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MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO.

INTRODUCTION TO INSURANCE SECTOR
Future is always uncertain and full of risk. It is not certain that what is going
to happen tomorrow. Therefore a man is always worried about security of
property and life. Insurance is a means of meeting out loss caused by future
risks and uncertainties.
Insurance is a contract between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party
called insured a fixed amount of money on the happening of a certain event."
According to Patterson, Insurance is an agreement between two parties under
which one party undertakes specified future risk of another party and
compensates the loss from that risk on payment of some consideration known as
premium payable by the later.
Insurance may be described as a social device to reduce or eliminate risk of
life and property. Under the plan of insurance, a large number of people
associate themselves by sharing risk, attached to individual.
With the help of Insurance, large number of people exposed to a similar
risk makes contributions to a common fund out of which the losses suffered by
the unfortunate few, due to accidental events, are made good.
Insurance is a tool by which losses of a small number are compensated out of
funds collected from plenteous. Gradually as competition increased benefits
given by industry to its customers increased by leaps and bounds. Insurance is a
basic form of risk management which provides protection against possible loss
to life or physical assets. Person who seeks protection against such loss is
termed as insured, and company that promises to honor claim, incase such loss
is actually incurred by insured, is termed as Insurer. In order to get insurance,
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MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO.

insured is required to pay to insurance company a certain amount called
premium. Premium is collected by insurance companies which acts as trustee to
pool created through contributions made by persons seeking to protect
themselves from common risk. Any loss to the insured incase of happening of
an uncertain event is paid out of this pool.
Insurance provides:
 Protection to investors.
 Accumulation of savings.
 Channeling these savings into sectors needing huge long term investment.

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MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO.

INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY
In 1999, the Insurance Regulatory and Development Authority (IRDA) were
constituted as an autonomous body to regulate and develop the insurance
industry. The IRDA was incorporated as a statutory body in April, 2000. The
key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums,
while ensuring the financial security of the insurance market. The IRDA opened
up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The
Authority has the power to frame regulations under Section 114A of the
Insurance Act, 1938 and has from 2000 onwards framed various regulations
ranging from registration of companies for carrying on insurance business to
protection of policyholders’ interests. IRDA is regulated or controlled under the
chairmanship of Shri. J.Hari Narayan.
Role of IRDA:
 Protecting the interests of policyholders.
 Establishing guidelines for the operations of insurers, and brokers.
 Specifying the code of conduct, qualifications, and training for insurance
intermediaries and agents.
 Promoting efficiency in the conduct of insurance business.
 Regulating the investment of funds by insurance companies.

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ISNURANCE CO.  Specifying the percentage of business to be written by insurers in rural sectors  Handling disputes between insurers and insurance intermediaries.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. 4 .

servicing of policy post sale and settlement of claims. The distributors have to become trusted financial advisors for the clients and trusted business associates for the insurance Companies. In today's scenario. Each of the markets requires a different approach. exhibiting different traits and needs. The public and private sector insurance companies have their branches in almost all parts of the country and have attracted local people to become 5 . Different multi-distribution channels in India are as follows:  Agents: Agents are the primary channel for distribution of insurance. Apart from geographical spread the sociocultural and economic segmentation of the market is very wide. It is the distributor who makes the difference in terms of the quality of advice for choice of product. these conditions will play a major role in shaping the distribution channels and their effectiveness.  Building personal credibility with the clients. The Touch point with the ultimate customer is the distributor or the producer and the role played by them in insurance markets is critical. Challenges for insurance companies and intermediaries in India Building faith about company in the mind of clients. ISNURANCE CO. insurance companies must move from selling insurance to marketing an essential financial product. with their distinct cultural and social ethics. In the Indian market. Indian insurance market is a combination of multiple markets. Different distribution channels in India:A multi-channel strategy is better suited for the Indian market.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. DISTRIBUTION OF INSURANCE PRODUCTS Insurance has to be sold the world over.

 Corporate agents: Corporate agency is a cross selling type of channel. ISNURANCE CO. Insurance companies’ tie-up with business houses in other industries to sell insurance either to their employees or their customers. and himself to the customer. These financial institutions are known as brokers. and also know his competitor's products to be an effective salesman who can sell his company. with their vast branch networks. Many insurance companies are selling their products through banks. especially the public sector banks. Insurance industry. They are taking some underwriting charges from the insurance companies to sell their insurance products. Today's insurance agent has to know which product will appeal to the customer. their agents. Perceptions about the public sector companies are also cemented in his mind. every new company is the same. To the average customer. they are selling their products through their parent bank. are helpful to insurance companies. the product.  Banks: Banks in India are all pervasive. This channel of selling insurance is known as Banc assurance. So an insurance agent can play an important role to create a good image of company. The public sector banks. during the past 2 years has witnessed a number of such strategic 6 . Companies which are bank owned.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. Brokers:  Now a day’s different financial institution are selling insurance.

 Internet: In this technological world internet is also a channel of selling insurance. Such as. This can be as direct marketing. 7 . Corporate agents have become a major force to reckon with in distributing insurance products. khaitan’s Williamson major and bridge foundation for selling rural policies. ISNURANCE CO.Bajaj Allianz tied up with Maruti Udyog and Ford for auto insurance and Tata AIG life has tied up with Tata tea.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. tie-ups and alliances.

There is a danger at every corner when it comes to Indian roads. burglary. explosion. riot. Motor insurance policies cover any loss or damage caused to the vehicle or its accessories due to the natural and man made calamities like fire. Much of these are attributable to a sudden spurt in the number of vehicles. The basic premise is that motor vehicles could either cause injury or be a subject of damage and injury and thus require insurance. ISNURANCE CO. no motor vehicle is allowed to be driven on the road without valid insurance. INTRODUCTION TO MOTOR INSURANCE Motor Insurance is one of the largest non-life insurance businesses in the world. Hence. Legally.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. Therefore. earthquake. Motor insurance provides compulsory personal accident for individual owners of the vehicle 8 . malicious act etc. All motor vehicles are required to be registered with the road transport authorities and insured for third party liability. theft. strike. flood. The Motor Vehicle Act of 1939 introduced compulsory -9 to take care of those who may get injured in an accident. every vehicle being driven on roads has to be compulsorily insured. There has been a phenomenal rise in the motor accidents in the last 4-5 years. it is obligatory to get the vehicle insured.

You step out of your house and at every moment encounter number of risks that one cannot imagine. There is hardly any industry i. 30 out of 100 vehicles meet with accidents on the road. We read every day in the newspapers about accidents. 9 . It includes any permanent injury or death of a person and damage caused to the property. One can also opt for a personal accident cover for passengers and third party legal liability.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. manufacturing activity or service organization that does not come within the scope of General Insurance.e. It represents a combined coverage of the vehicles including loss or damage to his property or life and the third party coverage. while driving. What is worrying for all of us is not the operation of those risks but the operations that are accidental. Occurrence of uncertainty cannot be predicted. Without risks there cannot be progress. Insurance is one certain way of dealing with uncertainties because risk arises out of uncertainty and is a pervasive force in the world. Risk is inherent aspect of human life whether individual or organization. ISNURANCE CO. unforeseen and external. The third party legal liability protects against legal liability arising due to accidental damages. bomb explosions taking place.

1930 and 1934. This led to the introduction of compulsory third party insurance through the passing of the Road Traffic Acts. accidental damage to the car was added to the policy. 10 . 1989. By 1899. ISNURANCE CO.K. the tariffs have been withdrawn. After World War 1. The first motor car was introduced into England in 1894. The compulsory insurance provisions of these acts have been consolidated by the Road Traffic Acts. there was a considerable increase in the number of vehicles on the road as also in the number of road accidents.K. and it became effective from 1 st July.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. the Motor Vehicles Act was passed in 1939 introducing the law relating to compulsory third party insurance. The practice of motor insurance in India generally follows that of the U. followed by other companies. the comprehensive policy along the lines of the policy today. Many injured persons in road accidents were unable to recover damages because not all motorists were insured. The business is governed by a tariff. In 1903. market. The first motor policy was introduced in 1895 to cover third party liabilities. The Motor Vehicles Act 1988 has replaced the earlier 1939 Act. HISTORY OF MOTOR INSURANCE Motor Insurance had its beginnings in the United Kingdom in the early part of this century. whereas in U. the Car and General Insurance Corporation LTD was established mainly to transact motor insurance. In India. thus introducing. 1960.

be it a car.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO. pedestrians have a tough time dodging between vehicles to reach the other end of the road. jaywalkers.  Fire: There is also a danger of fire or theft of vehicle.  Reckless Driving: Majority of the youngsters drive recklessly caring little for the law. Large potholes during monsoons can worsen the situation causing damage to the vehicle. 11 . increasing number of accidents etc. two-wheeler or even a truck. which accentuate the need for automobile insurance. traffic management system. puddles. NEED FOR MOTOR INSURANCE In Indian conditions the vehicles are subject to many hazards like potholes. Therefore. causing serious accidents resulting in loss of life or limb.  Drunken Driving: It is another major reason for increase in accidents. motor insurance under such unsafe conditions is a must not only to cover risks towards the owner and the vehicle but also to cover the financial liability that may arise from an accident in which the other party is injured or the cost of repairs that you may have to pay to other party in case of an accident. Some of these hazards are discussed below: Footpaths: As footpaths are occupied by hawkers.

12 .  Theft: Cases of stolen cars on the rise.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. of vehicles in order that they are not traced. Experts in stealing cars are well aware of the loopholes that can be exploited and accordingly have been successful in manipulating with the chases no. ISNURANCE CO.

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. 2. the geographical area of use. the vehicle is the property which is exposed to loss or damage. It is the name of a legal doctrine which governs insurance contracts. a breach of a warranty. he may suffer financial loss if he incurs that liability caused by negligent use of the vehicle. the insured has insurable interest which entitles him to insure the vehicle against damage and liability risk. Some examples of material facts in motor insurance are the type of vehicle. insurers pay the market value of the vehicle at the time of loss or the sum insured whichever is less. Principle of Contract of Indemnity: The principle of indemnification is that the insured should not profit from the policy. the driving history of the driver etc. This does not preclude that the insured will suffer some loss. ISNURANCE CO. many policies include a deductible which guarantees that the insured will pay part of each loss himself. or concealment. In fact. PRINCIPLES OF MOTOR INSURANCE 1. a suitable depreciation is charged on the cost of new parts. 3. In the event of total loss of the vehicle. Therefore. Under utmost good faith contracts if there is a violation it is categorized as a material misrepresentation. the physical condition of the driver. Motor policies are extended to indemnify persons other than the insured in respect of 13 . Principle of Insurable Interest: Insurable Interest is one wherein loss would be suffered from an adverse occurrence to the person insured. but if old parts are replaced by new. the cost of repairs is paid. In motor insurance. Principle of Utmost good faith: Contracts of motor insurance are governed by the doctrine of “utmost good faith”. The insured also has a legal liability towards third parties. If vehicle is damaged.

Proximate Cause: In this. Principle of contribution: It arises when there is double insurance. Otherwise. when the same vehicle is insured under two policies. ISNURANCE CO. Although owner insured has. no insurable interest in any such liability.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. The third party injury or property damage must be proximately caused by the negligence of the insured for which he is held legally liable to pay damages. the injured third parties will have no recourse to recover damages. The doctrine also applies to third party claims. third party liability. that is. Insurers exercise the right to cover the loss from the person responsible. Subrogation operates only after the claim is paid. 5. he is deemed as having acted as an agent in arranging the indemnity on behalf of other persons who may drive the vehicle and incur liability. 4. Principle of subrogation: Subrogation is the transfer of the rights from the insured to the insurer when the loss or damage to the vehicle is caused by the negligence of another person. The contribution condition is specially worded in private car policies because the owner is also covered for the third party liability while driving cars not belonging to him. 14 . the loss or damage to the vehicle is indemnified only if it is proximately caused by one of the insured perils. 6.

with at least Liability only policy.  Maintenance of state registers for driving licenses and vehicle registration and constitution of Road Safety Councils.  Stricter procedures for grant of driving licences and period of their validity. 1989. Some of the provisions of the Act provide the following matters:  Rationalisation of certain definitions with addition of certain new definitions of new types of vehicles. while other covers insurers all liability and damage caused to one’s vehicle. one should have a portfolio of policies covering all the needs.  Lying down of standards for the components and parts of motor vehicles.  Provisions for issuing fitness certificates of vehicles also by the authorized testing stations. MOTOR VEHICLE ACT In India the Motor Vehicles Act was first introduced in 1939 and later it became effective from 1st July.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. 15 . Since a single policy cannot meet all the insurance objectives.  Enabling provision for updating the system of registration marks. It introduced the law relating to compulsory insurance of any motor vehicle that plies in public places. ISNURANCE CO. There are two types of policy one covering the act of liability. Motor Vehicles Act states that every motor vehicle plying on the road has to be insured.

The liabilities that require to be covered under this Act are:  Any liability arising in respect of death or bodily injury to any person including the owner of the vehicle or his authorized person in the carriage.  Seeking to provide for more deterrent punishment in cases of certain offences.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO.  Any liability arising under Workmen’s Compensation Act.  Standards for anti-pollution control devices. in respect of injury or death of:  A paid driver of the vehicle  Conductor or ticket examiner  Worker’s carries in a goods vehicle. 16 .  Any liability incurred in respect of the death or bodily injury of any passenger of a public service vehicle.  Liberalized schemes for grant of All-India Tourist permits as also national permits for goods carriages.  Any liability for bodily injury or death of passengers who are carried for reward or hire by reason of a contract of employment.  Any liability incurred in respect of damage to any property of a third party.

17 .MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.  The policy should carry a ‘no fault’ liability limited to a sum of Rs 50.000 in case of death.000 in case of permanent disability and Rs 6.000 in case of damage to property. Rs 25. ISNURANCE CO.

better knowledge of rules and regulations could help everyone on the roads.Rules framed by various state governments in accordance with the MVA and CMVR to suit local conditions of the State.  The Central Motor Vehicles Rules (CMVR) 1994.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. cars. With their hands on the steering wheel. The Indian roads see more than 3lakhs road accidents that kill more than 65.The law for operation for all Motor Vehicles in India. ISNURANCE CO. try to race ahead. most accidents happen due to sheer ignorance amongst drivers and vehicle owners of basic rules for Indian roads. The most appalling fact is that.000 people and injure another 3lakhs. most drivers feel they own the roads. 18 .  The State Motor Vehicles Rules. More than 35 million registered vehicles traffic a network of around 3 million kms of roads in India. The RTO office enforces the law on Indian roads. Trucks. LAWS AND REGULATIONS The classical scene on Indian roads is that of arrogant drivers bullying over safe drivers. buses. two wheelers and three wheelers all wedging in between other vehicles. Therefore. and the law that governs the Indian roads are the following:  The Motor Vehicles Act (MVA) 1914/ 1939 AND 1988. For these drivers traffic rules are silly and kill the joy of driving a vehicle.Rules that stipulate various procedures with reference to the MVA 1988. at traffic signals and in between signals.

authorised by the Government.  Registration. 19 . A driver’s licence issued by the competent authority of any state/union territory is valid throughout the Indian Union. particulars and information and shall be made within such period as may be prescribed by the Central Government. like The Western India Automobile Association.  The registering authority shall issue to the owner of a motor vehicle registered by it.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. a certificate of registration in such form and containing such particulars and information in such manner as may be prescribed by the Central Government. Rules and Regulations in relation to Motor Insurance:  Driving Licence (Section 14 Motor Vehicles Act): An appropriate driving licence is required if you want to drive a motor vehicle anywhere in India. how to be made (Section 41 of Motor Vehicles Act):  An application by or on behalf of the owner of a motor vehicle for registration shall be in such form and shall be accompanied by such documents. ISNURANCE CO. International Driving Permit (IDP) can be issued by any RTO or motoring associations. The period of validity is one year. section 43 and section 60. a photocopy of the driving licence is not acceptable.  Registration. You must carry your driving licence on your person at all times. where to be made (Section 40 of Motor Vehicles Act): Subject to the provisions of section 42. every owner of a motor vehicle shall cause the vehicle to be registered by a registering authority in whose jurisdiction he has the residence or place of business where the vehicle is normally kept.

 Cancellation of registration (Section 55 of Motor Vehicles Act): 20 . a distinguishing mark referred to as the registration mark followed by such letters and figures as allotted to the state and displayed and shown on the motor vehicle in such form as may be prescribed by the Central Government.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. other than a transport vehicle shall subject to the provisions contained in this Act.  The registering authority shall enter the particulars of the certificate in a register to be maintained in such form as may be prescribed by the Central Government. it is necessary to have permission of the concerned RTO. for making necessary corrections. the owner must forward the registration certificate to the RTO within 14 days.  Alteration in Motor Vehicle (Section 52 Motor Vehicles Act): No vehicle can be altered to an extent that the particulars containing in the registration certificate are no longer accurate. Before doing any alterations. by notification in the Official Gazette. be valid only for a period of fifteen years from the date of issue of such certificate and shall be renewable. After carrying out the alteration. it shall also specify the type of the motor vehicle. having regard to the design construction and use of it.  In addition to the other particulars required to be included in the certificate of registration. ISNURANCE CO. for display thereon.  The registering authority shall assign to the vehicle.  A certificate of registration in respect of a motor vehicle.

The plate should not have any line. raised or shining metal numbers are not permitted.  The colour scheme for Non –Transport vehicles (Section 118 Motor Vehicles Act):  Permanent Registration. cancel the registration and the certificate of registration.  A registering authority cancelling the registration of a motor vehicle under section 54 or under this section shall communicate such fact in writing to the owner of the vehicle. the owner shall.  If a motor vehicle has been destroyed or has been rendered permanently incapable of use.  Car Registration Mark (Rules 50.5 cm high/1 cm thick. ISNURANCE CO.  The registering authority shall.Red on Yellow Plate. within fourteen days or as soon as may be. 21 .  Temporary Number.  Fancy lettering. or.  Numerals: 6 cm/ 1 cm thick. or colour. and the owner of the vehicle shall forthwith surrender to that authority the certificate of registration of the vehicle. report the fact to the registering authority within those jurisdiction he has the residence or place of business where the vehicle.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.White on Black plate. shall forward the report and the certificate of registration to the original registering authority and that authority shall cancel the registration. 51 Central Motor Vehicles): The registration number displayed must confirm to following specifications:  Letters: 4. if it is not. or any other kind of marking on it.

 A reversing white light is permitted provided the light is diffused and not too bright. search lights.  Dome lights are not permitted unless specially authorised. The music played in the vehicle must be kept at low levels of sound so as not to distract other drivers on the road. ISNURANCE CO. mercury lamps are expressly forbidden.  Rear View Mirror (Rule 125 Central Motor Vehicles Rules): Every motor vehicle. Horns producing musical notes. loud. unduly harsh. Use of curtains that obscure clear vision is prohibited.  TV/Video/Music (Rule 162 Central Motor Vehicles Rules): No TV/Video display should be placed in a vehicle in a manner that it may distract the driver.  Space between letters/ numerals should not be less than 1 cm. fancy lights.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. must be fitted with a rear view mirror in such a way that the driver has a clear vision of the traffic behind.111 Central Motor Vehicles Rules):  Spotlights.  Any material that reflects light is also not permitted.  Lamps and additional lights (Rules 105-108. except motor cycles. shrill or alarming noises fall in this category.  Horns (Rule 119 Central Motor Vehicles Rules): No vehicle is allowed to be fitted with any multitone horn. 22 .  Tinted glasses (Rule 100 Central Motor Vehicles Rules):  Tinted glasses or sun control films should not be so dark as to obscure clear vision.

in case he is a minor.  Duty of driver in case of accident and injury to a person (Section 134 Motor Vehicles Act):  When any person is injured or any property of a third party is damaged as a result of an accident in which a motor vehicle is involved.  Give on demand by a police officer any information required by him. desires otherwise.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. Time and Place of accident. take all reasonable steps to secure medical attention for the injured person.  Necessity for insurance against third party risks: (Section 146 Motor Vehicles Act): 23 .  Date. if any. for not taking reasonable steps to secure medical attention as required. report the circumstances of the occurrence.  Give the following information in writing to the insurer who has issued the certificate of insurance. about the occurrence of the incident namely:  Insurance Policy number and its period of validity.  Name of the driver and particulars of his driving license. ISNURANCE CO. and in any case within twenty four hours of the occurrence. if no police is present.  Particulars of the persons injured or killed in the accident. at the nearest police station as soon as possible. by conveying him to the nearest medical practitioner or hospital immediately unless the injured person or his guardian. the driver of the vehicle or other person in charge of the vehicle shall Unless it is not practicable to do so on account of mob fury or any other reason beyond his control. or.

transfers to another person the ownership of the motor vehicle. or with fine which may extend to Rs 1000 or both.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. earthquake. in the case of a motor vehicle carrying or meant to carry dangerous or hazardous goods there shall be policy of insurance under the Public Liability Act. a motor vehicle in a public place unless there is in force a policy of insurance complying with the requirements of the provisions of the Act.  Transfer of certificate of insurance (Section 157 of Motor Vehicles Act 1988): Where a person in whose favour the certificate of insurance has been issued. 24 .  Section 196: Driving under vehicle: Whoever drives a motor vehicle or causes or allows a motor vehicle to be driven in contravention of the provisions of Section 146 shall be punishable with imprisonment which may extend to three months. damage/loss due to accident. The legal requirement is of ‘third party’ insurance only. in respect of which such insurance was taken together with the policy of insurance relating thereto. the certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer. ISNURANCE CO. 1991. No person shall use. riots and strikes. The transferee shall apply within fourteen days from the date of transfer in the prescribed form to the insurer for making necessary changes in the certificate and the policy of insurance in regard to the transfer of insurance.third party risk. It is sensible to have a comprehensive policy that covers. fire or theft and also covers risks against floods. Also. except as a passenger or cause or allow any other person to use.

A claims tribunal shall consist of such number of members as the state government may think fit to appoint and where it consists of two or more members. 1988 describes the procedure of the insurance payments in the case of Hit and Run Motor Accidents. or  Is.  Hit and Run Motor Accidents: Section 161 to 163 Motor Vehicles Act. or has been.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. persons arising out of the use of motor vehicles or damages to any property of a third party so arising or both. ISNURANCE CO. or  Is qualified for appointment as a High Court Judge  Application for compensation (Section 166 of Motor Vehicles Act): An application for compensation arising out of an accident of the nature specified in sub-section (1) of section 165 may be made By the person who has sustained the injury  By the owner of the property 25 .  Claims Tribunals (Section 165 of Motor Vehicles Act 1988): A state Government may. death by hit and run motor accident. or bodily injury to. one of them shall be appointed as the chairman thereof. It defines the terms such as grievously hurt. They are those accidents in which a member of the public is hit by a motor vehicle not identifiable or traceable by reasonable efforts of the claimants or the insurers. constitute one or more Motor Accidents claims Tribunals for such area as may be specified in the notification for the purpose of adjudicating upon claims for compensation in respect of accidents involving the death of. or has been a District Judge. by notification in the official Gazette. A person shall not be qualified for appointment as a member of a Claims Tribunal unless he Is. a Judge of a High Court.

the person who is required to pay any amount in terms of such award shall. the Claims Tribunal shall arrange to deliver copies of the award to the parties concerned expeditiously and in any case within a period of fifteen days from the date of the award. Subject to any rules that may be made in this behalf. at the option of the claimant. the Claims Tribunal may for the purpose of adjudicating 26 .MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. within thirty days of the date of announcing the award by the Claims Tribunal. either to the Claims Tribunal having jurisdiction over the area in which the accident occurred.  Award of the Claims Tribunal (Section 168 of Motor Vehicles Act): On receipt of an application for compensation made under section 166. ISNURANCE CO. or to the Claims Tribunal within the local limits of whose jurisdiction the claimant resides or carries on business or within the local limits of whose jurisdiction the defendant resides. When an award is made under this section.  Procedure and powers of Claims Tribunals (Section 169 of Motor Vehicles Act): The Claims tribunal shall have all the powers of a Civil Court for the purpose of taking evidence on oath and of enforcing the attendance of witnesses and of compelling the discovery and production of documents and material objects and for such other purposes as may be prescribed. deposit the entire amount awarded in such manner as the Claims Tribunal may direct. Every application under sub-section (1) shall be made. the application shall contain a separate statement to that effect immediately before the signature of the applicant. by all or any of the legal representatives of the deceased.  Where death has resulted from the accident. and shall be in such form and contain such particulars as may be prescribed: Provided that where no claim for compensation under section 140 is made in such application.

upon any claim for compensation. in the manner directed by the High Court: Provided further that the High Court may entertain the appeal after the expiry of the said period of ninety days. No appeal shall lie against any award of a Claims Tribunal if the amount in dispute in the appeal is less than ten thousand rupees. Nothing in this section shall apply to the use of a motor vehicle in an emergency for the conveyance o persons suffering from sickness or injuries. if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. choose one or more persons possessing special knowledge of any matter relevant to the inquiry to assist it in holding the inquiry.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO.  Using vehicle without registration (Section 192 Motor Vehicles Act): Whoever drives a motor vehicle or causes or allows a motor vehicle to be used in contravention of the provisions of section 39 shall be punishable for the first offence with a fine which may extend to five thousand rupees but shall not be less than two thousand rupees for a second or subsequent offence with imprisonment which may extend to one year or with fine which may extend to ten thousand rupees but shall not be less than five thousand rupees or with both.  Using vehicle without permit (Section 192A of Motor Vehicles Act): 27 .  Appeals (Section 173 of Motor Vehicles Act): Subject to the provisions of sub-section (2) any person aggrieved by an award of a Claims Tribunal may. within ninety days from the date of the award prefer an appeal to the High Court: Provided that no appeal by the person who is required to pay any amount in terms of such award shall be entertained by the High Court unless he has deposited with it twenty five thousand rupees or fifty percent. of the amount so awarded. whichever is less.

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. shall be punishable for the first offence with a fine which may extend to five thousand rupees but shall not be less than two thousand rupees and for any subsequent offence with imprisonment which may extend to one year but shall not be less than three months or with fine which may extend to ten thousand rupees but shall not be less than five thousand rupees or with both. Whoever drives a motor vehicle or causes or allows a motor vehicle to be used in contravention of the provisions of sub-section (1) of section 66 or in contravention of any condition of a permit relating to the route on which the vehicle may be used. 28 . ISNURANCE CO.

Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz. stability and strength. ISNURANCE CO.100crore mark in profit before tax in the last two years.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.421Crores and has become the only private insurer to cross the Rs.295Crores. COMPANY PROFILE BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. As on 31st March. The profit after tax was Rs. Bajaj Allianz has made a profit before tax of Rs.5% higher than the previous year. Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. all the offices are interconnected with the Head Office 29 . Both enjoy a reputation of expertise. 138. SE. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May. The Company has an authorized and paid up capital of Rs 110crores. From Surat to Siliguri and Jammu to Thiruvananthapuram. 2001 to conduct General Insurance business (including Health Insurance business) in India. 2013 Bajaj Allianz General Insurance maintained its premier position in the industry by achieving growth as well as profitability.

at Pune.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. 30 . ISNURANCE CO.

In addition.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.e. under Bajaj Allianz General Insurance Company Ltd. approved by the Hon. under Bajaj Allianz Life Insurance Company Ltd. Bajaj Financial Solutions Ltd. the Company has wind-farm assets consisting of over 140windmills in Maharashtra with an installed capacity of 65. 2007. Bajaj FinServ will strive to be one of the top financial services businesses in India focused on delivering superior customer experience through competitive products and class leading services while providing consistent and superior returns to our shareholders and maintaining the high levels of integrity of Bajaj. The financial services and wind energy businesses were transferred to Bajaj FinServ Limited (BFS) as part of the recently concluded demerger of Bajaj Auto Limited. The demerger is effective from the Appointed Date i. and general insurance. offers financial products and advises clients on financial and wealth management. The Company operates in four segments: Insurance. closing hours of business on March 31. its wholly owned subsidiary. Bajaj Finserv Limited Bajaj Finserv Limited is a holding company with business interest spread across the financial services sector. In addition.2megawatt. Windmill.. Retail Financing and Investments and others. The Company’s three key businesses include lending through Bajaj Finance Ltd. The Company is financial services company. High Court of Judicature at Bombay by its order dated December 18. life insurance. 31 . ISNURANCE CO. 2007..

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. BFS is engaged in life and general insurance businesses through its joint ventures with Allianz SE namely Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Limited. is currently engaged in the business of distribution of financial products. BFS is also active in wind-energy generation. 32 .2 MW. Both these companies have established themselves as industry leaders by being number two among the private players in their respective businesses. The wind-energy project of BFSL operates 138 windmills in Maharashtra with an installed capacity of 65. general insurance and consumer finance businesses and has plans to expand its business by offering a wide array of financial products and services in India. Bajaj Allianz Financial Distributors Limited. ISNURANCE CO. The company is currently engaged in life insurance. Apart from financial services. a 50:50 JV between BFSL and Allianz SE.

with specialized asset managers including PIMCO (bonds). Allianz has operations in over 70 countries and has around 1. Allianz SE. Its core business and focus is insurance. RCM (equities) and Degi (real estate). Germany.000 employees. as well as the largest financial services company when measured by 2012 revenue. As of 2010. The parent company. the 12th-largest financial services group and 23rd-largest company according to a composite measure by Forbes magazine. having €1.131 billion are third-party assets (as of 2010-09-30).As a result of this merger.443 billion of assets under management (AuM). Allianz SE Allianz SE is a German multinational financial services company headquartered in Munich. Its Allianz Global Investors division ranks as a top-five global active investment manager. Allianz has more than 76 million customers worldwide and its 33 . of which €1. it was the world's largest insurance company. ISNURANCE CO. is headquartered in Munich.80.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. Allianz sold Dresdner Bank to Commerzbank in November 2008. Allianz gained a 14% controlling stake in the new Commerzbank.

34 . services include property and casualty insurance.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. In 2013 it was number 25 on the global Forbes 2000 list. ISNURANCE CO. life and health insurance and asset management.

If one pays the premium through Citibank credit card they are provided with a 0% EMI option for their convenience. 35 . This policy bears the expenses of any damage that may have been caused to the vehicle in case of an accident and even provides aid in case the car stops working or breaks down. The Motor Insurance policy can be purchased online and can be renewed in the same way. ISNURANCE CO. Claims can be registered at any time of the day or night and they will be settled instantly in an efficient and just manner. They also keep in touch with their clients and keep them updated on the new policies or the progress with their agreement via sms.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. It pays for the replacement of parts. The Motor Insurance policy offered by Bajaj Allianz General Insurance is a comprehensive and beneficial one as it provides the client with a security that is essential while driving on the busy streets. Bajaj Allianz General Insurance offers a Motor Insurance policy which gives the client the security he needs and at an affordable price. MOTOR INSURANCE FROM BAJAJ ALLIANZ When a person buys a car it is very important to get it insured especially in a country like India where road accidents are an everyday affair. the servicing of the car and even for the towing facility if it is required. The Bajaj Allianz General Insurance Company boasts of day and night service for the welfare of the client. Bajaj Allianz General Insurance offers discounts to clients if they go through a year without making a single claim.

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. Car insurance or two-wheeler insurance by Bajaj Allianz provides unmatched care and protection for your motoring experience. You rely on your vehicle for complete freedom of movement. Your vehicle is one of your most important possessions. 36 .50%. KEY BENEFITS OF MOTOR INSURANCE WITH BAJAJ ALLIANZ  Instant online policy issuance and renewal in easy steps. Give it the care and protection it deserves. Whether it is cashless settlement in preferred workshops or 24x7 claims support.  To locate a Bajaj Allianz's Preferred Garage nearest to you call at: 1800-209-0144(Toll free). 75% on account payment when cashless facility is not available.  Transfer your existing No Claim Bonus from any insurance provider ranging from 20% . You love taking long drives and commuting to office with the radio on. ISNURANCE CO.  Cashless claims at over 1500 preferred garages. the insurance plan for your car and two-wheeler has been designed with hassle-free claim settlement experience in mind.  Instant claims assistance and SMS updates on your motor claim status through our 24x7 call-centers.

 Bajaj Allianz' preferred workshops give you access to hassle-free inspection. ISNURANCE CO.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. 37 . high service standards and cashless settlement of claims in event of an accident/breakdown.  Towing facility in an event of a breakdown/accident 24x7 service by phone or online-even on holidays.

 Cashless claims at over 1500 preferred garages. Millions of car owners across India trust Bajaj Allianz to insure their car.  Get your Car Insurance or Car Insurance Renewal in easy steps.     Cashless settlement in over 1500 preferred workshops Hassle free claim settlement Quick and easy online purchase process 24x7 claims support Key BENEFITS OF CAR INSURANCE Our Car Insurance policy provides the following key benefits.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO. 38 .  Transfer up to 50% of your existing No Claim Bonus from any insurance provider. Along with comprehensive coverage against physical damage. Receive 75% on account payment when cashless facility is not available. bodily injury and cover against third-party liability. your motor insurance brings to you confidence and peace of mind. TYPES OF MOTOR INSURANCE POLICIES OFFERED BY BAJAJ ALLIANZ  CAR INSURANCE Your car insurance policy is the most important document in your vehicle. All this is backed by our superior claims servicing capability and fast settlement record for vehicles insured by us.

 Towing Facility in an event of a breakdown/accident.  Bajaj Allianz's preferred workshops give you access to hassle-free inspection and bring to you high service standards.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. 39 . even on holidays.  Avail of our 24x7 telephonic services for claims support and other assistance. ISNURANCE CO.  Instant Claims Assistance and SMS updates on your motor claim status through our 24x7 call-centers.

    Cashless settlement in preferred workshops Hassle-free claim settlement Quick and easy steps to purchase online 24x7 claim support KEY BENEFITS OF TWO WHEELER INSURANCE  Get your two-wheeler insurance or insurance renewal in easy steps.  TWO WHEELER INSURANCE Your two-wheeler is about freedom and the Bajaj Allianz two-wheeler insurance policy has been designed to set you free. theft and third party liability. 40 . even on holidays.  Transfer up to 50% of your existing No Claim Bonus from any insurance provider. Our comprehensive twowheeler insurance policy provides hassle-free protection to your bike or scooter against physical damage. Receive 75% on account payment when cashless facility is not available.  Towing facility in an event of a breakdown/accident.  Cashless claims at over 1500 preferred garages. ISNURANCE CO.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.  Instant claims assistance and SMS updates on your motor claim status through our 24x7 call-centers.  Avail of our 24x7 telephonic services for claims support and other assistance.

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.  Bajaj Allianz's preferred workshops give you access to hassle-free inspection and bring to you high service standards. ISNURANCE CO. 41 .

1. Your motor insurance with us brings to you confidence and peace of mind. passenger carrying vehicles.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. Permanent Total Disability – 42 .private and public carrier. death. miscellaneous and special types of vehicles. Accidental Death 2. death and property damage from any accident involving your vehicles. Bajaj Allianz offers "Liability only" Policies for commercial vehicles across the various classes of vehicles like goods carrying vehicles . it is essential to have your vehicles insured. We cover your legal liability towards third parties for personal injury. ISNURANCE CO. LIABILITY ONLY POLICY TO THIRD PARTIES COVERS THE FOLLOWING: Covers the legal liability for injury. Death or bodily injury to a third party 2. and/or property damage caused to a third party in the event of an accident caused by or arising out of the use of the vehicle. Damage to third party property Personal Accident Cover For Owner/Driver: 1.  LIABILITY ONLY INSURANCE POLICY In order to keep moving.

passenger carrying vehicles. it is essential to have your vehicles insured.  COMMERCIAL VECHILE INSURANCE In order to keep moving. Bajaj Allianz offers "Liability only" Policies for commercial vehicles across the various classes of vehicles like goods carrying vehicles . 43 .private and public carrier.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO. death and property damage from any accident involving your vehicles. miscellaneous and special types of vehicles. We cover your legal liability towards third parties for personal injury. Your motor insurance with us brings to you confidence and peace of mind.

The comprehensive cover comprises of:- 1) Damage to your vehicle . ISNURANCE CO.The policy covers you against any loss or damage caused to your vehicle or its accessories due to natural and manmade calamities as defined in the scope of coverage:- What is covered Exclusions Accidents & external Wear & tear.The policy covers the vehicle owner's legal 44 .MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. BAJAJ ALLIANZ MOTOR INSURANCE COVERS THE FOLLOWING: Bajaj Allianz offers a comprehensive cover that is designed to offer protection to you and your vehicle. mechanical or electrical damage breakdown Fire & explosion Consequential loss Riots & strikes A voluntary excess (if opted) Malicious act Other exclusions as per the policy Burglary / Driving without valid driving license housebreaking / theft Transit The vehicle being driven by a person under the influence of alcohol or drugs at the time of the loss Earthquake Storm and flood 2) Third party legal liability . depreciation.

1lakh for two wheelers. ISNURANCE CO.5lakhs under commercial and private car and up to Rs. liability to What is covered pay compensation for:- Exclusions Legal protection for Damage to your personal property death or injury claims from third parties. including occupants of your vehicle Costs and expenses Legal protection for damage to third party property incurred without the prior written consent of Bajaj Allianz Personal accident Legal costs and expenses benefits for you. your paid driver occupants of and your vehicle Other exclusions as per the policy Protection of your legal liability towards your paid driver Liability is covered for an unlimited amount with respect to death or injury and damage to third party property for up to Rs. 45 .MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.7.

2lakhs for a premium of Rs.100.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. 46 . ISNURANCE CO.The policy provides compulsory personal accident cover for individual owner / driver of the vehicle for up to Rs. 3) Personal accident cover to driver (owner) .

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. THREE DIFFERENT PLANS TO CHOOSE FROM: Features Best Value (?) Standard (?) Flexible (?) Premium Cost Low Regular Enhanced Coverage Low Regular Enhanced Own Damage Low Regular Enhanced Premium (?) Low Regular Enhanced Coverage for Electrical accessories Optional Coverage for Non-Electrical Optional Optional accessories Optional Optional Optional PA-Cover for co-passenger (?) Optional Optional Optional CNG Kit Coverage Optional Optional Optional Driver Cover Optional Optional Optional NCB Discount Optional Optional Optional Voluntary Deductible .Save Premium Optional Basic Third Party Liability (?) PA-Cover for Owner/Driver (?) Depreciation Shield Engine Protector 24/7 Roadside Assistance 47 Optional . ISNURANCE CO.

 The benefits under this cover is available only once during the policy period. you get some unmatched extra features without any extra cost.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.  In the event of a security risk arising out of the incidence of lost keys of your vehicle. we will cover the cost of installing new locks.  Key and Lock replacement cover (Only for new online Bajaj Allianz customers)  24 X 7 spot assistance cover  EEZEE Card (For Renewal Customers)  Personal Care Policy (Only for Skoda and Volkswagen)  DRIVE ASSURE PRIME KEYS AND LOCKS REPLACEMENT COVER(ONLY FOR NEW ONLINE BAJAJ ALLIANZ CUSTOMERS)  In the event of irrecoverable loss of keys of your car. ISNURANCE CO. we will cover the cost of replacement of keys. 48 . With every car insurance policy bought online. Your Bajaj Allianz Car Insurance is not just a policy document. Along with being an insurance cover it makes your driving a great experience. subject to the specified sum insured for this cover. VALUE ADDED SERICES Value Added Services refers to advanced and/or additional services given to customers.

4. Space Keys: In the event of you losing the keys of your car. 49 . we will arrange for the refill and /or replacement of the flat tyres. 5. Flat Tyre: If your car gets immobilized due to flat tyres. 3. we will send urgent message on your behalf to the specified persons through available means of communication. 24X7 SPOT ASSISTANCE If your car is immobilized. 2. Fuel Assistance: If your car gets immobilized due to fuel problems. we will arrange for the pickup and delivery of spare keys to the spot where your car is located. we will either arrange for fuel supply or for carrying out repairs. we will arrange for minor mechanical or electrical repairs. you will be entitled for one or more of the following benefits: 1. ISNURANCE CO. Message Service: If your car gets immobilized as a result of accident and/or breakdown. Flat Battery: If your car gets immobilized due to a flat battery. we will make alternative arrangements to make your car mobile again. 6. Minor Repairs: If your car gets immobilized at the roadside.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.

16. 7. we will provide hotel accommodation for the occupants of your car for a maximum of two days and two nights limited to Rs.Accommodation Benefits: If your car meets with an accident / breakdown taking place beyond 100 km from your city and repairs for which will take more than 12 hrs. 2000 per person per day and maximum total of Rs. ISNURANCE CO. 10. 11. 50 . Towing Facility: If your car gets immobilized by reason of an accident/breakdown. we will provide a Taxi or any other transportation service to transfer the occupants of your car to a single destination within 50 km from the spot of immobilization. you can call us to obtain details regarding the nearest medical center that can provide emergency relief services. Medical Co-ordination: If you meet with an accident while travelling in your car. we shall arrange for a free towing away of your car from the accident spot to the nearest authorized dealer/workshop. Legal Advice: If you meet with an accident while travelling in your car. 8.Taxi Benefits: If your car meets with an accident / breakdown taking place within 100 km of your city.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.000 throughout the Policy Period. 9. you shall be entitled for a free legal advice up to 30 minutes from a legal advisor over the phone.

pathological investigations. lenses. Discount on Radiology at select outlets. WHAT DOES AN EEZEE CARD DO An EEZEE Card makes you eligible for a number of discounts at health and fitness centres across the country. Dental Care 51 . WHERE YOU CAN USE YOUR EEZEE CARD Various outlets where the EEZEE Card benefits can be availed are: Health Care  Religare SRL Diagnostics: Wellness offer . at our tie-up network service providers. Some of the benefits provided by the EEZEE Card are:      OPD discounts at select outlets. Discounts on Pathologies at select outlets. select surgical procedures. AN EEZEE CARD EEZEE Card is part of the benefits you receive when you renew your car insurance with Bajaj Allianz at the Renewal Notice Price. etc. dental care. optical frames.  Dr Batra's: Complete Health consultation with computerized hair test at Rs.20% discount on pathology and non-pathology tests applicable on pan-India wellness centres.99 only and 25% discount on treatments. Discounts on Wellness Test at select outlets. ISNURANCE CO.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. The EEZEE Card aims to offset the rising cost of medical procedures and treatment by enabling discounts on certain medical expenses like OPD. Many more lucrative health related offers at select outlets.

450/. 15% discount on selective sunglasses.1000.only. free repairs and services.  Vasan Dental Care: Complimentary consultation and x-ray. 10% discount on sunglasses except Ray Ban.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. 50% discount on frame glasses and 30% discount on branded product.450/.5000.5% discount on contact lenses. 7. 52 .150/. ISNURANCE CO.for Rs. sunglasses and contact lenses. 30% discount on scaling and polishing. 10% discount on all other dental treatments.  GKB Optical: Free eye testing.  Foresight Optical: Discount of 15% on frames and glasses excluding Cartier and Mont Blanc. Eye Care  Lunettes Eyewear Studio: Free eye testing. 20% discount on contact lenses.5% off on all brands. 15% discount on purchase of spectacles above Rs.only. sunglasses up to Rs. 5% discount on implants and invisalign orthodontics. 7. 20% discount on purchase of spectacles above Rs. 10% discount on all other dental treatments. colored contact lenses for Rs. free trial pair of contact lenses. 15% discount on sunglasses excluding Ray Ban and Oakley. 10% off on purchase of frames.  Religare SRL Diagnostics Dental Offer: Complimentary consultation.  Vision Tech Optics: Free computerized eye check-up.  Lawrence and Mayo: Free precision eye test. 50% discount on consultation with affiliated doctors. free home delivery. 10% discount on contact lens solution.3000. 10% discount on purchase of spectacles above Rs. 30% discount on scaling and polishing.

53 Cardiac Clinics: Get free . Fitness  Five Fitness: 15% discount on gym membership of above 3 months. Lotus Clinic Hub  Lotus Clinic Hub: 10% discount on all the treatments. Sanecare Madhavbaug Ayurved Cardiac Clinics  Sanecare Madhavbaug Ayurved consultation. NL Health Care  NL Health Care: up to 40% discount on all surgical equipments and fitness Equipments. ISNURANCE CO.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN.

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO.

 PERSONAL CARE POLICY (only for Skoda and Volkswagen car
owners)
They have designed a unique insurance product meant exclusively for
persons like you, who have purchased a car by taking a car loan from a financial
institution/company.

This unique product, aptly titled 'Personal Care Insurance Policy', will
provide you with multiple insurance benefits and ensure that your live life to the
fullest!
Personal Care Policy gives you the benefit of:
 Personal Accident Care: Cover for accidental death, weekly benefit in
case of temporary or total disability.
 Payment Protection Care: Cover for outstanding loan on car in the
event of accidental death or permanent total disability.
 EMI Care: Cover for up to three EMIs in case of temporary total
disablement.
 Medical Expenses Care: Cover for hospital expenses arising from
accident.

54

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO.

CLAIMS IN MOTOR INSURANCE
Motor Insurance business in India is generally considered to be an
unprofitable class of business. In recent years, the claims under motor insurance
have shown signs of deterioration. With the increase in the number of vehicles
and traffic density, higher costs of labour and spare parts and escalating awards
for third party claims, control of claims cost is imperative.
The Insurance Companies in India are therefore required to pay the
compensation amount to accident victim or the family members within 90 days.
If the insurance company fails to do so, then the Motor Accident Claims
Tribunals (MACT) must impose a penalty of Rs 5,000 on such companies for
the delay. If after 90 days the insurance company fails to pay the amount it shall
be the duty of the banker to deposit the cheque drawn in the name of claimant
with the MACT in one week of 90 days expiry period.
Most of the people perceive that procedure involved in claiming insurance is
not too complicated and cumbersome. Smaller claims are processed within a
period of two weeks but larger claims involve more procedures at the insurance
company’s office and thus take longer time.

55

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. ISNURANCE CO.

MOTOR INSURANCE CLAIM PROCESS AT BAJAJ
ALLIANZ GENERAL INSURANCE COMPANY
To register an insurance claim, you need to follow a simple and easy
process.
Once you register your claim with the Toll Free Number - 1800-209-5858,
you will receive SMS updates to guide you through each stage of the process.
Follow the steps provided below to understand our insurance claims process in
detail.
STEP 1: SEND YOUR VEHICLE FOR REPAIR
In case of an accident, take your vehicle to the garage (if movable) or have it
towed to avoid further damage.
 For Theft Claims: In case of a theft claim, file a police complaint

immediately in writing and inform the insurance company.
If

your vehicle isn't found within 90 days, ask the police to issue you a

Non-Traceable Report. This is an undertaking given by the police that they are
yet to find your vehicle; you need to submit this report to the insurer and start the
claim process after this.

STEP 2: REGISTER YOUR CLAIM
Register your claim with the insurance company first.
You will need to provide the following information to the customer support
executive:-

56

ISNURANCE CO.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. the customer support executive will provide you with a Claim Reference Number. reading Once the claim is registered. You will be updated through SMS on every stage of the claim OR you can call and quote the Claim Reference Number to know the status of your claim STEP 3: SURVEY AND CLAIM SETTLEMENT Documents Required: Submit the copy of documents to the garage / dealer and get It verified with the originals.  Contact number  Engine and Chassis Number  Accident date and time  Description and location of the accident  Vehicle inspection address  Km. 57 .

Police FIR copy 3. Original repair invoice. Policy copy (first two pages) 5. After completion of repair at a preferred garage we will make payment of the loss directly to the garage. Stamp required in case of company registered vehicle's original documents. Claim form duly signed by the insured* 2. 29. we suggest that you avail spot settlement of claims through Bajaj Allianz Mobile Settlement Service. Driving license copy** 4. RC copy of the vehicle 3. Driving license copy** 4.only repair invoice) For Theft Claims 1. For Accident Claims 1. Claim Settlement: 1.A no-trace report from the police saying that the vehicle cannot be located For Third Party Claims 1. Driving license copy** 4. Original FIR copy of the complete theft report 6. Policy copy 5.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. payment receipt (for cashless garage . 30 and 35 (if hypothecated) 7. RC copy of the vehicle with all original keys 3. RC copy of the vehicle 6. FIR 6. Claim form duly signed by the insured* 2. Final report . Original policy copy 5. Spot Settlement: If the loss is not much. You will only have to pay the excess as mentioned in the policy and the 58 . Original estimate 7. 2. Claim form duly signed by the insured* 2. ISNURANCE CO. RTO transfer papers duly signed along with Form numbers 28.

MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. salvage etc. ISNURANCE CO. 59 . depreciation value. as informed by the surveyor.

the divisional manager of National Insurance Company which had insured all his vehicles. "Following a burgeoning loss ratio. According to the circular." he said. These will henceforth be accepted only at liability. it has changed the mode of accepting premiums. Comprehensive insurance policy covers third-party liability as well as damages suffered to vehicles. "Drive carefully. 60 .MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. However the decision to provide comprehensive cover has been left to the discretion of field officers. His truck driver asked him the reason for the emphasis on repairs.” said Reddy. Comprehensive cover is being discouraged. the owner of a transport company was giving instructions to one of his truck drivers in the wake of new guidelines for insuring commercial vehicles. CASE STUDIES  Changing Trends in Commercial Vehicles Insurance in India: Swami Dorai. ISNURANCE CO. commercial vehicles over seven years old will be insured only for third-party liability. “Although the company has not stopped insuring old commercial vehicles. Dorai went to meet Krishna Reddy. the state-run general insurance companies are no longer going to provide comprehensive insurance cover to commercial vehicles (CVs) over seven years old. to talk about the issue." replied Dorai. complete this trip without any major repairs. Insurance companies issued a circular directing branch and divisional offices to stop accepting comprehensive insurance policies for vehicles over seven years old from 2002. The insurance cost for motor vehicles was perceived to be too high.

the vehicles are in good shape and the insurer is benefiting as his claims are less than what he pays as premium. ISNURANCE CO. The objective of regulation has been to make insurance available to all motor vehicle operators. The other reason is that the insurers have detected fraudulent transactions while claiming damages. Thus the insurers make huge losses as the claims exceed the amount collected through premiums. In case of accidents causing death or injury. Though Mr Dorai possesses old vehicles. even if there are more than the numbers prescribed. thus he asked Reddy to increase the premium amount. 61 . This is one reason why insurance companies are discouraging third party cover and have curtailed commission to agents. Reddy then told Dorai that taxies carry more passengers than prescribed. the insurance companies have to bear the liability of all the passengers.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. Solution:-The insurers should not to provide insurance for commercial vehicles as the claims ratio in the motor vehicle insurance category has been consistently high in the past. It is necessary to develop fleet safety programs (by transporters).

H walking away from his car with the carpet. although he hadn't walked far from the car. H came to us. H had turned his back on the car after leaving it in a public place and he was completely oblivious to the theft until after it had happened.theft recorded on CCTV. Mr. We therefore rejected his complaint. He had left the keys in the ignition and. so he was unlikely to have been able to prevent the theft. This showed Mr. While he was disposing of the carpet. Mr.whether firm right to use key in car exclusion to refuse claim. The firm turned down Mr. We agreed that the firm had been correct in turning down the claim on the grounds of its "keys in car" exclusion. Complaint rejected: The firm's decision not to pay the claim was based on CCTV footage that it obtained from the council. a document that every motorist is required to have by law. The firm had highlighted it very clearly on the policy certificate. Mr. ISNURANCE CO. In this instance.  Key left in car. H drove to the council-run tip to get rid of an old carpet. He only realized that his car was gone when he turned back towards where he had left it. It also appeared that he had left the car's engine running. H's claim because he had left his keys in the car.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. He had walked a fair way from his car. When it rejected his complaint about this. someone stole his car. 62 . Mr. he did not hear or see anything suspicious. H had no excuse for not being aware of the policy exclusion.

the insurance company also provided incentives to the insured in terms of “No Claims Discount” i. Further. there have been differences in the way these policies have been implemented in India. like other insurance markets in India. The market. All these are in line. ISNURANCE CO. with the automobile insurance policies in force in a number of developed markets. ISSUES AND CHALLENGES The Motor Insurance industry in India has been in existence for a long time. These issues have been existent for a long time but never came to the fore in the days of the tariff regime and government controlled insurance market. has been detariffed and thus different players can come up with different products and not be bound by the tariff rules laid down by the Tariff Advisory Committee (TAC) Motor Insurance in India in some sense has been similar as anywhere else in the world. the insured would get a discount on the premium of the next year subject to a maximum discount possible.there have been different kinds of products but mainly the protection is towards any damage suffered by the insured. at least.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. if there was no claim made in a particular year. Some of the major issues are as follows: 63 .e. some of these issues have become really relevant and needs to be looked at with greater scrutiny. This means that the insured could claim damages from the insurance company against the costs for damages caused due to an accident. However. But with about a decade of liberalization of the insurance sector in India and the detariffication of the market in recent times.

mainly in the developed world. especially from the perspective of the middle-aged experienced driver who should see a reduction in the premium cost but in effect sees no different from someone such younger and inexperienced. the insurance company is not compensated for the additional risks it takes by insuring old drivers as the premium charged cannot be modified to take care of such issues. The age of the driver and the age of the driving license have no relation to the premium amount: The likelihood of an accident due to speeding is linked to two main factors:  Age of the driver  Age of the driving License It has been observed that younger drivers are more prone to speeding and thus have a higher probability of being involved in high speed crashes and accidents leading to huge claims on the insurance policies. Very old drivers have been observed to have high probability in being involved in accidents due to their slowness in reflexes or other medical conditions. 64 . In fact. This kind of movement on the premium values is needed to ensure that the insurance company is well covered in terms of the risks it faces by selling the insurance policies. the insurance premium is dependant not on the age or the experience of the driver but on the age of the policy in question. Internationally.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. these conditions are considered while pricing the motor insurance policies. This implies that young and new as well as old drivers pay more in terms of premiums on their motor insurance policies as compared to middle-aged drivers with a relatively old driving licence. Similarly. However. ISNURANCE CO. This is not necessarily the best strategy. Indian markets observe none of these.

65 . Such issues or factors need to be considered by the insurers while formulating the policies and deciding on the level of premium associated with the policies. It is a fact that the premium on the car is dependent on the size of the engine of the car. Obviously. ISNURANCE CO. The type of the car has no relation to the premium charged: This is another major issue that needs to be tackled by the motor insurance industry in India. but then it has to be realized that other factors also need to be taken into consideration while determining the premium value for the insurance. let’s assume that there are two cars with the same engine size. the premium of the sport car should be more.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. One standard reason why it is not so prevalent is the fact that there are very few sports cars in Indian markets.that is because the likelihood of a sports car speeding and therefore being caught in an accident is higher than that of the family car. as compared to the motor market in any developed country. For instance. This is something that is yet to be done in a large way in India. But let one car be a sedate family car while the other is a sports car.

as in any other part of the world have “No Claims Discount” system built into them. This is an issue in India as the information that is available to the insurers is only based on the information reaching them when a claim is made. the amount paid out as premium decreases) and the insured (has better information about the insurer and hence can plan better). There have been a large number of studies that have been carried out on the need of such schemes as well as the efficacy of such schemes. A point that needs to be made here is the fact that such biases would be removed with the availability of better information about the driving habits and patterns of the insured population. This is effectively used as a means of rewarding “Good Drivers” for the fact that they have been good drivers and not caused any accidents which has resulted in claims to be settled by the insurer. What this results in is the fact that the better drivers end up in subsidizing the not so good drivers. the policyholders do not make a claim because the no claims benefit exceeds the cost of repair and thus makes sense to get it repaired without making a repair. it has often been seen that the schemes are not appropriately designed. ISNURANCE CO. The “No Claims Discount” policy in effect lands up subsidizing the “Bad Drivers” at the cost of the “Good Drivers”: All automobile insurance policies in India.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. The “Claims settlement” process is really not completely geared up to meet all kinds of challenges: 66 . While such schemes are useful for both the insurer (over a period of time. An effective “No claims Discount” scheme should not have such biases and insurance companies should look at their portfolio and try and ensure that such biases do not remain. In large number of cases.

While insurance companies have made significant strides towards the timeliness of the disbursement of the accepted claims and in large number of cases there are cashless claim settlement processes which are in place but all these work on the premise that the claims are accepted as genuine by the insurer. 67 . ISNURANCE CO.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. This has been the single largest issue in the automobile insurance sector in India for a large number of years. The basic problem is the authenticity of the claim made and the time taken to settle the same by the insurance company.

The company does a lot of survey & analysis in the market to discover customer’s needs & expectations & tries to improvise on its existing market linked plans along with insurance policies.  Continuous increase in cost and charges for labour & parts and higher awards for third party claims are pushing the claims ratio up. In addition to this . the company from time to time keeps on introducing various new policies & tailor made plans exclusively to cater peoples’ financial needs. is an area which all insurers want to develop.  Motor insurance especially private cars. SUGGESTION AND CONCLUSION The current state of motor insurance as prevailing today can at best be summarised as below  Insurance has become the important driver for dealer profitability and customer satisfaction.MOTOR INSURANCE POLICIES IN BAJAJ ALLIANZ GEN. BAJAJ ALLIANZ. ISNURANCE CO. in the present scenario is growing at an aggressive pace. This has enabled BAJAJ Allianz to become market leader in the sector of insurance & investment companies since 2001 when it came into existence 68 .