Page 138 - Motor Insurance Ebook IC 72

The Insurance Times

will not be considered as accessories, but 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.

Fittings which are standard and provided as inclusive
with the vehicle by the manufacturer need not be
separately described and are deemed to be included in
the value proposed for insurance.

Example A: DX or LX model vehicle has build-in extra
fittings like Air conditioner, music system or power
steering/windows. These are part of the Manufacturers
selling price and included in IDV. In this case the
standard premium rate is charged and not extra-fitting
premium rate. As regards "explosion", both external and
internal explosions are deemed to be covered.

Q 2. What are the special insurance requirements of
Motor Traders? What are the policies available
to satisfy them?

Ans. Motor Traders like dealers of vehicles or those engaged
in overhaul or repair of motor vehicles have to
demonstrate the vehicles to prospective clients by giving
a trial run. These activities involve risk.

Motor Traders are also exposed to legal liability for

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