Page 126 - Motor Insurance Ebook IC 72

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the motor cars are not accessories. They will be
considered as extra fittings and will not be covered
unless they are separately described and valued in the
Schedule of the Policy.

b) Consequential Loss - The policy covers only
direct loss caused by an accident to the car and
not the consequential loss. The insured may suffer
loss of use of the car during repairs in the form
of cost and expenses of alternate transportation.
This is a consequential loss which is not covered.

c) Mechanical Breakdown - The policy does not
cover mechanical or electrical breakdown, failures,
and breakages. The reason being they are associated
with wear and tear. However, subsequent damage
following mechanical breakdown is covered.

If the steering rod breaks and causes an accident
resulting in damage to the car, claim in respect of
breakage in steering is not payable, but subsequent
damage to the car is accidental damage and claim in
respect of that will be admissible.

Q 13. Describe the cover granted by Section II-Liability
to Third Parties of Private Car Policy B.

Ans. Cover granted by Section II-Liability to Third Parties

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