motor insurance - 2

8/9/2019 MOTOR insurance - 2

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MOTOR INSURANCEMOTOR INSURANCE


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Types of PoliciesTypes of Policies

There are two types of Policies :There are two types of Policies :

(i)(i) Liability Only PolicyLiability Only Policy:: Covers Third PartyCovers Third Party

Liability for bodily injury and/ or death andLiability for bodily injury and/ or death andProperty Damage .Property Damage .

Personal Accident Cover for OwnerPersonal Accident Cover for Owner--Driver isDriver is

also included.also included.

((ii)ii) Package Policy:Package Policy: Covers loss or damageCovers loss or damage

to the vehicle insured in addition toto the vehicle insured in addition to (i)(i)above.above.


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Whatis Covered Undera Motor Policy?


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Own Damage Inclusions

Damage orlossto insured vehiclecausedby:

Fireexplosion, selfignition, orlightning

Burglary, housebreaking ortheft

Riots or Strike Act ofGodperils (events outside human control. I.e., earthquake

,flood, typhoon, hurricane, storm, tempest, cyclone, hailstorm, frost)

In transit (process of delivering a vehicle from one location to another.This cover is applicable within India)

Maliciousact (Intentional damage or destruction of another person orbusinesss property)

Landslide/Rockslide

Terroristactivity


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Electrical & ElectronicFittings:Electrical & ElectronicFittings:

Electrical/Electronicitemsthatareadditionallyfitted(notincludedin themanufacturerssellingprice ofthe vehicle)can beinsuredatan additionalpremium of4% on thevalue ofsuchfittings

Thishasto bespecificallydeclaredbytheinsuredin theproposalform &/orin aletterformingpart oftheproposalform.

AccessoriesAccessories


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CNG/LPG fuel

Any vehicle fitted with an RTA approved

CNG /LPG kit, should to be insured separately

at an additional premium @ 4% on the value

of the kit., and Rs. 60 under liability section.


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CheckyourunderstandingCheckyourunderstanding

What is the amount added to the premium forinbuilt accessories?


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There is no additional premium charged for

inbuiltaccessories. The cost of the accessoriesare taken into account while calculating the

IDV.


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What is the additional amount added to be paid

for Electrical accessories fitted by thecustomer?


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4% of the cost of the accessory


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Mr Rajkumar has installed a gas kit on his own

cost to his Baleno LXI. The cost of the gas kit

is Rs. 18,000/-Calculate the exact premium Rajkumar has to

pay for the gas kit?


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The additional premium payable for the gas kit

is 4% of the value of the kit. i.e. 4% ofRs.18,000/- = Rs. 720/- & Rs. 60 under

liability section.


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Personal Accident Cover

Personal Accident covers the insured in the event ofthe person sustaining bodily injuries resulting solelyand directly from an accident, resulting into death or

disablement.

Personal Accident Owner-Driver Compulsory for Rs.2,00,000/- SI

Passengers Optional up to Rs. 2,00

,000

/- SI perpassenger

TwoWheeler Owner Driver Compulsory for Rs.1,00,000/-


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Scope of CoverScope of Cover -- Compulsory PA for OwnerCompulsory PA for Owner--DriverDriver


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Is PA cover applicable only to the insured or does it

extend to other passengers as well?

The PA cover covers the following :

Personal Accident Cover for Owner Driver which is

compulsory

Personal Accident Cover for occupants

Legal liability to paid driver (As perWorkmens

Compensation Act.) Liability to employees


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Liability

Any loss or damage to third party

Thirdparty

Insurancecoverstheliabilityarising out ofanypermanentinjury/deathto athirdperson causedbytheinsuredcar/two wheeler

Italso coversallth

elegalexpensesincurredfordefendingthethirdpartyclaimaccidentinvolvinghis/her vehicle

Thirdparty Property Damage

Anydamagecausedto theproperty ofathirdperson

byyour vehicledueto an accident

Damageto thirdpartypropertyiscoveredupto an amountofRs. 7. 5 lacsforprivatecarand Rs. 1.0lacfortwowheelers.


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Package Policy

OD + TP Liability + PA

Package Policy is wider in scope and covers

accidental damage to the insured vehicle.

It also covers liability to third parties forbodily injury or death and/or property damage,

injury to the owner, driver and occupants

caused as a result of an accident involving the

insured vehicle.


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Does Motor Insurancecovereverything?


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General Exclusions

Consequential Loss due to accidents (secondarylosses suffered as a consequence of an original loss)

Damage to tyres & tubes without the vehicle beingdamaged

Driver being under the influence of liquor and drugsat the time of accident

Damage to insured's own property

Intentional self injury or attempted suicide Accident occurring outside geographical area of

operation covered by the policy


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ExclusionsExclusions -- ContdContd

Vehicle used otherwise than limitations as to use

Vehicle driven by any one other than a licensed driver

Losses due to ionizing radiation or contamination byradioactivity

Losses caused due to nuclear weapons material

Losses caused due to war and war like situation


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CheckyourunderstandingCheckyourunderstanding

Is an OD claim, caused after consumption ofalcohol, a valid claim ??

motor insurance - 2

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