Page 111 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Driver Clause: This state the person or class of
persons entitled to drive the vehicle. Some example:
Stage Carriage/Contract Carriage/Any persons
including insured: Provided that a person driving holds
an effective driving licence at the time of the accident
and is not disqualified from holding or obtaining such a
licence.

Provided also that the person holding an effective
learner's Licence may also drive the vehicle when not
used for the transport of passengers at the time of the
accident and that such person satisfies the requirements
of Rule 3 of the Central Motor Vehicle Rules 1989.

The schedule incorporates the proposal and declaration.
Thereafter the signature of the authorized insurer
appears.

Q 6.. Explain the following clauses under Motor Policy
Ans. A: a) Application of Limits of Indemnity b)
Avoidance of certain terms and Right of Recovery
a) Application of Limits of Indemnity - In the event

of any accident involving indemnity to more than
one Person, any limitation of the amount of any
indemnity shall apply to the aggregate amount of
indemnity to all persons indemnified and such
indemnity shall apply in priority to the Insured. Motor

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