AUTO INSURANCE

Bisahu Sahu

Shreeya Gupta

Deepti Thakur

Introduction

1894- 1st motor car was introduce in U.K.

1895 – 1st motor car insurance introduce in U.K.

1903 –GIC Ltd. was established to transact insurance

WHAT IS MOTOR INSURANCE?

Insurance is protection against ‘unforeseen risk’

It covers against liability damages & unexpected repairs

Cont..

These liability damages can be of two types:-

Bodily injury has been caused to a third person.

Property of a third person and own car.

Importance of Motor Insurance

Protection against physical damage. Protection against damage due to natural and man-made

calamities.

It provide accident cover for individual owners.

Types of Motor Insurance Policies

Private Car Insurance

Two Wheeler Insurance

Commercial Vehicle Insurance

Third Party Insurance

Liability Insurance

Second Hand Car Insurance

Motor/ Vehicle Insurance

TYPES OF auto insurance

Car Insurance

Two Wheeler Insurance

Commercial Vehicle Insurance

Private Car Insurance

Loss could be a result of an accident / theft.

Premium amount is decided on basis of IDV of vehicle

Cont…

changes in IDV make difference to premium.

If you raise the IDV, the premium rises.

If you lower it down, the premium reduces.

 Coverage under Car Insurance

Third Party Liability Coverage

Collision Coverage

Comprehensive Coverage.

Third Party Liability Coverage

It covers legal liability to a 3rd party

It covers injury caused by you to another person.

It is legally mandatory in India under MV Act.

Collision Coverage

It protects financially against damage to his/her own car.

It pays the insured for damage caused by collision.

Damage/loss due to theft is not included. 

Comprehensive Coverage

These policy is more extensive & preferred by most people

It include damage/theft & 3rd party legal liability.

It also cover accessories, engine protector etc. 

Key Benefits of Car Insurance

Coverage against loss or damage to insured vehicle

Coverage against financial liability of third party.

Personal accident cover

What is not covered in Car Insurance?

Loss/damage to the vehicle driven by person without valid driving license

Loss/damage to vehicle as a result of intoxication.

Loss/damage to engine as result of oil leakage

Two wheeler Insurance

India has one of the largest 2 wheeler production.

It is perfect for quick mobility & convenience.

 Two Wheeler Insurance Coverage

Loss/damage to your 2wheeler against natural calamities

Loss/damage to your 2wheeler against man-made calamities

3rd party legal liability protection .

Commercial Vehicle Insurance

It cover all vehicles used for commercial purposes

Third Party Motor Insurance

It covers 3rd person who has been damaged in an accident

Does Not cover damage, theft, injuries of the owner.

Liability Insurance

Insurer agrees to defend its insured in

court.

Second Hand Insurance

Need to renew its insurance policy

Catastrophic loss

What is catastrophe?

It cause severe loss, injury or property damage

Most often associated with natural events

Damage from man-made disasters

How Insurers Manage Catastrophe ExposuresIdentifying catastrophe risk appetite

Measuring catastrophe exposure

Pricing for catastrophe exposure

Controlling catastrophe

Exposure and evaluating ability to pay catastrophe losses

Thank you