Page 389 - IC38 GENERAL INSURANCE

b) Package Policy / Comprehensive Policy: (Own damage + Third party
liability)

In addition to the above, the loss or damage to the vehicle insured by
specified perils (known as own damage to motor vehicles) is also covered
subject to the value declared (called IDV - already discussed in chapter 5)
and other terms and conditions in the policy. Some of these perils are fire,
theft, riot and strike, earthquake, flood, accident etc.

Some insurers may also pay for towing charges from the place of accident to
the workshop. A restricted cover is also available covering the risk of fire
and / or theft only, in addition to the compulsory cover granted under Act
(Liability) Only Policy.

The policy can also cover loss or damage to accessories fitted in the vehicle,
personal accident cover under private car policies for passengers, paid
driver; legal liability to employees and non-fare paying passengers in
commercial vehicles. Insurers also provide free emergency services or use of
alternative car in case of breakdown.

2. Exclusions

Some of the important exclusions under the policies are wear and tear,
breakdowns, consequential loss, and loss due to driving with invalid driving
license or under the influence of alcohol. Use of vehicle not in accordance with
`limitations as to use ' (e.g. private car being used as a taxi) is not covered.

3. Sum Insured and Premium

The sum insured of a vehicle in a Motor Policy is referred to as Insured's
Declared Value (I.D.V.).

In case of theft of vehicle or total damage beyond repairs in an accident, the
claim amount will be determined on the basis of the IDV. The IDV of the vehicle
is fixed on the basis of the manufacturer‟s / dealer‟s listed selling price of the
brand and model of the vehicle proposed for insurance at the commencement of
insurance / renewal and adjusted for depreciation as per schedule.

IDV of vehicle which is beyond 5 years of age and of obsolete models of the
vehicles (i.e. models which the manufacturers have discontinued to
manufacture) is determined on the basis of an understanding between insurers
and insured.

Rating / premium calculation depends on factors like the Insured's Declared
Value, cubic capacity, geographical zone, age of the vehicle etc.

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