Page 139 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

accidental bodily injury, fatal or otherwise, and/or
damage to property of third parties, caused by negligence
in connection with the use of the vehicles, and/or defects
in the plant or premises of the Motor Trader.

In view of the above they have special insurance
requirements. Motor trade policies are taken by a Motor
Trader who may be either a dealer or distributor of brand
new vehicles or secondhand vehicles or he may be
engaged in their overhaul or repair. Normally, Trade
Certificates are used in case of brand new vehicles
which are unregistered and named driver plates are used
for driving secondhand registered vehicles.

The motor trade will handle a variety of vehicles which
will be constantly changing. These vehicles are his stock-
in-trade and therefore he has full insurable interest, either
as owner or as bailee.

The Motor Tariff provides for special policies named
Motor Trade Policies to cater to the special insurance
requirements of the Motor Trade. There are two types
of motor trade policies:

(i) Motor Trade 'B' Policy: Road Risks -This is a
comprehensive policy which covers loss or damage
to the motor vehicle, third party liability and trailers

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