Page 108 - Motor Insurance Ebook IC 72

The Insurance Times

2. Use whilst drawing a trailer except the towing
(Other than for reward) of any one disabled
mechanically propelled vehicle.

Q 4. What "Additional Covers" can be provided in a
Ans: "Liability Only" policy of a vehicle?
The Liability only policy can be extended to cover
additional risks. These may be optional or essential.
Inclusion of each of these covers involves incorporating
an endorsement to the policy.
1. Passenger Liability in Public passenger service

Vehicles: This is essential cover for all passenger
vehicles i.e. taxis, buses, rickshaws and must be
covered. Additional premium is charged for this cover.

2. Bi-fuel vehicles: Vehicles fitted with bi-fuel
arrangement i.e. an addition to petrol or Diesel they
have attachments for CNG or LPG as fuel for
running the vehicle, are subject to greater hazard in
the event of accident. Such vehicles required an
endorsement in the Registration Certificate by the
RTA. In such cases an additional premium is to be
charged for Third party liability.

3. Liability for persons employed in connection
with the operation of the vehicle: The MV Act
provides for liability to employees connected with

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 108

Copyright@ The Insurance Times. 09883398055 / 09883380339