Group Member

Ali Naqvi Hina Razzaq Arslan Nawaz Jawaria Abrar Aqsa Muzaffar Qaiser Ayub

Motor Insurance & Property Insurance Contracts
Adamjee Insurance Company Ltd

Parts of Contract
1 Declarations




Insuring agreement






Miscellaneous provisions

Parts of Contracts
• Declarations - identifies who is an insured, the insured's address, the insuring company, what risks or property are covered, the policy limits (amount of insurance), any applicable deductibles, the policy period and premium amount. • Definitions - define important terms used in the policy language. • Insuring agreement - describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured. It summarizes the major promises of the insurance company, as well as stating what is covered.

Parts of Contracts
• Exclusions - take coverage away from the Insuring Agreement by describing perils, hazards or losses arising from specific causes which are not covered by the policy. • Conditions - provisions, rules of conduct, duties and obligations required for coverage. If policy conditions are not met, the insurer can deny the claim. • Miscellaneous Provisions – cancelation, subrogation clause and their requirement

Motor Insurance Contract

Adamjee Insurance Company Ltd

What is Motor Insurance?
Motor Insurance ensures that the owner of vehicle is protected from financial losses, caused by damage or theft to the vehicle and third party liability.

Decelerations In Contract
Information about insurer, insured and insured car specifications. Like

• Car manufactured company • Model no • Engine no • Chassis no • CC no • Body type • Color of car

• • • •

Period of insurance Insured Insurer Insurer and insured address • Geographical area • Premium amount

Insuring agreement Coverage Adamjee comprehensive motor insurance policy gives you the maximum coverage. The major scope of the cover includes:
• Loss or Damage Due To (Section 1) • Third Party Liability (Section 2) • Medical expenses (Section 3)

Loss or Damage Due To: • • • • • • • • • Accidental means Fire external explosion, Self – ignition Lightning, Flood, Hail, Wind, Tornado Convulsion of nature Theft & Burglary house breaking Malicious Act Whilst in transit (Road & Rail) Riots & Strikes Terrorism (Optional)

Third Party Liability & Medical Expenses

Third Party Liability
• Property Damage • Bodily Injury or death of any person (Section 95 of motor vehicles act 1939) • Cost and expense written consent • Indemnification to authorized driver • Not indemnified to non owner or non hire purchaser of motor car

Medical expenses
In case of violent accident external and visible mean company will pay medical expenses which is not exceeded by 350Rs.

• • • • • • Losses incurred outside geographical area of Pakistan Consequential loss depreciation wear and tear Driven by unauthorized driver Mechanical or electrical breakdown failures or breakage Damage to Tyres and Battery unless the Motor Any loss or liability arising out by
– Radiations or radio activity from nuclear – Nuclear waste – Nuclear weapons

Special loss Company is not liable to loss or damage of • Television • Radio • Tape recorder • Record changer • A.C

• Notice of loss, assistance and information should provided to company in case of loss. • Company entitled for claim settlement. • Company can replace, repair or pay cash to damage of car or its parts. • Reasonable steps should be safeguard against loss. • Company can cancel policy after 7 days notice in case non payment of premium. • Difference of claim settlement should be on court of attributor.

Depreciation clause

Event of claim following rate of depreciation will be applied
Time Period
Latest modal but not older than 6 months Older than 6 months but no exceeded 12 months Older than 12 months but no exceeded 24 months Older than 24 months but no exceeded 36 months Older than 36 months but no exceeded 48 months Older than 48 months but no exceeded 60 months Older than 60 months

5% 10% 20% 30% 40% 50% 60%

Schedule of Loading

1 claim in precceding year of insurance

2 claim in precceding year of insurance

3 claim in precceding year of insurance 40% B.P

10% B.P

20% B.P

30% B.P

4 claim in precceding year of insurance

No claim bonus

Period of insurance
No claim made or pending during preceding of insurance No claim made or pending during preceding 2 consecutive year of insurance 5% 10%

Comprehensive Third party 10% 15%

No claim made or pending during preceding 3 consecutive year of insurance
No claim made or pending during preceding 4 consecutive year of insurance No claim made or pending during preceding 5 consecutive year of insurance

20% 25%

25% 33.33%

Property Insurance Contract

Adamjee Insurance Company Ltd

What Property insurance is?
Insurance policy provides compensation to the insured person or firm in the event of damage to the property insured (i.e. buildings, stock, machinery and other contents) caused by fire, lightning.

Property Insurance


Decelerations In Contract
Information about insurer, insured and insured machines specifications. Like

• Machine manufactured company • Model no • Engine no • Capacity

• • • •

Period of insurance insurer name Insured name Insurer and insured address • Geographical area

Insuring agreement
The insurance policy broadly covers losses due to: • Physical loss or damage due to defect in casting and material. • Faulty design • Faults at workshop Or in erection. • Bad workmanship • Lack of skills • Carelessness • Shortage of water in boilers. • Physical explosion • Tearing apart on account of centrifugal force • Strom • Short circuits

• Atmospheric Disturbance (Like Earthquake, Fire, Lightning and Flood) • Chemical Explosion • Theft / Burglary • Loss due to which supplier/contractor responsible by law for damages. • Loss of or damage of exchangeable tools (Wires, ropes etc) • Riot and Strike • Gross negligence • Losses arising out of War and War like situations • Nuclear reaction, radiations or radioactive etc.

• Observance and fulfillment o for this policy truth statement and answers in questionnaire and proposal made by insured and condition precedent must be mention • Schedule shall be deemed to in corporated and part of policy used in contract including the schedule specific meaning can bi attached in any part of policy • Insured shall at his own expense take all reason able proportion or reasonable recommendation .insurer prevent losses or damage as per requirement and manufacturer s recommendation

Provisions • Memo 1 Sum Insured Policy that sum insured is equal to the cost of replacement of insured machinery by new machinery of the same kind and capacity init cost of replacement including

Provisions Memo 2 Basic of indemnity (A) • In case of damage insured item can be repaired insurers shall pay expenses necessarily restore to damaged machine state of serviceability , cost of dismantling and effecting the repairs , fright from repair shop ,custom duties . • if repair made by insured at workshop , the insurers pay the cost of material ,wages and reasonable % to cover overhead charges

Provisions No deduction shall be made for deprecation or part replaced ,value of salvage shall bi taken to the account . Memo 2 (B) Insured item is destroyed insurers shall pay the actual value of item before the loss occurs, Charges for ordinary fright and custom duties.

Miscellaneous Provisions
• • • • Right to inspect and examine the risk Provide information and details risk Precautions should be taken by insured at it’s own expense If notice of loss is not given to insurer till 14 days then loss should not be indemnified Attributor clause Umpire clause Policy can be terminated by the request of insured at any time Insures shall not be liable to pay any interest other than interest for default

• • • •

Premium Payment Method
Premium payment can be made through cash, cheque, pay order, demand draft, telex transfer to the concerned Adamjee Insurance branch.

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