MOTOR ACCIDENT AND RISK COVERAGE

Author -*S.Baranidharan
Guide -**Dr.C.Madhavaiya
Abstract
Generally, in India we saw number of accident occurring by motor vehicle, day by day its
increasing. This paper is focus on motor accident and risk coverage of the insurance sectors. The
insurance of motor vehicle against damage is not made compulsory, but the insurance of the third
party liability arising out of the use of motor vehicle in public place is made compulsory. No
motor vehicle can play in a public place without such insurance. In motor accident occurs due to
the mistake of driver or uncertainty. Third party liability and Personal accident insurance is fully
based of the motor accident and one more special is hit and run accident. Generally accident is a
chance of occurrences, especially motor accident have a more chance in daily life. The insurance
against motor vehicle for indemnify the loss of the subject matter. Subject to the limit of liability
as laid down in the schedule hereto, the company will indemnify the insured in the event of
accident caused by or arising out of the use of the motor vehicle against all sum including
claimant’s cost and expenses which the insured legally liable to pay in respect of death of or
bodily injury to any person so far as it is necessary to meet the requirements of the motor act.
Damage to property other than property belonging to the insured or held in trust or in the custody
or control of insured up to the specified limit in the schedule. Personal accident cover owner-
driver.
Risk covers of motor insurance is based on the motor vehicle, risk analysis is determine
on the age of vehicle and on the basis of cubic centimeters (c.c) as well as depreciation of the
vehicle. In hit and run accident, risk is death or injury of any person a fix sum assured is provide
through “solatium fund”. Personal accident is differ is fully based on the risk, if death, injury like
loss of limbs, eyes, permanent total or partial or temporary disablement, in this based amount of
compensation made. Third party liability is taker of the insurance company (insurer) it is a
separate part of motor insurance.

* Author name **guide name

Student of MBA II sem Lecturer
School of Management School of Management
Department of Management Department of Insurance Management
Pondicherry university Pondicherry university
Karaikal campus Karaikal campus
baranii89@gmail.com