MOTOR INSURANCE

Presented by :- PALLAVI NIDHAL ABDULLA

Motor insurance (also known as vehicle / car / auto insurance) is insurance purchased for cars, trucks, and other road vehicles. Its primary objective is to provide protection against physical damage resulting from traffic collisions and against liability that could also arise there-from.

MOTOR VEHICLES

PRIVATEVEHICLES

TWO WHEELERS

PVT CARS

COMMERCIALVEHICLES

GOODS CARRYING

PASSENGER

CARRYINGMISC.

VEHICLESMOTOR TRADE

Laws in India make it mandatory for vehicles to be insured before they are driven. The new Road Transport and Safety Bill, 2014 proposed to raise the fine for driving a non-insured car from Rs 10,000 to Rs 75,000. However, it is not for the fear of the law that you must get your vehicle insured. 

Getting an insurance policy for your car is protects your life, money, and any third party. A car is an expensive investment that always lasts at least a couple of years. It goes without saying that thorough research is needed to buy the right policy for your car. 

PERILS COVERED1. By fire explosion self ignition or lightning2. By burglary housebreaking or theft3. By riot and strike4. By earthquake5. By flood , typhoon , hurricane storm and cyclone6. By malicious act7. By terrorist activity8. By landslide / rockslide9. Whilst in transit by road rail , inland waterway

lift elevator or air

What Motor Insurance excludes Not having a valid Driving License Under Influence of intoxicating liquor/

drugs Accident taking place beyond

Geographical limits While Vehicle is used for unlawful

purposes Electrical/Mechanical Breakdowns.

Principles of Motor Insurance

Utmost Good Faith

Insurable Interest

Principle of Indemnity

Principle of Contribution

Principle of Subrogation

Principle of loss Minimization

Principle of ‘CAUSA PROXIMA’

PARAMETERES THAT DECIDE PREMIUM

Age of the person Driving history Making of the vehicle Profession of the person Geographic location

TYPES OF MOTOR INSURANCEMotor insurance provides mainly two types of

policies :a. Liability only or Act only or Third Party policy -mandatory insurance requirement as per Indian

motor vehicle act 1988.This policy insures the liability of the owner of vehicle against third party.

b. Package or Comprehensive Policy - It covers the damage to the vehicle apart from the

mandatory liability insurance.

Liability cover 1a. Third party death or bodily injury. b. Third party property damage. 2a.Personal Accident cover to owner/

driver death. b. Personal accident cover to owner/

driver injury. c. Total compensation not to exceed 1 lac in

two wheelers and 2 lac in case of other vehicles.(exclusions as per pa policy)

Comprehensive policy Comprehensive policy includes the below in addition to

liability only policy covers:a. Fire, Explosion, Self ignition, Lightening.b. Burglary, housebreaking or theft.c. By riot and strike.d. By Earthquake.e. By flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hail storm, frost.f. By accidental external means.g. By malicious act.h. By terrorist activity.i. While in transit by road, rail, inland water way, lift, elevator or air.

Exclusions Contractual liability. War perils nuclear perils . Consequential loss, Depreciation ,Wear and

tear ,mechanical or electrical break down. Damage suffered due to driving the vehicle under the

influence of intoxicating liquor or drugs. Claims arising outside the geographical area

specified in the policy. Claims arising whilst the vehicle is used in

contravention of the limitations as to use. Claims arising when the vehicle is driven by a person

without valid driving license

CAR INSURANCE POLICY TWO WHEELER INSURANCE

INSURANCE POLICY

THE POLICY COVERS FOLLOWING :- Loss or damage to your vehicle against natural

calamities Loss or damage to your vehicle against man-made

calamities Personal Accident Cover- Coverage of `2 lakhs for the

individual driver of the vehicle while travelling, mounting or dismounting from the car. Optional personal accident covers for co-passengers are also available.

Third Party Legal Liability - Protection against legal liability due to accidental damages resulting in the permanent injury or death of a person, and damage caused to the surrounding property.

Policy does not cover

Normal wear and tear and general ageing of the vehicle Depreciation or any consequential loss Mechanical/ electrical breakdown Loss/ damage due to war, mutiny or nuclear risk Damage to/ by a person driving any vehicles or cars without a

valid license Damage to/ by a person driving the vehicle under the

influence of drugs or liquor Vehicles including cars being used otherwise than in

accordance with limitations as to use Wear and tear of consumables like tyres and tubes unless the

vehicle is damaged at the same time, in which case the liability of the company shall be limited to 50% of the cost of replacement

HOW IDV IS CALCULATED Each car is insured at a fixed value which is termed as the Insured’s

Declared Value (IDV). This sum insured is calculated on the basis of a number of factors. Here’s how it works:

IDV is calculated on the basis of the manufacturer's listed selling price of the vehicle plus the listed price of any accessories after deducting the depreciation for every year as per the schedule provided by the Indian Motor Tariff.

If the price of any electrical and / or electronic item installed in the vehicle is not included in the manufacturer's listed selling price, then the actual value (after depreciation) of this item can be added to the sum insured over and above the IDV.

In case of vehicles fitted with bi-fuel system such as petrol/ diesel and CNG/LPG, permitted by the concerned RTO, the CNG/LPG kit fitted to the vehicle is to be insured separately at an additional premium of 4% on the value of such kit. You need to specifically declare this in the proposal form.

Car Theft and Insurance - An ICICI Lombard Case Study

An insured car was stolen and as per the usual process, the claimant processed a claim. However, the insurance company kept delaying the disbursement of the claim in the faint hope of car getting recovered in sometime soon. Meanwhile, the frustrated claimant, a resident of Kolkata, brought a new car. After 15 months, police recovered the lost car in a dilapidated condition. Now, the insurance company used this as an excuse to reject the claim flaring a debate.

Is the insurance company justified in rejecting the claim? The insurance company was knowingly delaying the process in

the faint hope of recovering the car and getting excused from paying up.

This is a clear case of bluffing by the insurance company.It is such practices by the insurance provider that tarnishes a buyer’s trust and makes insurance buying an unpopular choice.

Settle the claim within a stipulated time to keep the real purpose of buying a policy intact. Reduce buyer’s harassment by dealing with transparency and honesty. The idea should not be to delay the claim but to do the right thing and sympathize with the claimant too. It is for timely financial assistance that a buyer pays premium and stays with an insurance company.

THANK YOU !!!!!