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INTRODUCTION
As per the Motor Vehicles Act, all vehicles that ply in the public place
should possess the compulsory third party insurance cover. It is the
single largest portfolio. Motor Insurance premium comprises of nearly
40 - 50% of the total premium. The total premium is estimated to be around Rs 6000 crores. Motor portfolio is one portfolio where the premium flows
through out the year.
RISK COVERED
Own damage Third party liability
VEHICLES COVERED UNDER INSURANCE
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Private car
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Motor cycle
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Commercial vehicles goods carrying
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Passenger carrying vehicles
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Miscellaneous
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Ambulances, bulldozers, road rollers
VALUATION
Sum insured in Motor Policy is also known as Insured
Declared Value (IDV).
Sum insured under Motor Policy is different as it represents per
Accident Limit and not per Policy Limit.
Eg:A Maruti 800 which is insured for Rs 1.40 Lakhs, can have several
claims cumulatively greater than Rs 1.4Lakhs. Re - instatement of Sum
insured by pro - rata payment of premium need not be done.
VINTAGE CAR
Any car manufactured prior to 31-12-1940 and duly certified by the
Vintage and Classic Car Club of India can be considered a Vintage car
for the purpose of this tariff.
Discount allowed is 25% on Own Damage Premium.
VALUED POLICY
Under an Agreed Value Policy a specified sum agreed as the insured value
of the vehicle is paid as compensation in case of Total
Loss / Constructive Total Loss of the vehicle without any deduction for
depreciation.
It is not permitted to issue Agreed Value Policies under this tariff
excepting for policies covering vintage cars.
CLASSIC CAR
Any car manufactured after 31-12-1940, but before 31-12-1970, is
considered as a Classic Car by the Vintage and Classic Car Club of
India. There is however, no provision for special rating or cover for
such vehicles under this tariff.
IMPORTED VEHICLES
Policies issued to cover imported vehicles belonging to Embassies,
Consulates etc. where the 'import duty' element is not included in the
IDV the premium chargeable under Section – I (loss of or damage to the
vehicle insured) of the policy shall be loaded by 30%.
DISCOUNTS
The insured is entitled for a No Claim Bonus (NCB) on the Own Damage
section of the policy, if no claim is made or pending during the
preceding year(s), as per the following:
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Period of insurance % of NCB on OD premium
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The preceding year 20%
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Preceding Two consecutive years 25%
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Preceding Three consecutive years 35%
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Preceding Four consecutive years 45%
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Preceding Five consecutive years 50%
AUTO ASSOCIATION DISCOUNT
Members of valid Auto Association will get a discount of 5% of the OD
premium subject to a maximum of Rs.200 for private cars and Rs.50 for
Motor cycles.
DISCOUNT FOR ANTI THEFT DEVICES
Discount for Anti theft devices are provided if certified by ARAI of
2.5% of the OD premium subject to a maximum of Rs. 500 on Own Damage
Component.
USE OF VEHICLES WITHIN INSURED'S PREMISES
Vehicles confined to own premises are available for a discount of 33.33%
on the applicable Tariff rate. Use confined to own premises’ shall mean
use only on insured’s premises to which public have no general right of
access.
COMPULSORY DEDUCTIBLES
Claims under Own Damage section of policies covering all classes of
vehicles are subject to a compulsory deductible.
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Private car not greater than 1500 cc - Rs 500
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Private car greater than 1500 cc - Rs 1000
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Motorized two wheeler - Rs 50
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Electrical / electronic fittings
If electrical and or electronic items fitted to the vehicle but not
included in the manufacturer’s selling price of the vehicle are to be
insured, it can be done separately under Section - I (loss of or damage to
the vehicle insured) of the package policy at an additional premium @ 4%
on the value of such fittings. Electrical and electronic fittings
include:
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Electric horns
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Air conditioner
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CD player etc
USE OF CNG / LPG FUEL
In case of vehicles fitted with bi-fuel system such as Petrol / Diesel and CNG / LPG, permitted by the concerned RTA, the CNG / LPG kit fitted to the
vehicle is to be insured separately at an additional premium @ 4% on the
value of such kit.
An additional premium of RS. 60/- per vehicle to be charged towards
liability Only cover on account of CNG / LPG system.
FIBER GLASS FUEL TANKS
All policies covering vehicles fitted with fiber glass fuel tanks will
attract an additional premium of Rs. 50/- in the Own Damage section
excepting vehicles ratable under class D of Commercial Vehicles Tariff
where the additional premium will be Rs. 100/-.
HANDICAPPED AND MENTALLY CHALLENGED PERSON
In case of vehicles specially designed / modified for use of blind,
handicapped and mentally challenged persons, a discount of 50% may be
allowed on the Own Damage premium in respect of both privately owned
vehicles.
PRIVATE CARS
Perils covered
Explosion / lightning / self Ignition.
Social Perils: RSMTD
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