Motor
Customers
As per the provisions of the Motor Vehicles Act it is compulsory for all owners of vehicles plying in a public place to possess a valid Third Party Liability cover as prescribed in the ACT of Section 146 of Motor Vehicles Act 1988.
This is a basic Insurance cover. In case the vehicle is also to be insured then a Comprehensive Cover is to be availed of – which will cover both the ACT Liability as well as the vehicle (or OWN DAMAGE). Whenever vehicles are purchased by taking out a loan, financiers insist upon a Comprehensive Policy to take care of their interest as collateral security.
Cover
Third Party Insurance.
The scope of cover is to pay compensation for death of or bodily injuries to third parties and damage to the property of third parties as per the MV ACT Provisions.
This policy provides personal accident cover to owner- driver.
While the compensation for the personal injuries to third parties is unlimited, property damage is limited to Rs. 7,50,000.
Package Policy (Comprehensive)
The perils covered are:
- Damage to vehicle by accidental external means, fire, lightning, explosion, self-ignition, Burglary
- Housebreaking
- Riot & strike, malicious acts and terrorist acts
- Earthquake, Flood, inundation, cyclone etc
- Landslide/ rockslide while in transit by rail, road, air, inland waterways, lift or elevator
The above is only an indication of the perils covered and depending on the type of vehicle (especially usage) the scope would vary.
The geographical limits for use of the vehicle is India but the limits can be extended to Bangladesh, Bhutan, Pakistan, Nepal, Sri Lanka and Maldives by charging an extra premium of Rs. 500 for package policy and Rs. 100 for Liability policies.
Policies can be issued for periods less than one year. In such cases, short period scales are charged, which are higher than pro-rata rates.
No claim Discount: For every claim free year, the insured is rewarded with discounts in premium up to an extent of 50% (Package policy only). In case of a claim in any year, bonus earned till that year is wiped out. In case of adverse claims, premiums maybe loaded.
Premium
The premium broadly depends on:
- The type of vehicle, purpose of use and Model-manufacturer,
- Power and Type of its engine,
- Age of the vehicle,
- Value,
- Geographical Areas where vehicle is used,
- Particulars of the Driver,
- Past history.
- Extra Benefits can be availed of for higher premiums.
- Emergency Assistance, Zero Depreciation, Engine and Gear Box Protector,
- Cost of Consumable.
- Discounts are available.
- For No claims, Limited Third Party Property Damage.
- Anti Theft devices fitted on the vehicle.
- Member of Automobile Association.