motor insurance i

• MOTOR INSURANCE DEALS WITH FOLLOWING LOSSES DUE TO USE OF VEHICLE :-

LOSS OR DAMAGE TO VEHICLE ITSELF

ACCIDENTAL INJURY / DEATH OF THIRD PARTY

PROPERTY DAMAGE OF THIRD PARTY

2

HISTORY OF MOTOR HISTORY OF MOTOR INSURANCEINSURANCE

HISTORY OF MOTOR HISTORY OF MOTOR INSURANCEINSURANCE

1894 - FIRST CAR WAS INTRODUCED IN U.K. 1895 - FIRST INSURANCE POLICY WAS ISSUED

COVERING THIRD PARTY LIABILITY.

1899 –OWN DAMAGE WAS ADDED.

1930-1934 ACT WAS PASSED MAKING THIRD PARTY INS. COMPULSORY.

3

• 1939 – MOTOR VEHICLE ACT WAS PASSED IN INDIA.

• 1946 – PROVISION OF COMPULSORY T.P. INS. WAS INTRODUCED.

• 1988 – M.V.ACT OF 1939 WAS REPLACED.

• 1989 – THIS NEW ACT BECAME EFFECTIVE FROM 01-07-1989

4

APPLICABILITY OF BASIC APPLICABILITY OF BASIC PRINCIPLESPRINCIPLES

APPLICABILITY OF BASIC APPLICABILITY OF BASIC PRINCIPLESPRINCIPLES

UTMOST GOOD FAITH

INSURABLE INTEREST

INDEMNITY

SUBROGATION

CONTRIBUTION

PROXIMATE CAUSE

5

TYPES OF MOTOR VEHICLESTYPES OF MOTOR VEHICLES

• DEFINITION OF “MOTOR VEHICLE” AS PER M.V.ACT,1988

• “ANY MECHANICALLY PROPELLED VEHICLE ADAPTED FOR USE UPON ROADS”

6

TYPES OF MOTOR VEHICLESTYPES OF MOTOR VEHICLES

MOTOR VEHICLES ARE BROADLY CLASSIFIED INTO FOLLOWING THREE CATAGORIES :-

• PRIVATE CARS – USED FOR SOCIAL,DOMESTIC,PLEASURE & ROFESSIONAL PURPOSES

7

• TWO WHEELERS – USED WITH OR

WITHOUT SIDE

CAR FOR ABOVE

PURPOSES

• COMMERCIAL VEHICLES – ALL

OTHER VEHICLES

8

CLASSIFICATION CLASSIFICATION OF OF

COMMERCIAL VEHICLES COMMERCIAL VEHICLES

CLASSIFICATION CLASSIFICATION OF OF

COMMERCIAL VEHICLES COMMERCIAL VEHICLES

GOODS CARRYING –

a) PRIVATE CARRIERS –CARRYING OWN GOODS b) PUBLIC CARRIERS – CARRYING GOODS FOR HIRE OR REWARD 9

PASSENGER CARRYING – USED

FOR HIRE OR

REWARD

(BUSES,

AUTOS,

TAXIES etc.)

10

MISC. & SPECIAL TYPE VEHICLES –

– AGRICULTURE TRACTORS, AMBULANCES, CRANES, DUMPERS, FIRE BRIGADE, BULLDOZERS, BREAK-DOWN VEHICLES, EXCAVATORS, CINEMA FILM RECORDING & PUBLICITY VANS, ROAD ROLLERS, DISPENSARIES etc.

11

COMPULSORY THIRD PARTY COMPULSORY THIRD PARTY INSURANCEINSURANCE

COMPULSORY THIRD PARTY COMPULSORY THIRD PARTY INSURANCEINSURANCE

• AS PER M.V.ACT,1939 AND AS AMENDED IN 1988, EVERY MOTOR VEHICLE MUST BE COMPULSORILY INSURED FOR ANY ACCIDENTAL INJURY / DEATH AND / OR PROPERTY OF THIRD PARTY.

• CHAPTERS X,XI & XII OF M.V.ACT,1988 DEALS WITH THIS COMPULSORY INSURANCE

12

INDIA MOTOR TARIFFINDIA MOTOR TARIFFINDIA MOTOR TARIFFINDIA MOTOR TARIFF

• IN INDIA, MOTOR INS. HAS BEEN GOVERNED BY THIS TARIFF, ISSUED BY TAC, REVISED FROM TIME TO TIME LATEST EFFECTIVE FROM 01-07-2002.

• THIS TARIFF HAS LAID DOWN RULES, REGULATIONS, RATES, ADVANTAGES, TERMS AND CONDITIONS FOR TRANSACTING MOTOR INSURANCE.

13

TYPES OF POLICIESTYPES OF POLICIES

• LIABILITY ONLY POLICY (THIRD PARTY)

• PACKAGE POLICY

• T.P.+ FIRE & THEFT

• FIRE & THEFT ONLY

14

LIABILITY ONLY POLICYLIABILITY ONLY POLICYLIABILITY ONLY POLICYLIABILITY ONLY POLICY

• APPLICABLE TO ALL CLASSES OF

VEHICLES WITH SUITABLE CHANGES

IN “LIMITATIONS AS TO USE”.

15

SCOPE OF COVERSCOPE OF COVERSCOPE OF COVERSCOPE OF COVER COVERS INSURED’S LEGAL LIABILITY

ARISING OUT OF USE OF VEHICLE, IN RESPECT OF :

a) DEATH OF OR BODILY INJURY TO

ANY THIRD PARTY,AS PER M.V.

ACT - UNLIMITED.

b) THIRD PARTY PROPERTY DAMAGE

(LIMIT SPECIFIED IN POLICY)16

INCLUDING CLAIMANT’S COST &

EXPENCES.

INCLUDING INSURED’S COST & EXPENCES, IF INCURRED WITH THE WRITTEN CONSENT OF INSURERS.

INDEMNIFICATION FOR ANY OTHER PERSON DRIVING ON BEHALF OF INSURED,PROVIDED POLICY TERMS & CONDITIONS OBSERVED. 17

IN CASE OF INSURED’S DEATH, HIS PERSONAL REPRESENTATIVE WILL BE INDEMNIFIED.

INSURERS HAVE THE RIGHT OF REPRESENTATION IN ANY INQUIRY OR TO DEFEND IN THE COURT OF LAW.

18

AVOIDANCE OF CERTAIN AVOIDANCE OF CERTAIN TERMS AND RIGHTS OF TERMS AND RIGHTS OF

RECOVERYRECOVERY

• NO POLICY CONDITION OR ENDORSEMENT WILL EFFECT ANY INDEMNIFICATION UNDER THE POLICY WHICH IS TO BE AS PER M.V.ACT.

• BUT THE INSURER CAN RECOVER THE AMOUNT FROM THE INSURED IN CASE OF LIABILITY BEYOND POLICY COVERAGE.

19

PERSONAL ACCIDENT COVER PERSONAL ACCIDENT COVER TO OWNER -DRIVERTO OWNER -DRIVER

• WHILE DRIVING, MOUNTING INTO OR DISMOUNTING FROM OR TRAVELLING IN THE VEHICLE AS CO-DRIVER.

• FOR BODILY INJURY / DEATH CAUSED BY VOILENT, ACCIDENTAL, EXTERNAL AND VISIBLE MEANS WITHIN 6 MONTHS OF INJURY.

• SUM INSURED Rs. 2 LAKHS (AS PER SCALE OF COMPENSATION)

20

PROVIDEDPROVIDED

• DEATH OR INJURY NOT ARISING OR RESULTING FROM :

a) INTENTIONAL SELF INJURY, SUICIDE OR ATTEMPTED SUICIDE, PHYSICAL DEFECT;

b) ACCIDENT HAPPENING UNDER THE INFLUENCE OF INTOXICATING LIQUOR OR DRUGS 21

GENERAL EXCEPTIONSGENERAL EXCEPTIONS THE COMPANY HAS NO LIABILITY IN

CASE :

• THE VEHICLE IS BEING DRIVEN OTHER THAN AS PER “LIMITATIONS AS TO USE”

• DRIVER NOT SATISFYING CONDITIONS OF DRIVER CLAUSE

• ANY CONTRACTUAL LIABILITY

22

• DEATH OR INJURY OF AN EMPLOYEE DURING THE COURSE OF HIS EMPLOYMENT, EXCEPT AS PER W.C.ACT;

• DEATH OR INJURY TO ANY PERSON BEING CARRIED IN THE VEHICLE, EXCEPT UNDER CONTRACT OF EMPLOYMENT;

• LIABILITY ARISING OUT OF WAR LIKE PERILS OR USE OF NUCLEAR MATERIAL

23

GENERAL POLICY CONDITIONSGENERAL POLICY CONDITIONS

1. WRITTEN NOTICE OF CLAIM

2. NO ADMISSION, OFFER OR PAYMENT WITHOUT WRITTEN CONSENT OF THE INSURER.

3. VEHICLE TO BE MAINTAINED IN GOOD CONDITION AT ALL TIMES.

4. CONTRIBUTION TO CLAIM IN CASE OF MORE THAN ONE POLICY.

5. CONDITION OF ARBITRATION24

PACKAGE POLICYPACKAGE POLICYPRIVATE CARPRIVATE CAR

• THE POLICY HAS FOLLOWING THREE SECTIONS :-

SECTION –I OWN DAMAGE SECTION –II THIRD PARTY LIABILITY SECTION –III PERSONAL ACCIDENT

COVER TO OWNER

DRIVER

25

PACKAGE POLICY – PRIVATE CARPACKAGE POLICY – PRIVATE CAR

• SECTION –I OWN DAMAGE

• THE COMPANY WILL INDEMNIFY AGAINST LOSS OR DAMAGE TO THE INSURED VEHICLE CAUSED BY

a) FIRE, EXPLOSION, SELF IGNITION OR LIGHTNING;

b) BURGLARY HOUSEBREAKING OR THEFT;

c) RIOT & STRIKE;

26

d) EARTHQUAKE;

e) FLOOD, TYPHOON, HURRICANE, STORM, TEMPEST, INUNDATION, CYCLONE, HAILSTORM, FROST


27

f) ACCIDENTAL EXTERNAL MEANS;

g) MALICIOUS ACT;

h) TERRORIST ACTIVITY;

i) WHILST IN TRANSIT BY ROAD, RAIL, INLAND WATERWAY, LIFT, ELEVATOR OR AIR;

j) LANDSLIDE / ROCKSLIDE28

PRIVATE CAR – PACKAGE POLICYPRIVATE CAR – PACKAGE POLICY

SUBJECT TO DEDUCTION FOR DEPRECIATION AS PER RATES BELOW IN RESPECT OF PARTS REPLACED :-

• FOR ALL RUBBER, NYLON, PLASTIC PARTS, TYRES & BATTERY - 50%

• FOR FIBRE GLASS COMPONENTS - 30%

• FOR GLASS PARTS - NIL29

PRIVATE CAR – PACKAGE POLICYPRIVATE CAR – PACKAGE POLICY

4. RATES OF DEPRECIATION FOR ALL

OTHER PARTS (METALLIC) INCLUDING

WOODEN PARTS ARE ACCORDING TO

THE AGE OF THE VEHICLE AND ARE

SPECIFIED IN THE POLICY.

30


• EXCLUSIONS :EXCLUSIONS :

• THE INSURER SHALL NOT BE LIABLE TO THE INSURER SHALL NOT BE LIABLE TO MAKE ANY PAYMENT IN RESPECT OF :-MAKE ANY PAYMENT IN RESPECT OF :-

a)a) CONSEQUENTIAL LOSS, DEPRECIATION, CONSEQUENTIAL LOSS, DEPRECIATION, WEAR & TEAR, MECHANICAL AND WEAR & TEAR, MECHANICAL AND ELECTRICAL BREAKDOWN, FAILURES OR ELECTRICAL BREAKDOWN, FAILURES OR BREAKAGES;BREAKAGES;

31


b) DAMAGE TO TYRES & TUBES UNLESS THE VEHICLE IS DAMAGED AT THE SAME TIME IN WHICH CASE THE LIABILITY OF THE CO. SHALL BE LIMITED TO 50% OF THE COST OF REPLACEMENT;

c) ANY ACCIDENTAL LOSS OR DAMAGE IF THE VEHICLE IS BEING DRIVEN BY A PERSON UNDER THE INFLUENCE OF INTOXICATING LIQUOR OR DRUGS.

32

PACKAGE POLICY – PRIVATE CAR

• PROTECTION &

REMOVAL COST - Rs.1,500 (max)

AUTHORISATION

FOR REPAIR - Rs. 500 (max)

33


• SUM INSURED –

INSURED’S DECLARED VALUE (IDV) THIS VALUE IS FIXED AT THE

COMMENCEMENT OF EACH POLICY

PERIOD FOR THE INSURED VEHICLE

ON THE BASIS OF MANUFACTURER’S

LISTED SELLING PRICE OF THE

BRAND & MODEL (AGE OF VEHICLE)34


• SECTION –II T.P.LIABILITY

• COVER AS PER THIRD PARY LIABILITY POLICY

35


• SECTION –III P.A. COVER TO

OWNER DRIVER

COVERAGE SAME AS STUDIED IN

T.P.LIABILITY COVER

SUM INSURED - Rs.2,00,000

(FIXED)36


GENERAL EXCEPTIONS :- GENERAL EXCEPTIONS :-

1) ANY LOSS / LIABILITY INCURRED OUTSIDE THE “GEOGRAPHICAL AREA”

2) CONTRACTUAL LIABILITY

3) USE OF VEHICLE OTHER THAN AS PER “LIMITATIONS AS TO USE”

37

4) DRIVEN OTHER THAN AS PER “DRIVER CLAUSE”

5) ANY CONSEQUENTIAL LOSS

6) LIABILITY ARISING FROM RADIATION, RADIOACTIVE CONTAMINATION


38

7) USE OF NUCLEAR WEAPONS MATERIAL

8) WAR OR RELATED PERILS

9) COMPULSORY DEDUCTIBLE –

UPTO 1500 cc. Rs.500 per event

MORE THAN 1500cc 1000 per event


39


GENERAL CONDITIONSGENERAL CONDITIONS

1. WRITTEN NOTICE OF CLAIM

2. NO ADMISSION, OFFER OR PAYMENT WITHOUT WRITTEN APPROVAL

40


3. INDEMNITY – THE CO. MAY AT ITS OPTION REPAIR, REINSTATE OR REPLACE THE VEHICLE OR PARTS OR PAY IN CASH. THE LIABILITY NOT TO EXCEED :

a) FOR TOTAL LOSS / CTL – IDV LESS SALVAGE

b) FOR PARTIAL LOSS – COST OF REPAIRS LESS DEPRECIATION, LESS SALVAGE 41

4. VEHICLE TO BE MAINTAINED IN FIT

CONDITION AT ALL TIMES. AFTER

DAMAGE – AGGRAVATION NOT

COVERED.

5. CONDITION OF CANCELLATION

6. CONDITION OF CONTRIBUTION


42


7. CONDITION OF ARBITRATION

8. OBSERVANCE OF POLICY TERMS -A PRECONDITION TO LIABILITY ADMISSION

9. TRANSFER OF POLICY WITHIN 3 MONTHS FROM THE DATE OF DEATH OF INSURED

43

PACKAGE POLICYPACKAGE POLICY2 WHEELERS2 WHEELERS

• THE POLICY HAS FOLLOWING THREE SECTIONS :-

SECTION –I OWN DAMAGE SECTION –II THIRD PARTY LIABILITY SECTION –III PERSONAL ACCIDENT

COVER TO OWNER

DRIVER44

PACKAGE POLICY – 2 WHEELERSPACKAGE POLICY – 2 WHEELERS

• SECTION – I (OWN DAMAGE)

• COVERAGE SAME AS PER PRIVATE CAR PACKAGE POLICY - EXCEPT

1. THEFT OF ACCESSORIES NOT COVERED UNLESS THE VEHICLE IS STOLEN AT THE SAME TIME.

2. PROTECTION & REMOVAL (TOWING) MAXIMUM PAYBLE - Rs.300

45


3. AUTHORISATION FOR REPAIR – MAXIMUM - Rs.150

4. COMPULSORY DEDUCTIBLE - Rs.50

5. OTHER EXCLUSIONS SAME AS PER PRIVATE CAR POLICY

46


• SECTION – II THIRD PARTY LIABILITY

• SAME AS PER PRIVATE CAR POLICY EXCEPT –

• PROPERTY DAMAGE LIABILITY – Rs.6000 AS PER M.V.ACT

• CAN BE INREASED TO Rs.1 LAKH 47


• SECTION – III PERSONAL ACCDT. COVER TO OWNER DRIVER:-

• SAME AS PER PRIVATE CAR POLICY• LIMIT - Rs.1 LAC

48


• GENERAL EXCLUSIONS & POLICY CONDITIONS SAME AS PER PRIVATE CAR POLICY

49

PACKAGE POLICYPACKAGE POLICYCOMMERCIAL VEHICLECOMMERCIAL VEHICLE

• THE POLICY HAS FOLLOWING FOUR SECTIONS :-

SECTION –I OWN DAMAGE SECTION –II THIRD PARTY LIABILITY SECTION –III TOWING DISABLED VEHICLES SECTION – IV PERSONAL ACCIDENT

COVER TO OWNER

DRIVER50

PACKAGE POLICY FOR PACKAGE POLICY FOR COMMERCIAL VEHICLESCOMMERCIAL VEHICLES

• SECTION – I (OWN DAMAGE)

• SCOPE / TERMS OF COVER SAME AS PER PRIVATE CAR PACKAGE POLICY

• EXCEPT THE FOLLOWING :-

1. NO LIABILITY FOR DAMAGE CAUSED BY OVERLOADING OR STRAIN OF THE VEHICLE

51


2. NO LIABILITY FOR LOSS OF ACCESSORIES BY THEFT UNLESS THE VEHICLE IS STOLEN AT THE SAME TIME

3. PROTECTION AND REMOVAL CHARGES

3 WHEELERS Rs. 750

TAXIES Rs.1500

OTHERS Rs.2500

4. AUTHORISATION FOR REPAIRS Rs.50052


• SECTION –II THIRD PARTY LIABILITY

COVERAGE AS PER “THIRD PARTY LIABILITY ONLY” POLICY.

EXCLUSIONS :

THE POLICY WILL NOT BE LIABLE FOR:-a) INJURY/DEATH/DAMAGE CAUSED BEYOND

THE LIMITS OF ANY CARRIAGE WAY OR THOROUGH FARE. 53

PACKAGE POLICY PACKAGE POLICY COMMERCIAL VEHICLESCOMMERCIAL VEHICLES

b) DEATH / INJURY TO ANY PERSON IN THE COURSE OF HIS EMPLOYMENT EXCEPT AS PER W.C.ACT.

c) L.L. TOWARDS PERSON CARRIED IN THE VEHICLE. CONSIGNOR OF GOODS IS COVERED.

d) DAMAGE TO PROERTY BELONGING TO OR HELD IN TRUST OF THE INSURED OR BEING CARRIED IN THE VEHICLE.

54

PACKAGE POLICY PACKAGE POLICY COMMERCIAL VEHICLESCOMMERCIAL VEHICLES

e) DAMAGE TO ANY BRIDGE AND/OR VIADUCT &/OR TO ANY ROAD &/OR ANYTHING BENEATH BY VIBRATION / WEIGHT CARRIED BY THE VEHICLE.

f) DEATH / INJURY TO ANY PERSON WHO IS NOT AN EMPLOYEE OF THE INSURED AND NOT BEING CARRIED FOR HIRE OR REWARD.

55


SECTION –III, • TOWING DISABLED VEHICLES• ALLOWED PROVIDED

a) TOWING IS NOT FOR REWARD

b) NO LIABILITY FOR DAMAGE TO TOWED VEHICLE OR PROPERTY CARRIED IN IT

56


SECTION – IV

• PERSONAL ACCIDENT COVER TO OWNER DRIVER

• SAME AS PER LIABILITY ONLY POLICY

GENERL EXCEPTIONS

• SAME AS IN PVT CAR PACKAGE POLICY57


GENERAL CONDITIONS

• SAME AS PER PRIVATE CAR PACKAGE POLICY WITH FOLLOWING ADDITIONAL CONDITION :-

• “IN CASE OF PROPERTY DAMAGE, THE INS.CO. MAY PAY TO THE INSURED THE FULL AMOUNT OF THEIR LIABILITY AND RELINQUISH THE DEFENCE TO THE INSURED WHO WILL BEAR THE COST AND EXPENSES OF DEFENCE. 58

OTHER TYPES OF POLICIESOTHER TYPES OF POLICIES• THIRD PARTY + FIRE &/OR THEFT.

SECTION –I

• ANY LOSS OR DAMAGE TO THE VEHICLE DUE TO FIRE &/OR THEFT

• ALL OTHER SECTIONS, EXCLUSIONS, TERMS AND CONDITIONS ARE SAME

59

SPECIAL POLICIESSPECIAL POLICIES

TRADE POLICIES ISSUED TO MOTOR DEALERS OR DISTRIBUTORS OR ENGAGED IN THEIR OVERHAUL OR REPAIR.

TRADE CERTIFICATES ARE ISSUED BY TRANSPORT AUTHORITY

60

TRADE POLICIESTRADE POLICIES

• TWO TYPES OF POLICIES –

1) Motor trade package policy

(Road Risk) Risk coverage in

Public Place

2) Motor Trade Internal Risk

covers loss only within the

Insured’s business premises61

GENERAL REGULATIONSGENERAL REGULATIONS

• GR -1 INSURANCE NOT PROVIDED FOR:

Motor ins. in India to be conducted in

accordance with this tariff.

• GR -2 PROPOSAL FORM:

Specified Proposal Form is to be

submitted.

• GR -3 POLICY FORMS:

Policies to be issued only on Standard forms

62


• GR -3

A) TWO TYPES OF POLICIES:

1) LIABILITY ONLY POLICY

2) PACKAGE POLICY.

B) RATING :

RATES ARE PROVIDED IN

TARIFF. 100% LOADING FOR

ADVERSE CLAIMS EXPERIENCE. 63


• GR -4 EXTENSION OF GEO. AREA : Geographical Area is India, can be extended to Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka, Maldives on payment of extra premium.

• GR -5 VINTAGE CARS : Cars manf. Prior to 31-12-1940 and certified by Vintage & Classic Car Club of India 64

GENERAL REGUATIONSGENERAL REGUATIONS• GR -6 CLASSIC CARS:

Cars manf. Between 31-12-1940 &

31-12-1970 are considered by Club.

• GR -7 VALUED POLICIES:

Not permitted to issue “Agreed Valued

Policies except in case of Vintage

Cars.

65


• GR -8 INSURED’S DECLARED VALUE:

“IDV” is deemed to be the SUM

INSURED and valid through out

the policy period.

• GR -9 DEPRECIATION ON PARTS FOR

PARTIAL LOSS CLAIMS.

Scale of depreciation as per tariff.66

GENERAL REGULATIONSGENERAL REGULATIONS• GR-10 GEOGRAPHICAL ZONES : For rating purpose, India has been divided into following zones according to Registration office :- i) Private cars,2 wheelers & up to 6 passengers carrying vehicles for hire or reward (commercial) ZONE-A : Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune

67

GENERAL REGULATIONSGENERAL REGULATIONS• ZONE –B : Rest of India

• FOR OTHER VEHICLES :

ZONE –A : Chennai, Delhi/New Delhi

Kolkata, Mumbai

ZONE –B : All other State Capitals.

ZONE –C : Rest of India

68


• GR-11 PERIOD OF INSURANCE:

Maximum Period 12 months, further

extension for less than 12 months

on pro-rata allowed subject to

renewal with same insurer.

69


• GR-12 RATES FOR SHORT PERIOD

COVER:

For shorter period policies, scale is

provided in the tariff.

No “liability only policy” to be

issued for short period70


• GR-13 DISPLAY OF PREMIUM:

Own Damage and Liability premiums to be shown separately in the policy.

Similarly all loadings and discounts are to be shown separately.

71

GENERAL REGULATIONSGENERAL REGULATIONS• GR -14 COMPUTATION OF PREMIUM:

Premium payable to be computed

according to the tables given in the

tariff.

• GR -15 PAYMENT OF PREMIUM :

Full premium to be received before

commencement of cover.

No installments.72

GENERAL REGULATIONSGENERAL REGULATIONS• GR-16 MINIMUM PREMIUM : Minimum premium is Rs.100. Specially designed vehicles for handicapped persons is Rs.25.

• GR-17 TRANSFER OF VEHICLE: Liability cover is deemed to be automatically transferred to the

new owner from the date of transfer 73

GENERAL REGULATIONSGENERAL REGULATIONS• GR-17 contd.

OWN DAMAGE section shall be transferred ONLY on specific request subject to the following :-

Application within 14 days Consent of transferor Fresh proposal form Evidence of sale

74


Surrender of old Cert. of Insurance Inspection of the vehicle Transfer Fee of Rs.50 Recovery of No Claim Bonus.

• GR-18 CHANGE OF VEHICLE :

Substitution by same class of vehicle allowed on payment of difference of prem. However, proof of Liability Ins. Of earlier vehicle is required except T/L 75

GENERAL REGULATIONSGENERAL REGULATIONS• GR-19,20 & 21 VEHICLE SUBJECT TO

HIRE PURCHASE, LEASE OR

HYPOTHECATION:

Vehicle to be insured in the

name of registered owner and

not in joint names.

• GR-22 COVER NOTE:

To be issued in Form No.52.

Valid for 60 days, to be followed

by policy. 76

GENERAL REGULATIONSGENERAL REGULATIONS• GR-23 CERTIFICATE OF INSURANCE:

To be issued in Form No.51.

• GR-24 CANCELLATION & DOUBLE

INSURANCE :

A) Cancellation of policy :-

7 days notice from both sides; Provided no claim under the policy If by Ins. co., pro-rate adjustment

77


• GR-24 contd.

If by Insured, premium retention on short period basis.

Original Cert. of Ins. To be surrenderedInsured to give proof of Liability cover

extension.Insurer to inform RTA by recorded delivery

about cancellation of policy.78


• GR-24 contd.

B) DOUBLE INSURANCE : Later policy to be cancelled on pro-rata

refund of prem. Retention of Min. prem. Provided no claim under any policy. If both the policies with same insurer,

100% refund. If earlier policy to be cancelled, premium to

be retained on short period basis.79

GENERAL REGULATIONSGENERAL REGULATIONS• GR-25 CANCELLATION & ISSUANCE

OF FRESH CERT. OF INS.:

Following any change in the

policy, if a new cert. is to be

issued, charges Rs.50.

• GR-26 CERT./COVER NOTE

DESTROYED OR MUTILATED:

For issue of Duplicate, Rs.50

charges 80

GENERAL REGULATIONSGENERAL REGULATIONS• GR-27 NO CLAIM BONUS:

a) Allowed only after completion of 12

months continuous insurance;

a) Only on own damage premium;

b) Ranges from 20% to 50%(Max.)

c) Similar %age for all classes of vehicles. 81

GENERAL REGULATIONSGENERAL REGULATIONS• GR-27 contd.

e) No NCB on Motor Trade policies

f) In case of claim, NCB will reduce to zero

g) Entitlement is protected up to 90 days of date of expiry;

h) If the vehicle is sold and not replaced, entitlement preserved up to 3 years;

82

j) Co. owned vehicles if transferred to employ., using it exclusively, NCB can be transferred in his name;

k)In case of change of Insurer, proof of entitlement from previous insurer to be furnished.

i) On transfer of vehicle, NCB recovered or adjusted;

83


• GR-27 contd.

l) SUNSET CLAUSE :

If insured is entitled to 55% or 65% at

renewal between 1-7-2002 and 30-6-

2003, the same %age will be protected

until a claim arises in which case NCB

will revert to NIL.

84

GENERAL REGULATIONSGENERAL REGULATIONS• GR-28 AUTOMOBILE ASSOCIATION

MEMBERSHIP DISCOUNT :

5% of OD premium (Max.200/- for

Pvt. Car and 50/- for 2 wheelers)

Valid for period of membership

(on pro-rata basis)

• GR-29 DISCOUNT FOR VINTAGE CARS

25% ON OD prem. 85

GENERAL REGULATIONSGENERAL REGULATIONS• GR-30 DISC. FOR ANTI THEFT DEVICE:

2.5% ON OD prem.-Max.500/-

Provided device is approved by

ARAI, Pune and installation is

certified by any AAI.

• GR-31 CONCESSION FOR LAID-UP

VEHICLES:

Min. 2 consecutive months. Pro-

rata adjustment of premium. 86

GENERAL REGULATIONSGENERAL REGULATIONS• GR-32 MID TERM INCLUSION /

CANCELLATION OF EXTRA

BENEFITS:

Permitted once in policy period.

• GR-36 COMPULSORY PA COVER:

To Owner-Driver (Individual

only)

2 wheeler - Rs.1 lakhs - Rs. 50

Others - Rs.2 lakhs - Rs.10087


• GR-36 contd.

No such cover to companies or

owner not holding effective driving

license.

Owner having number of vehicles,

cover only at one vehicle at his

option.88

GENERAL REGULATIONSGENERAL REGULATIONS• GR-36 contd. OPTIONAL PA COVER TO PERSONS

OTHER THAN OWNER-DRIVER :

According to registered seating

capacity of the vehicle at rates

provided in the tariff.

• GR-37 VEHICLES IMPORTED WITHOUT

CUSTOM DUTY :

OD premium to be loaded by 30% 89


• GR-38 VEHICLES REQUISITIONED BY GOVERNMENT: Held covered. Losses paid in excess of amount paid by Govt.

• GR-39 TPPD COVER: Limit of cover for all vehicles other than 2 wheelers & Motor Trade (internal risk) Rs. 7.5 lakhs

90

GENERAL REGULATIONSGENERAL REGULATIONS • GR-39 contd.

For 2 wheelers Rs.1 lakh.

For statuary limits, discount in TP

premium allowed as per tariff.

Mid term change in limits not allowed.

• GR-40 COMPULSORY DEDUCTIBLES:

Amount to be compulsory deducted out

of OD claims according to the type of

vehicle as per tariff.91


GR-41 ELECTRICL /ELECTRONIC

FITTINGS :

Items not included in the Manf.’s

price can be covered under OD

section @ 4% of the value on

specific declaration.

GR-42 USE OF CNG / LPG FUEL:

Shall be covered on addl. Prem

@ 4% on the value of kit on specific

decl.92

MOTOR VEHICLE ACT,1988 MOTOR VEHICLE ACT,1988 IMPORTANT PROVISIONSIMPORTANT PROVISIONS

CHAPTER XCHAPTER X

NO FAULT LIABILITYNO FAULT LIABILITY SECTION – 140 :

FOR DEATH OR PERMANENT DISABLEMENT OF THIRD PARTY, THE OWNER OF VEHICLE IS LIABLE TO PAY COMPENSATION.

93

TO CLAIM UNDER THIS SEC., THE CLAIMENT IS NOT REQUIRED TO PROOVE WRONGFUL ACT, NEGLECT OR DEFAULT OF VEHICLE OWNER.

COMPENSATION FOR DEATH Rs.50,000

FOR PERMANENT DISABLEMENT Rs.25,000

94

MOTOR VEHICLE ACT,1988MOTOR VEHICLE ACT,1988• SECTION – 147 :

LIMIT OF LIABILITY THE INSURANCE POLICY SHALL COVER

THE FOLLOWING LIMITS :-

DEATH / INJURY (SEC.II-I (ii) )

UNLIMITED PROPERTY DAMAGE

MIN. Rs.6,000

SECTION – 149 : DUTY OF INSURERS TO SATISFY

JUDGEMENTS & AWARDS AGAINST PERSONS INSURED IN RESPECT OF THIRD PARTY RISKS.95

MOTOR VEHICLE ACT,1988MOTOR VEHICLE ACT,1988

SECTION – 151 : INSURED IS BOUND TO DISCLOSE

INSURANCE PARTICULARS TO THE THIRD PARTY AND INSURER IS BOUND TO GIVE THE POLICY DOCUMENTS TO INSURED PARTY.

SECTION – 152 :NO SETTLEMENT BETWEEN INSURER AND

INSURED IS EFFECTIVE UNLESS THIRD PARTY IS ALSO MADE A PARTY TO THE SETTLEMENT.

96

MOTOR VEHICLE ACT,1988MOTOR VEHICLE ACT,1988• SECTION – 155 : IN CASE OF DEATH OF INSURED, THE T.P.

CLAIM IS EFFECTIVE AGAINST INSURED’S ESTATE OR LEGAL HEIRS OF INSURERS.

• SECTION – 157 : IN CASE OF TRANSFER OF VEHICLE, T.P.

INS. IS AUTOMATICALLY DEEMED TO HAVE BEEN TRANSFER IN THE NAME OF NEW OWNER.

97

MOTOR VEHICLE ACT,1988MOTOR VEHICLE ACT,1988

• SECTION -161:

SPECIAL PROVISIONS AS TO COMPENSATION IN CASE OF “HIT & RUN” MOTOR ACCIDENTS :

COMPENSATION FOR DEATH Rs.25,000 (FIXED)

GREVIOUS HURT Rs.12,500 (FIXED) 98

• SECTION -163 A : SCHEME OF COMPENSATION FOR “HIT & RUN” CASES IS BEING ADMINISTERED BY “GIC” AND ALL GENERAL INSURANCE COS. CONTRIBUTE TO THIS SCHEME.

• SECTION – 163 B :

COMPENSATION CAN BE CLAIMED EITHER UNDER SEC.140 (NO FAULT LIAB.) OR UNDER SEC.163A (HIT & RUN)

MOTOR VEHICLE ACT - 1988MOTOR VEHICLE ACT - 1988

99

MOTOR VEHICLE ACT,1988MOTOR VEHICLE ACT,1988• SECTION – 165 : CLAIMS TRIBUNALST.P. CLAIMS CAN BE ADJUDICATED UPON

ONLY BY MOTOR ACCIDENT CLAIMS TRIBUNALS (MACT) CONSTITUTED BY STATE GOVTS.

• SECTION -173 : APPEALSANY PERSON AGGRIEVED BY AN AWARD

OF MACT MAY, WITHIN 90 DAYS FROM THE DATE OF AWARD, PREFER AN APPEAL TO THE HIGH COURT. 100

MOTOR VEHICLE ACT,1988MOTOR VEHICLE ACT,1988 CHAPTER – XI INSURANCE OF VEHICLES AGAINST T.P. RISK

SECTION – 146 : NO VEHICLE CAN BE USED IN A “PUBLIC PLACE”

WITHOUT HAVING INSURED AGAINST T.P. RISK.

VEHICLES OWNED BY CENTRAL &/OR STATE GOVTS. ARE EXEMPTED.

THE GOVT. MY FURTHER EXEMPT VEHICLES OWNED BY LOCAL AUTHORITIES PROVIDED A FUND IS EXTABLISHED BY THAT AUTH. TO MEET T.P. RISK. 101

RATINGRATING PRIVATE CAR TYPE VEHICLES PRIVATE CAR TYPE VEHICLES

• SECTION –I OWN DAMAGE1. RATING FACTORS:-

i. IDV (GR-8)

ii. CUBIC CAPACITY

iii. GEOGRAPHICAL ZONES (GR-10)

iv. AGE OF THE VEHICLE (GR-8)

2. MINIMUM VALUES FOR THE PURPOSE OF COMPUTATION OF PREMIUM :-

i. NOT EXCEEDING 1000 cc Rs.15,000

ii. 1000cc TO 1500cc 20,000

iii. EXCEEDING 1500cc 30,000 102

RATING RATING PRIVATE CAR TYPE VEHICLESPRIVATE CAR TYPE VEHICLES

3. PREMIUM CHART

103

RATING RATING PRIVATE CAR TYPE VEHICLE PRIVATE CAR TYPE VEHICLE

4. ADDITIONAL PREMIUM FOR CNG / LPG FUEL (GR-42)

5. ADDITIONAL PREMIUM FOR ELECT. / ELECTRONIC ITEMS (GR-41)

6. DISCOUNTS :- i. AUTOMOBILE ASSOCIATION (GR-28) ii. ANTI – THEFT DEVICES (GR-30) iii. VINTAGE CAR (GR-29) iv. VOLUNTARY DEDUCTIBLE (GR-40) v. NO CLAIM BONUS (GR-27)

104

RATING RATING PRIVATE CAR TYPE VEHICLEPRIVATE CAR TYPE VEHICLE

SECTION – II

• THIRD PARTY LIABILITY PREMIUM• UPTO 1000cc Rs.500• 1000cc TO 1500cc Rs.600• EXCEEDING 1500cc Rs.700• ADDITIONAL PREMIUM :- i. USE OF CNG / LPG Rs. 60 ii. PA TO OWNER-DRIVER Rs.100 iii. PA TO UN-NAMED PASS. Rs. 50 (PER HEAD ACCORDING TO SEATING CAPACITY)

105

RATING RATING PRIVATE CAR TYPE VEHICLESPRIVATE CAR TYPE VEHICLES

• iv. L.L. TO PAID DRIVER / CLEANER ( PER HEAD) Rs. 25 LIMITATIONS AS TO USE :-

USE ONLY FOR SOCIAL, DOMESTIC AND PLEASURE PURPOSES AND FOR THE INSURED’S BUSINESS OR PROFESSION.

POLICY DOES NOT COVER :-

USE FOR HIRE OR REWARD, ORGANISED RACING, PACE MAKING, SPEED TESTING, RELIABILITY TRIALS, MOTOR TRADE, CARRIAGE OF GOODS (OTHER THAN SAMPLES OR PERSONAL BAGGAGE) 106

RATINGRATING PRIVATE CAR TYPE VEHICLES PRIVATE CAR TYPE VEHICLES

• WHO CAN DRIVE( DRIVER CLAUSE)

• ANY PERSON INCLUDING THE INSURED;

• PROVIDED THAT A PERSON DRIVING HOLDS AN EFFECTIVE DRIVING LICENCE AT THE TIME OF ACCIDENT AND IS NOT DISQUALIFIED FROM HOLDING OR OBTAINING SUCH A LICENCE.

• A PERSON HOLDING AN EFFECTIVE LERNER;S LICENCE MAY ALSO DRIVE THE VEHICLE PROVIDED HE SATISFIES THE REQUIREMENTS OF RULE 3 OF THE CENTRAL MOTOR VEHICLE RULES, 1989.

107

RATINGRATING MOTORISED TWO WHEELERS MOTORISED TWO WHEELERS

• SECTION – I OWN DAMAGE

1. RATING FACTORS :- SAME AS PRIVATE CARS

2. MINIMUM VALUES FOR THE PURPOSE OF COMPUTATION OF PREMIUM:-

NOT EXCEEDING 150cc Rs.5,000 EXCEEDING 150cc TO 350cc 6,000 EXCEEDING 350cc 7,000

108

RATING RATING MOTORISED TWO WHEELERSMOTORISED TWO WHEELERS

3. PREMIUM RATES AS PER CHART

109

RATINGRATING MOTORISED TWO WHEELERS MOTORISED TWO WHEELERS

4. ADDITIONAL PREMIUM FOR CNG / LPG FUEL AS PER GR-42.

5. ADDL. PREMIUM FOR ELEC./ ELECTRONIC ITEMS AS PER GR-41.

6. LOSS OF ACCESSORIES BY THEFT @ 3% OF THE VALUE OF ACCESSORIES SUBJECT TO MIN. Rs.50.

110

RATING MOTORISED TWO WHEELERS

7. DISCOUNTS :-

I. 25% DISCOUNT ON OD PREMIUM AFTER LOADING FOR ITEMS 4 & 5 ABOVE IF VEHICLE USED WITH SIDE CAR.

II. ALL OTHER DISCOUNTS SAME AS IN PRIVATE CARS.

111

RATING RATING MOTORISED TWO WHEELERSMOTORISED TWO WHEELERS

• SECTION –II T.P.LIABILITY COVER

• PREMIUM :

NOT EXCEEDING 75cc Rs.135

> 75cc TO 150cc 160

> 150cc TO 350cc 175

> 350cc 190

112

o THE OWNER-DRIVER IS THE

REGISTERED OWNER OF THE

INSURED VEHICLE;

o THE OWNER-DRIVER IS THE

INSURED NAMED IN THE POLICY;

o THE OWNER-DRIVER HOLDS AN

EFFECTIVE DRIVING LICENSE AT

THE TIME OF ACCIDENT.113

RATING RATING COMMERCIAL VEHICLESCOMMERCIAL VEHICLES

• FOR RATING PURPOSE, CVs ARE CLASSIFIED INTO FOLLOWING CATAGORIES:-

CLASS CATEGORY• GOODS CARRYING A1 & A2• TRAILERS B• PASSENGER CARRYING C• MISC. & SPECIAL TYPE D• MOTOR TRADE E,F,G 114

RATING – COMMERCIAL VEHICLESRATING – COMMERCIAL VEHICLES

• RATING FACTORS :

IDV ZONE AGE OF VEHICLE GROSS VEHICLE WEIGHT (GVW) /

LICENSED CARRYING CAPACITY

115

RATING – COMMERCIAL VEHICLESRATING – COMMERCIAL VEHICLES

• RATING IS AS PER TARIFF

116

DOCUMENTSDOCUMENTS

PROPOSAL FORM

1. PARTICULARS ABOUT THE PROPOSER;2. DETAILS OF VEHICLE TO BE INSURED;3. DETAILS OF OTHER VEHICLES OWNED;4. DETAILS OF INSURANCE HISTORY;5. PREVIOUS CLAIMS;6. EXTRA BENEFITS;7. DECLARATION.8. SIGNATURES

117

DOCUMENTSDOCUMENTS

• CERTIFICATE OF INSURANCE

• AN EVIDENCE THAT A MOTOR VEHICLE IS INSURED AGAINST T.P.LIABILITY AS REQUIRED UNDER M.V.ACT,1988.

• CONTENTS:-a) CERTIFICATE NUMBER;b) DESCRIPTION OF THE VEHICLEc) COMMENCEMENT & EXPIRY DATES OF

INS118

DOCUMENTSDOCUMENTS

• CLASSES OF PERSONS ENTITLED TO DRIVE;

• LIMITATIONS AS TO USE;• FOLLOWED BY A CERTIFICATE FROM AN

AUTHORISED REPRESENTATIVE OF INS. CO. THAT THIS DOC. HAS BEEN ISSUED IN ACCORDANCE WITH M.V.ACT-1988

• SIGNATURE. IN CASE OF LOST OR DESTROYED CERT.,

DUPLICATE TO BE ISSUED ON CHARGES OF RS.50

119

DOCUMENTSDOCUMENTS

• COVER NOTE

120

MOTOR UNDERWRITING

• THE NEED:• INCREASE IN THE NUMBER OF VEHICLES,

TRAFFIC DENSITY, HIGHER CLAIMS COST FOR OWN DAMAGE AND THIRD PARTY CLAIMS:

• NECESSITY TO CONTROL THE CLAIMS COST

• HENCE A SOUND UNDERWRITING POLICY IS THE NEED OF THE HOUR.

121

MOTOR UNDERWRITING

• SOUND UNDERWRITING MEANS:-

a) CAREFUL SELECTION OF RISK

a) IMPOSING CERTAIN TERMS AND CONDITIONS

b) AND CONTINOUS MONITORING OF RISK.

122

MOTOR UNDERWRITING

• STEPS FOR SOUND UNDERWRITING :

(A) SCREENING OF COMPLETE PROPOSAL FORM FOR CONSIDERATION OF:-

1) TYPE OF VEHICLE2) USE OF THE VEHICLE3) GEOGRAPHICAL AREA OF OPERATIONS4) THE DRIVER5) NO CLAIM DISCOUNT6) PAST CLAIMS EXPERIENCE7) MORAL HAZARD

123

MOTOR UNDERWRITING

(B) TO MAINTAIN STATISTICAL RECORDS.(C) SOME IMPORTANT GUIDELINES :-

1) FOR OLD VEHICLES, ONLY RESTRICTED OR TPL COVER OR INSPECTION BE CARRIED OUT BEFORE INSURANCE;

2) INSPECTION NECESSARY IN CASE OF BREAK IN INSURANCE OR CHANGE FROM TPL COVER TO PACKAGE POLICY;

124

MOTOR UNDERWRITING

3) PROPER FIXING OF IDV;4) SPORTS CARS AT GREATER RISK (high

speed).5) PVT. CARS A BETTER RISKS THAN TAXIS6) OWNER DRIVEN TAXIS BETTER THAN

HIRER DRIVEN;7) LIMITED AREA OF OPERATION OR WIDER

AREA8) AGE OF THE DRIVER (YOUNG MORE

PRONE TO RASH DRIVING;

125

MOTOR UNDERWRITING

9) ANY SERIOUS VISION DEFECT;

10) DRIVING HABBITS / OFFENCES;

11) NCB IS INDICATIVE OF CAREFUL DRIVING;

12) NUMBER & TYPES OF CLAIMS

13) ATTITUDE ESPECIALY AFTER A LOSS;

14) LOSS EXPERIENCE OF A PARTICULAR AGENT / MAKE MODEL / CLAIM RATIO etc.

126

MOTOR CLAIMS OWN DAMAGE

127

CLAIMS OWN DAMAGE

1. INSURED TO GIVE WRITTEN INTIMATION OF LOSS TO INS. CO.

2. TO REMOVE THE VEHICLE TO WORKSHOP & GET THE REPAIR ESTIMATE PREPARED.

3. INS.CO. TO CHECK THE POLICY COVERAGE & ITS VALIDITY

4. REGISTRATION OF CLAIM BY CO.

5. APPOINTMENT OF MOTOR SURVEYOR

128

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CLAIMS OWN DAMAGE

1. INSURD TO GIVE WRITTEN INTIMATION OF LOSS TO INS. CO.





138

CLAIMS – OWN DAMAGE

6. SURVEYOR TO INSPECT THE VEHICLE IN WORKSHOP & DISCUSS WITH THE REPAIRER / INSURED REG. COST OF REPAIRS NECESSARY ACCORDING TO THE CAUSE OF ACCIDENT.

7. SURVEYOR ALSO COLLECT DULY COMPLETED CLAIM FORM & VERIFIES ORIGINAL R.C., D/L & POLICY

8. FOR MINOR CLAIMS CO. ENGINEER CAN ASSESS THE LOSS

139


9. SURVEYOR / ENGINEER SUBMITS HIS ASSESSMENT REPORT TO THE INS.CO.

10. ON THE OTHER SIDE THE VEHICLE IS REPAIRED & DELIVERED TO THE INSURED ON PAYMENT.

11. ORIGINAL REPAIR BILLS & PAYMENT RECEIPT IS SUBMITTED TO THE INS.CO.

12. AFTER STUDY CLAIM IS APPROAVED & A DISCHARGE VOUCHER IS RELEASED.

140


13. CLAIM AMOUNT SANCTIONED IS AFTER DEDUCTING DEPERICIATION ON PARTS REPLACED & THE AMOUNT OF EXCESS.

14. COLLECTION OF SALVAGE IF VALUE NOT DEDUCTED.

15. ON RECEIPT OF DISCHARGED VOUCHER PAYMENT IS RELEASED TO INSURED BY CHEQUE.

16. NOWADAYS, MANY COS. ARE PROVIDING CASH LESS FACILITY TO THEIR CLIENTS.

141


17. UNDER THIS SYSTEM, THE REPAIRER WILL RELEASE THE VEHICLE AFTER TAKING THE AMOUNT OF DEPRECIATION AND EXCESS ALONG WITH A SATISFACTION VOUCHER FROM THE CLIENT.

18. BALANCE PAYMENT ( LIABILITY OF THE CO.) SHALL BE PAID DIRECTLY BY THE INS. CO. TO THE REPAIRER.

142


• CLAIM DOCUMENTS :- COMMON FOR ALL VEHICLES1. DULY COMPLETED CLAIM FORM2. ORIGINAL R.C. for verification3. ORIGINAL D.L. for verification4. COPY OF POLICE REPORT (if lodged)5. SURVEY REPORT6. ORIGINAL REPAIR BILL & PAYMENT RECEIPT.

143


ADDITIONAL DOCUMENTS FOR COMMERCIAL VEHICLES:

1. ORIGINAL FITNESS CERT. for verification

2. ORIGINAL ROUTE PERMIT for verification

3. LOAD CHALLAN for goods carrying vehicle

4. SPOT SURVEY REPORT.

144


• TOTAL LOSS CLAIM SETTLEMENT:1. ON TOTAL LOSS BASIS :- IF THE REPAIR COST IS 75% OR MORE OF

IDV. FULL IDV OF THE VEHICLE IS PAID AND

SALVAGE IS TAKEN OVER BY THE CO. FOR DISPOSING IT OFF.

ORIGINAL POLICY, R.C., KEYS, TRANSFER FORMS & OTHER DOCUMENTS OF THE VEHICLE ARE COLLECTED

145


2. CASH LOSS SETTLEMENT : IN CASE OF MAJOR LOSSES WHERE THE

REPAIR COST IS VERY HIGH, A NET AMT. IS OFFERED ON COMPROMISE BASIS WITHOUT INSISTING FOR REPAIRS & COLLECTION OF SALVAGE.

THE INSURED CAN GET THE VEHICLE REPAIRED BY USING 2ND HAND PARTS OR PARTS PURCHSED FROM GREY MARKET.

146


3. THEFT CLAIMS : TOTAL IDV IS PAYABLE SUBJECT TO

COLLECTION OF :-1. ORIGINAL POLICY2. FIR3. FINAL (UNTRACE) REPORT OF POLICE4. ORIGINAL R.C. DULY TRANSFERRED IN

THE NAME OF THE CO.5. FULL SET OF KEYS6. COPY OF REGISTERED LETTER TO RTO

INFORMING THEFT OF THE VEHICLE

147


• CONTENTS OF MOTOR SURVEY REPORT:

1. DETAILS OF INSURED & VEHICLE

2. DETAILS OF POLICY

3. OCCURRENCE DETAILS / CAUSE

4. PHOTOGRAPHS

5. CHECK LIST OF ALL ORIGINAL DOCTS.

6. ANY SPECIAL FEATURES OBSERVED

7. COMMENTS ON INSURERS LIABILITY

148


8. ASSESSMENT DETAILS –

LABOUR COST REPLACEMENT COST OF PARTS DEPRECIATION DEDUCTIBLE SALVAGE NET LOSS AMOUNT

149

CLAIMS – THIRD PARTY

• USE OF A MOTORISED VEHICLE IN A PUBLIC PLACE CAN GIVE RISE TO ACCIDENT WHICH MAY RESULT INTO DEATH OR BODILY INJURY &/OR PROPERTY DAMAGE OF THIRD PARTY,

• DUE TO ACCIDENT, TWO TYPES OF LIABILITIES ARISES.

• ONE IS CRIMINAL LIABILITY & THE OTHER IS CIVIL LIABILITY.

• FOR CRIMINAL LIABILITY, IT IS THE STATE THAT INITIATES PROCEEDINGS

150


• FOR CIVIL LIABILITY, IT IS THE VICTIM OR HIS REPRESENTATIVES HAS TO FILE A CLAIM FOR COMPENSATION.

• THIS CLAIM CAN BE FILED IN ANY M.A.C.T./ W.C. COURT WITH JURISDICTION ON THE

a) PLACE OF ACCIDENT

b) PLACE OF RESIDENCE OR BUSINESS OF THE CLAIMANT OR

c) THE RESIDENCE OF DEFENDANT.

d) NO TIME LIMIT TO FILE THE CLAIM.

151


• MOTOR ACCIDENT CLAIMS TRIBUNALS (MACT) HAVE BEEN SPECIALLY SET UP FOR THIRD PARTY CLAIMS FOR SPEEDY AND COST EFFECTIVE TRAILS.

• NO OTHER CIVIL COURT IS EMPOWERED TO DEAL WITH THESE CLAIMS.

• MACT HAS THE SAME POWERS AS THOSE OF CIVIL COURTS.

152


• CLAIM PROCEEDURE ADOPTED BY INSURERS :-

• INTIMATION OF CLAIM IS EITHER RECEIVED FROM THE INSURED OR THROUGH NOTICE FROM THE MACT.

• AFTER SATISFYING WITH THE COVERAGE, A CLAIM IS REGISTERED IN THE BOOKS WITH A PROPER PROVISION OF ESTIMATED LIABILITY.

• AN ADVOCATE ON CO’S PANEL IS APPOINTED BEFORE THE NEXT DATE.

153


• DOCUMENTS / INFORMATION COLLECTED:

1. POLICY COPY

2. CLAIM FORM

3. DRIVER’S LICENSE

4. FIR

5. DRIVER/ WITNESSES STATEMENT

6. POST MORTEM REPORT (FATAL CLAIMS)

7. MEDICAL REPORT (INJURY CLAIMS)

8. DRIVER & OWNER TO CO-OPERATE

154


• BASIS OF COMPENSATION FOR FATAL CLAIMS :

VICTIM’S AGE / PHYSICAL CONDITION OCCUPATION MONTHLY INCOME (FOR NON-EARNING

PERSON, SPECIFIED NOTIONAL INCOME) CONTRIBUTION TO THE FAMILY RELATIONSHIP WITH THE CLAIMANT MEDICAL & FUNERAL EXPENSES etc.

155


• COMPENSATION FOR INJURY CLAIMS MEDICAL, SURGICAL AND

HOSPITALISATION EXPENSES LOSS OF SALARY AND INCOME TO BE SUPPORTED BY BILLS & VOUCHERS

156


• GENERAL DAMAGES: PAIN & SUFFERINGS, MENTAL & NERVOUS SHOCK, LOSS OF AMENITIES OF LIFE, LOSS OF ENJOYMENT OF LIFE CONTINUED IMPAIRMENT OF HEALTH, LOSS OF PROSPECTIVE EARNINGS, LOSS OF MATRIMONIAL PROSPECTS etc. INTEREST ON AMOUNT OF AWARD.

157


• LOK ADALAT SETTLEMENTS : SETTLEMENT OF DISPUTES THROUGH

CONCILIATION AND COMPROMISE. CASES WHICH ARE PENDING IN MACT

COURTS CONDITION – BOTH PARTIES SHOULD

AGREE FOR SETTLEMENT DECISION IS BINDING ON BOTH THE

PARTIES – NO APPEAL PRESIDED BY A SITTING OR RETIRED

JUDGE WITH TWO OTHER MEMBERS

158


• JALD RAHAT YOJNA (JRY): MENT FOR NON-FATAL INJURY CLAIMS. APPLICABLE TO VICTIMS OF 18 YEARS AND

ABOVE. NO NEED TO GO TO MACT. DIRECTLY APPROACHES THE INS.CO. AMOUNT OF COMPENSATION TO BE

SUPPORTED BY MEDICAL CERT. & EXPENSES BILLS

IF OFFER NOT ACCEPTABLE, CAN GO TO MACT FOR TRADITIONAL PROCESS.

159


• NO FAULT LIABILITY FALLS UNDER SEC.140-144 NO NEED TO PROVE ANY NEGLIGENCE OR

DEFAULT OF OWNER OR DRIVER. ONLY INCIDENT PROOF SUFFICIENT FIXED COMPENSATION

FOR DEATH- 50,000/-

PERMANENT DISABLEMENT 25,000/- IT IS A INTERIM RELIEF

160


CLAIM CAN FURTHER BE FILED IN MACT ON THE BASIS OF FAULT LIABILITY UNDER SEC.166.

HOWEVER, THE INTERIM RELIEF WOULD BE DEDUCTED FROM THE FINAL AWARD.

NO RECOVERY IN CASE OF LOWER AWARD.

161


• HIT & RUN CASES CASES WHERE THE IDENTITY OF THE

MOTOR VEHICLE CANNOT BE ASCERTAINED.

UNDER SEC. 161 FIXED COMPENSATION

FOR DEATH- 25,000/-

PERMANENT DISABLEMENT 12,500/- PAYMENT FROM SOLATIUM FUND. CREATED BY EQUAL SHARING FROM

CENTRAL/STATE GOVTS. AND INSURERS.

162


• INDIA MOTOR INSURANCE POOL (THIRD PARTY POOL)

• NEED TO CREAT THIS POOL TO ABSORB VERY HIGH CLAIMS RATIO IN THIRD PARTY LIABILITIES.

• UNDER THIS SYSTEM ALL T.P. PREMIUM OF COMMERCIAL VEHICLES WILL BE COLLECTED IN THIS POOL AND CLAIMS WILL BE PAID THEREFROM.

• THIS POOL IS CONTROLLED BY G.I.C.

163


• ALL THE GENERAL INSURANCE COMPANIES

WHAT EVER TP PREMIUM OF COMMERCIAL VEHICLES THEY COLLECT IS SENT TO THE POOL.

THE CLAIMS ON THIRD PARTY MOTOR LIABILITIES ARE TO BE SHARED AMONG THE INSURERS ON THE BASIS OF THEIR RESPECTIVE MARKET SHARES IN THE BUSINESS.

COLLECTION IN 2007-08 OF Rs.2,800 crs.

164

motor insurance i

Documents

general regulations

repair estimate

electronic

give written

short period

death injury

policy coverage

private car