Page 133 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

The driving experience may indicate accident-
proneness. Many accidents occur with new drivers
because of their limited driving experience where as
the experienced driver who is reckless take risks in
over confidence. The proposal form cannot indicate
the temperament of an individual or his driving habits.

This can be ascertained from the claims experience
and history of conviction for traffic offences. Minor
conviction for speeding or parking may be ignored but
a number of such convictions may indicate both
recklessness and indifference to the law on the part
of the proposer in such cases, comprehensive cover
may not be granted.

The risk is closely associated with the occupation of
the proposer. Person engaged in the entertainment
professions represent a hazardous class of risk as they
use their cars for long and hurried journeys.

While considering the acceptance of new proposals, it
may not be easy to ascertain all the above aspects of
moral hazards. But the owner's behaviour and attitude
during the currency of the policy and when a claim
arises may be good indication which can be borne in
mind at the time of renewal.

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