCE

Importance: 40% of insurance premium from this classMotor Vehicle Insurance classified into

1.Private Car, 2.Motor cycle, 3.Scooter, 4. Comm.

Vehicles a)Light b) Medium, c)Heavy 5. Passenger carrying vehicle, 6. Motorized Rickshaw, 7. Three

wheelers, 8. Taxis, 9. Buses a) Mini b) Medium c)

Heavy, 10. Misc. vehicles a) Ambulance b) Publicity

Van c) Mobile Library d) Dispensary

TYPE OF LOSSES

1. Loss or damage to vehicle 2. Third party liability



MOTOR VEHICLE LIABILITY

ONLY POLICY 1Covers third party liabilities for bodily injuries and/or

property damage. Personal accident cover for

owner/driver

As per Motor Vehicle Act 1939 & Amendment 1988,

no vehicle can ply in public place without this

policy. Following are compulsorily covered

1) Any liability incurred by insured in respect of

death or bodily injury

2) Damage to any property to any third party

3)Death or bodily injury to any person of a public



LIABILITY ONLY POLICY 2

4. Liability arising under Workman Compensation Act1923 in respect of death or bodily injury of

a) Paid driver of the vehicle

b) Conductor or ticket examiner in public servicevehicles

c) Workers carried in a goods vehicle

d) Liability in respect of death or bodily injury of passengers who are carried for hire or rewards or

by reason of or in pursuance of contract of

employment



LIABILITY ONLY POLICY 3he policy of insurance should cover the liability incurred in

respect of any one of accidents as under . Death or bodily injury to any person: Amount of liability

incurred without any limit

2. Damage to any property of third party: Limit of 100%

3. Liability in respect of death or bodily injury to any

passenger of public service vehicle in a public place is the

amount of liability incurred (No limit)

4. Section 140 of Motor Vehicle Act1988 provides for liability of owner of Motor Vehicle to pay compensation

in certain cases on principle of no fault, compensation

payable is Rs50K for death,25K for permanent disability

of any person resulting in for accident arising out of use of



MOTOR VEHICLE PACKAGE POLICY

Also known as Comprehensive Policy similar to allvehicles: Sec.1: Loss or damage: Risk covered are

Fire,explosion,self ignition or lightening

Burglary, house breaking or theft

Riots/ strikes Earth quake(Fire or stock damage)

Flood,Typhoon,Hurricane,Storm,Tempest,Inundation,Cyclone,Hailstorm,Frost

Accidental external means Malicious act

Terrorist activities

Transit by road, rail,inland water lift,elevator

Landslide, rockslide



MOTOR VEHICLE PACKAGE

POLICY: EXCLUSIONS 1 Consequential losses

Depreciation

Wear & tear

Mechanical & electrical breakdown

Failure in breaking

Damage to tyres unless vehicle is damaged at thesame time (50% of replacement payable)

Loss due to driving under of intoxicated liquor/ drug




POLICY: EXCLUSIONS 2

In case of motorcycle & comm. Vehicles

additional exclusions are

1. Loss or damage to accessories by burglary, house

breaking or theft unless vehicle is stolen at the

same time

2. Comm. Vehicle: damage caused by overloading or

strain to vehicle

3. Towering charges: To & fro to workshop: Motor

Cycle:300/-,Car:1500, Taxis:1500,3 wheelers:750

4. Compulsory Excess:




POLICY: EXCLUSIONS 3 COMPULSORY EXCESS:

1. Repairs: After authorization by insurance co.

a)Motorcycle: Rs 150

b)Car & comm. Vehicle: Rs 500Insurer is furnished detailed estimate of cost given every

assistance to ensure that repairs are necessary & chargesare reasonable

2. Liability to third parties: As already discussed plus legalcost & expenses

3. Personal accident cover to owner & driver: death or totaldisability within 6 months

For Comm. Vehicle: while vehicle towering one disabledmechanicall ro elled vehicle

motor vehicle insurance

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