Motor (Vehicle) Insurance

Motor Insurance in India is mandatory for any vehicle (like Private Cars, Motorized Two Wheelers and Commercial Vehicles as defined in the Motor Vehicle Act excluding vehicles running on rails) designed to run on public road. Motor Insurance was earlier guided by India Motor Tariff, which is being phased out by the regulator Insurance Regulatory Authority of India (IRDAI). Instead, Company wise guidelines are being placed though. But Act Liability (Third Party) premium pricing is still guided by IRDAI.

Motor Insurance in India cannot be transacted outside the purview of Motor Guideline unless specifically authorized by Head Office. For risks which have not been provided for, in these guidelines, reference should be made to HO for advice thereon. Rates provided under guidelines are minimum rates for our Motor products filed with Insurance Regulatory Authority of India (IRDAI).

Loading on premium rates upto 100% may be applied for adverse claim experience of the vehicle insured and individual risk perception as per Company’s assessment.

There shall be no refusal of cover in any case for Liability Only Cover. Motor Liability (Third Party) premium is being reviewed every year by the IRDAI and being amended which would be applicable from 1st April every year.

Geographical extension to SAARC (Bangladesh, Bhutan, Nepal, Pakistan, Sri Lanka and Maldives) countries may be allowed by charging a flat additional premium:

Package Policy at Rs.500/- per vehicle

Liability Only Policy at Rs.100/- per vehicle (for any class of vehicle)for a period not exceeding 12 months.

This extension specifically excludes cover for damage to the vehicle / injury to its occupants / Third Party Liability in respect of the vehicle during transit (air passage/ sea voyage) for the purpose of ferrying the vehicle to the extended Geographical Area.

Agreed value policies can be issued to Vintage Cars (manufacture prior to 31.12.1940)and Classic Cars (manufactured after 31.12.1940 and before 31.12.1970) subject to its certification by Vintage and Classic Car Club of India.

Types Of Motor Policies

There are two types of annual policies:

i.

Liability only Policy: This covers Third Party Liability for bodily injury and/or death and Property Damage. Personal Accident Cover for Owner-Driver is also included.

ii.

Package Policy: This covers loss of or damage to the vehicle insured (Own Damage)in addition to (i) above.

Restricting the scope of cover under Section-I (loss of or damage to the vehicle insured) of the Package policy without any reduction in Guideline rates is permitted. Excepting this, no alteration or extension of any of the Covers, Terms, Conditions,Exclusions, etc., of any of the Policies/Endorsements laid down in the Guideline is permitted without prior approval of HO.

Long Term Policies: Long terms policies can be issued for Two Wheelers only

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