Best of Motor Ins Full Detail

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

INSURANCE

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

PRINCIPLES

UTMOST GOOD FAITH

INSURABLE INTEREST

INDEMNITY

SUBROGATION

CONTRIBUTION

PROXIMATE CAUSE

5

TYPES 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 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

OF

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

INSURANCE

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 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 POLICIES

LIABILITY ONLY POLICY (THIRD PARTY)

PACKAGE POLICY

T.P.+ FIRE & THEFT

FIRE & THEFT ONLY

14

LIABILITY ONLY POLICY

APPLICABLE TO ALL CLASSES OF

VEHICLES WITH SUITABLE CHANGES

IN LIMITATIONS AS TO USE.

15

SCOPE OF COVER COVERS INSUREDS 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 CLAIMANTS COST &

EXPENCES.

INCLUDING INSUREDS 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 INSUREDS 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

TERMS AND RIGHTS OF

RECOVERY

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

TO 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

PROVIDED

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 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 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 ARBITRATION 24

PACKAGE POLICY

PRIVATE 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 CAR


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 / ROCKSLIDE 28

PRIVATE 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 - NIL 29


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 :

THE INSURER SHALL NOT BE LIABLE TO

MAKE ANY PAYMENT IN RESPECT OF :-

a) CONSEQUENTIAL LOSS, DEPRECIATION,

WEAR & TEAR, MECHANICAL AND

ELECTRICAL BREAKDOWN, FAILURES

OR 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


PROTECTION &

REMOVAL COST - Rs.1,500 (max)

AUTHORISATION

FOR REPAIR - Rs. 500 (max)

33


SUM INSURED

INSUREDS DECLARED VALUE (IDV)

THIS VALUE IS FIXED AT THE

COMMENCEMENT OF EACH POLICY

PERIOD FOR THE INSURED VEHICLE

ON THE BASIS OF MANUFACTURERS

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 :-

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 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 POLICY

2 WHEELERS

THE POLICY HAS FOLLOWING THREE

SECTIONS :-



SECTION III PERSONAL ACCIDENT

COVER TO OWNER

DRIVER 44

PACKAGE 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



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 POLICY COMMERCIAL VEHICLE

THE POLICY HAS FOLLOWING FOUR

SECTIONS :-



SECTION III TOWING DISABLED VEHICLES

SECTION IV PERSONAL ACCIDENT

COVER TO OWNER

DRIVER

50

PACKAGE POLICY FOR

COMMERCIAL VEHICLES

SECTION I (OWN DAMAGE)

SCOPE / TERMS OF COVER SAME AS PER


EXCEPT THE FOLLOWING :-

1. NO LIABILITY FOR DAMAGE CAUSED BY

OVERLOADING OR STRAIN OF THE

VEHICLE 51

PACKAGE POLICY FOR

COMMERCIAL VEHICLES

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.500 52

PACKAGE POLICY FOR

COMMERCIAL VEHICLES


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

COMMERCIAL 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

COMMERCIAL 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

PACKAGE POLICY FOR

COMMERCIAL VEHICLES

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

PACKAGE POLICY FOR

COMMERCIAL VEHICLES

SECTION IV

PERSONAL ACCIDENT COVER TO OWNER

DRIVER

SAME AS PER LIABILITY ONLY POLICY

GENERL EXCEPTIONS

SAME AS IN PVT CAR PACKAGE POLICY 57

PACKAGE POLICY FOR

COMMERCIAL VEHICLES

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 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 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 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

Insureds business premises

61

GENERAL 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

GENERAL REGULATIONS

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

GENERAL REGULATIONS

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 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

GENERAL REGULATIONS

GR -8 INSUREDS 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 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 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

GENERAL REGULATIONS

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

GENERAL REGULATIONS

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 period 70

GENERAL REGULATIONS

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 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 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 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

GENERAL REGULATIONS

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 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 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

GENERAL REGULATIONS

GR-24 contd.

If by Insured, premium retention on short

period basis.

Original Cert. of Ins. To be surrendered

Insured to give proof of Liability cover

extension.

Insurer to inform RTA by recorded delivery

about cancellation of policy.

78

GENERAL REGULATIONS

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 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 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 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

GENERAL REGULATIONS

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 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 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 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.100 87

GENERAL REGULATIONS

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 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

GENERAL REGULATIONS

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 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

GENERAL REGULATIONS

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

IMPORTANT PROVISIONS

CHAPTER X

NO 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,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


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


SECTION 155 :

IN CASE OF DEATH OF INSURED, THE T.P.

CLAIM IS EFFECTIVE AGAINST INSUREDS

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


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 - 1988

99


SECTION 165 : CLAIMS TRIBUNALS

T.P. CLAIMS CAN BE ADJUDICATED UPON

ONLY BY MOTOR ACCIDENT CLAIMS

TRIBUNALS (MACT) CONSTITUTED BY

STATE GOVTS.

SECTION -173 : APPEALS

ANY 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,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

RATING

PRIVATE CAR TYPE VEHICLES

SECTION I OWN DAMAGE 1. 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


3. PREMIUM CHART

103

RATING

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

PRIVATE 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


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 INSUREDS 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

RATING


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

RATING

MOTORISED TWO WHEELERS


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


3. PREMIUM RATES AS PER CHART

109

RATING


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


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


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

COMMERCIAL 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 VEHICLES

RATING FACTORS :

IDV

ZONE

AGE OF VEHICLE

GROSS VEHICLE WEIGHT (GVW) /

LICENSED CARRYING CAPACITY

115

RATING COMMERCIAL VEHICLES

RATING IS AS PER TARIFF

116

DOCUMENTS

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

DOCUMENTS

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 VEHICLE

c) COMMENCEMENT & EXPIRY DATES OF INS

118

DOCUMENTS

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

DOCUMENTS

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 VEHICLE

2) USE OF THE VEHICLE

3) GEOGRAPHICAL AREA OF OPERATIONS

4) THE DRIVER

5) NO CLAIM DISCOUNT

6) PAST CLAIMS EXPERIENCE

7) 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 TAXIS

6) OWNER DRIVEN TAXIS BETTER THAN HIRER DRIVEN;

7) LIMITED AREA OF OPERATION OR WIDER AREA

8) 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

CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







129

CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







130

CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







131

CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







132

CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







133

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CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







134

CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







135

CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







136

CLAIMS OWN DAMAGE


OF LOSS TO INS. CO.







137

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

CLAIMS OWN DAMAGE

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

CLAIMS OWN DAMAGE

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

CLAIMS OWN DAMAGE

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

CLAIMS OWN DAMAGE

CLAIM DOCUMENTS :-

COMMON FOR ALL VEHICLES

1. DULY COMPLETED CLAIM FORM

2. ORIGINAL R.C. for verification

3. ORIGINAL D.L. for verification

4. COPY OF POLICE REPORT (if lodged)

5. SURVEY REPORT

6. ORIGINAL REPAIR BILL & PAYMENT

RECEIPT.

143

CLAIMS OWN DAMAGE

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

CLAIMS OWN DAMAGE

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

CLAIMS OWN DAMAGE

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

CLAIMS OWN DAMAGE

3. THEFT CLAIMS :

TOTAL IDV IS PAYABLE SUBJECT TO COLLECTION OF :-

1. ORIGINAL POLICY

2. FIR

3. FINAL (UNTRACE) REPORT OF POLICE

4. ORIGINAL R.C. DULY TRANSFERRED IN THE NAME OF THE CO.

5. FULL SET OF KEYS

6. COPY OF REGISTERED LETTER TO RTO INFORMING THEFT OF THE VEHICLE

147

CLAIMS OWN DAMAGE

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

CLAIMS OWN DAMAGE

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

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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 COS PANEL IS

APPOINTED BEFORE THE NEXT DATE. 153

CLAIMS THIRD PARTY

DOCUMENTS / INFORMATION COLLECTED:

1. POLICY COPY

2. CLAIM FORM

3. DRIVERS 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

CLAIMS THIRD PARTY

BASIS OF COMPENSATION FOR FATAL

CLAIMS :

VICTIMS 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

CLAIMS THIRD PARTY

COMPENSATION FOR INJURY CLAIMS

MEDICAL, SURGICAL AND

HOSPITALISATION EXPENSES

LOSS OF SALARY AND INCOME

TO BE SUPPORTED BY BILLS & VOUCHERS

156

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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

CLAIMS THIRD PARTY

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

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