Page 12 - Motor Insurance Ebook IC 72

The Insurance Times

The bill proposed to increase compensation for death
and grievous injury resulting from a hit and run accident
from the existing Rs. 25,000/- and Rs. 12,5000/- to Rs.
1 lakh and Rs. 50,000/- respectively.

Further proposed to delete the chapter on no-fault liability
and get the same merged with main chapter.

Of late it is also in the news that Ministry of finance
had appointed a committee to submit a report on the
viability of putting a cap on the amount of compensation
payable under motor third party insurance.

However, all the above proposals are in the pipeline and
yet to be decided by the Parliament.

Motor Insurance business : Motor Insurance
business in India follows that of the UK market and
tariff driven. Standard policy wording as well as premium
for accidental damage to the vehicle as well as third
party liability insurance was decided and regulated by
"Tariff Advisory Committee, a statutory body.

The Indian Motor Tariff as amended in July 2002
provided for two types of policy forms, known as
Liability Only and Package Policy. While liability only
policy covers the statutory liability of the insurer, package

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