MOTOR INSURANCE

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Types of Policies  

There are two types of Policies : (i) Liability Only Policy: Covers Third Party Policy: Liability for bodily injury and/ or death and Property Damage . Personal Accident Cover for Owner-Driver is Owneralso included. (ii) Package Policy: Covers loss or damage to the vehicle insured in addition to (i) above.
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What is Covered Under a Motor Policy?

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Own Damage Inclusions
Damage or loss to insured vehicle caused by: 
      

Fire explosion, self ignition, or lightning Burglary, housebreaking or theft Riots or Strike Act of God perils (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) Malicious act (Intentional damage or destruction of another person or business¶s property)

Land slide/Rock slide Terrorist activity
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Accessories 

Electrical & Electronic Fittings: Electrical/Electronic items that are additionally fitted (not included in the manufacturer¶s selling price of the vehicle) can be insured at an additional premium of 4% on the value of such fittings This has to be specifically declared by the insured in the proposal form &/or in a letter forming part of the proposal form.

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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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Check your understanding 

What is the amount added to the premium for inbuilt accessories?

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There is no additional premium charged for inbuilt accessories. The cost of the accessories are 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 the customer?

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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% of Rs.18,000/- = Rs. 720/- & Rs. 60 under liability section.

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Personal Accident Cover    

Personal Accident covers the insured in the event of the person sustaining bodily injuries resulting solely and 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 per passenger Two Wheeler Owner Driver Compulsory for Rs. 1,00,000/14

Scope of Cover - Compulsory PA for Owner-Driver Owner-

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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 per Workmenµs Compensation Act.) Liability to employees  

 

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Liability Any loss or damage to third party 
 

Third party Insurance covers the liability arising out of any permanent injury/ death to a third person caused by the insured car/two wheeler It also covers all the legal expenses incurred for defending the third party claim accident involving his/her vehicle Third party Property Damage Any damage caused to the property of a third person by your vehicle due to an accident Damage to third party property is covered upto an amount of Rs. 7. 5 lacs for private car and Rs. 1.0 lac for two wheelers.
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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 for bodily 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 Insurance cover everything?

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General Exclusions 
  

 

Consequential Loss due to accidents (secondary losses suffered as a consequence of an original loss) Damage to tyres & tubes without the vehicle being damaged Driver being under the influence of liquor and drugs at 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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Exclusions - Contd 
  



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 by radioactivity Losses caused due to nuclear weapons material Losses caused due to war and war like situation

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Check your understanding

Is an OD claim, caused after consumption of alcohol, a valid claim ??

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