Motor insurance
- 2. TOPIC- MOTOR INSURANCE CONCEPT NATURE OF CONTRACT TYPES OF POLICIES
- 3. WHAT IS MOTOR INSURSNCE? • MOTOR INSURANCE IS A COMBINATION OF TWO WORDS I.E MOTOR + INSURANCE • MOTOR UNDER THE MOTOR VEHICLE ACT 1939, IS A SELF-PROPELLED VEHICLE • INSURSNCE WE ARE VERY MUCH AWARE THAT IS PROTECTION AGAINST ANY ‘UNFORESEEN RISK’ • THE ‘UNFORESEEN RISK’ IS AN INCIDENT WHICH CAN’T BE FORESEEN I.E WHICH MAY OR MAY NOT HAPPEN
- 4. • A) IT MAY RESULT IN TO EITHER CREATION OF LIABILITIES OR • B) WILL RESULT TO FINANCIAL LOSSES. • INJURIES /DEATH OF PERSON/S AND “A” • DAMAGE OF PROPERTY. (LIABILITIES) • DAMAGE TO THE VEHICLE ITSELF AND • THEFT OF PARTS OR THE THEFT OF THE “B” VEHICLE ITSELF (FINANCIAL LOSSES)
- 5. • THUS,MOTOR INSURANCE IS A PROTECTION AGAINST THE RISK EXPLAINED EARLIER, IN ORDER TO: 1. OVERCOME THE LIABILITIES AND 2. THE FINANCIAL LOSSES ASSOCIATED WITH THE ACCIDENTS
- 6. Motor Vehicles Act, 1988 • Motor Vehicles Act passed in 1939 and amended in 1988.
- 7. TYPE OF MOTOR INSURANCE
- 8. NATURE OF CONTRACT OF MOTOR INSURANCE 1) NOTICE OF ACCIDENT:.SHALL BE GIVEN IN WRITTEN IMMEDIATELY ON THE OCCURRENCE OF ANY ACCIDENT OR LOSS OF OR DAMAGE TO THE VEHICLE.
- 9. 2) SUPPLY OF INFORMATION: THE INSURED IS REQUIRED TO GIVE ALL SUCH INFORMATION AND ASSISTANCE AS THE COMPANY REQUIRED. 3) KEEPING THE VEHICLE IN GOOD CONDITION:
- 10. 4) Double insurance: In case of double insurance claim can be taken in pro-rata from the insurance company. 5) Utmost good faith: Charity is done without consideration but in the case of insurance, premium is paid by the insured to the insurer in consideration of future payment.
- 11. 6) ARBITRATION CLAUSE: When both the parties do not agree on claim, the decision of the arbitrator will be final.
- 12. 7) RENEWAL OF POLICY: WHEN THE POLICY IS RENEWED , A BONUS IN THE FORM OF REDUCTION OF RENEWAL PREMIUM IS ALLOWED, PROVIDED THERE WAS NO CLAIM IN THE PREVIOUS YEAR. 8) POLICY INFORMATION: POLICY NO. NAME OF THE COM. NAME AND ADDRESS OF THE INSURED PERIOD OF INSURANCE AND GEOGRAPHICAL AREA REGISTRATION NO. HORSE-POWER YEAR OF MANUFACTURE VALUE OF CAR INSURED DATE OF PROPOSAL AND THE AMOUNT OF PREMIUM NAME OF THE DRIVER HAVING A DL TO DRIVE
- 13. 9) CANCELLATION OF POLICY: THE INSURED MAY CANCEL THE POLICY AT SEVEN DAYS’ NOTICE AND DEMAND THE RETURN OF THE PORPORTIONATE PREMIUM, PROVIDED THAT NO CLAIM HAS ARISEN DURING THEN THE CURRENT PERAIOD OF INSURANCE.
- 14. TYPE OF MOTOR POLICIES 1) ACT ONLY POLICIES: This policy safeguards you against legal liability arising out of the use of your vehicle towards third parties leading to bodily injury to / on death of a person and any damage caused to the third party property. 1. Personal accident cover : * Available only if the owner of the vehicle holds a valid driving license. 2. Additional Legal liabilities for: • Paid driver / conductor / cleaner employed in operation of vehicle • Employees travelling in / driving the vehicle other than paid driver. • Non-fare paying passengers
- 15. 2) THIRD PARTY POLICY Motor third-party insurance or third-party liability cover, since the beneficiary of the policy is someone other than the two parties involved in the contract (the car owner and the insurance company). The policy does not provide any benefit to the insured. However, it covers the insured's legal liability for death/disability of third-party loss or damage to the third-party property.
- 16. 3) COMPREHENSIVE POLICY THIS POLICY COVERS ALL RISKS TO BE INSURED ARISING OUT OF LEGAL LIABILITY I.E. TO THIRD PARTIES UNDER MOTOR VEHICLE ACT, TOTAL ACCIDENT AND COMMON LAW. IT ALSO COVERS LOSS OR DAMAGE TO VEHICLE. COMPREHENSIVE MEANS ALL INCLUDED IN ONE. BUT IN PRACTICE ALL RISK ARE NOT COVERD. IT EXCLUDES MANY RISKS.
- 18. The risks covered are: a) Fire, explosion, self-ignition or lightning. b) Burglary, house breaking or theft. c) Riot and strike. d) Earthquake (fire and shock damage) e) Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost. f) Accidental external means. g) Malicious act. h) Terrorist activity. i) Transit by road, rail, inland waterway, lift, elevator or air. j) Landslide /rockslide.
- 19. Exclusions • Contractual liability. • War perils, nuclear perils. • Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown. • Damage suffered due to driving the vehicle under the influence of intoxicating liquor or drugs. • Claims arising when the vehicle is driven by a person without valid driving license.