|
| Motor
Policy - Private Car |
|
SALIENT
FEATURE
|
|
Motor
Insurance Contracts are subject to the
basic principles applicable to property
and liability insurance in general. The
owner of the vehicle must bear a legal
relationship to the vehicle whereby he
or she stands to benefit by the safety
of the vehicle, right, interest or freedom
from liability and stands to lose by any
loss , damage , injury or creation of
liability.
|
|
SCOPE
OF COVER
|
|
There
are two types of policies available.....
Policy A ......to cover Act liability.
Policy B ......to cover both own damage
losses and Act liability.
Section I of Standard form of Private
Car Policy ( B ) or Motor Cycle/Scooter
Policy covers against loss or damage to
the insured vehicle and/or its accessories
whilst thereon.......
a) by fire , explosion ( both external
and internal ) , self-ignition or lightening
;
b) by burglary , housebreaking or theft
;
c) by riot and strike ;
d) by earthquake ( fire and shock damage
) ;
e) by flood, typhoon , hurricane , storm
, tempest , inundation , cyclone , hailstorm
;
f) by accidental external means ;
g) by malicious act ;
h) by terrorist activity ;
i) whilst in transit by road , rail ,
inland waterway , lift , elevator or air.
Section II covers Liability to third parties
which means this section provides indemnity
to the Insured in the event of accident
caused by or arising out of the use of
the motor vehicle against all sums, including
claimants costs and expenses, which the
insured shall become legally liable to
pay in respect of --
(i) death of or bodily injury to any person
,including occupants carried in the motor
vehicle, provided such occupants are not
carried for hire or reward , but not where
such death or injury arises out of and
in the course of the employment of such
person by the Insured. Limits of Liability
under this section as per M V Act , 1988
is unlimited ;
(ii) damage to property other than property
belonging to the insured or held in trust
or in the custody or control of the insured.
Limits of Liability is Rs.6000/- in respect
of any one claim or series of claims arising
out of one event but Tariff however provides
for increased limits upto unlimited liability
for TP ( Third Party ) property damage,
at an additional premium.
|
|
EXCLUSIONS
|
|
a)
Consequential loss, wear and tear, mechanical
or electrical breakdown, failures or breakages
b) damage to tyres unless the motor vehicle
is damaged at the same time when the liability
of the insurer is limited to 50% of the
cost of replacement ;
c) any accidental loss or damage suffered
whilst the insured or any person driving
with the knowledge and consent of the
insured is under the influence of intoxicating
liquor or drugs.
d) cost of part/s and allied labour ,
failure of which led any accident..
|
|
GENERAL
EXCEPTIONS
|
|
Vehicles
plying outside the Geographical Area,
claim out of any contractual liability,
vehicles being used otherwise than in
accordance with the limitations as to
use, being driven by any person other
than a driver as stated in the Drivers
Clause, nuclear risks, liability directly
or indirectly arising from nuclear weapons
material are the general exceptions
|
|
BASIS
OF SUM INSURED
|
|
nvoice
price for new vehicle together with additional
expenditure if any on accessories can
be the basis of Sum Insured.
|
|
PRICING
/ PREMIUM FIXING
|
|
The
Tariff Advisory Committee have laid down
rules, regulations, rates, advantages,
terms and conditions for transaction of
motor insurance business. The rate has
been revised since 01.04.90 and liability
risk premium since 01.07.98.
For Private Car Policies......
Own damage premium comes around 3% of
Insured Estimated Value declared and liability
premiums to be added @ Rs.340/- or Rs.509/-
depending on cubic capacity (for not exceeding
1500cc & exceeding 1500cc ).
|
|
BASIS
OF INDEMNITY
|
|
Basis of Indemnity will be to the extent
lost/suffered in terms of replacement
value for the parts to be replaced in
case of partial accidental damage with
associated labour to be assessed by an
Independent surveyor (relaxed for in-house
surveyor within the estimate of Rs.20,000/-)
keeping policy terms and condition in
view. For total loss, market value determined
by an independent surveyor will be the
basis. For extensive damage which ultimately
makes the repairing uneconomical may be
considered for total loss to be derived
by the independent surveyor. In such cases,
the insured, if wishes, can retain the
salvage and net amount can be disbursed
towards total settlement.
|
__________________________________________________________________
|
|
|
