Page 131 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

The third arbitrator will be presiding arbitrator and will
conduct the proceeding according to the Arbitration Act,
1996. If dispute is on liability the matter cannot be referred
to arbitration. No suit or action can be taken unless
arbitration award has been obtained.

If insurer rejects claim and the insured does not file a suit
in a court of law within 12 months of the rejection then it
will be presumed that the claim has been abandoned and
not recoverable. The condition of arbitration is printed
on all fire and miscellaneous insurance policies.

Q 17. The Driver of the Vehicle is an important
underwriting consideration in Motor Insurance.
Discuss.

Ans. This consideration is to take care of Moral or Personal
Hazard. In comparison to physical hazards like the
physical condition of the vehicle or the use to which it is
put or the area in which it is used, the driver of the
motor vehicle is more responsible for bad claims
experience.

The physical hazards are taken care of in the rating
system but the personal hazard of the driver cannot be
taken care of in the rating system. It is essentially the
driver who is responsible for good or bad claims
experience in motor insurance. By careful driving and

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