Page 161 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Q 2. After detariffing some of the erstwhile tariff
Ans: guidelines continue in motor insurance. Discuss.
Some of the erstwhile tariff guidelines that continue to
be followed are as follow:
1. Extension of Geographical Area: Motor

insurance is provided for use of the vehicle in India.
Temporarily usage in neighboring countries i.e.
SAARC countries, Bangladesh, Bhutan, Mauritius,
Nepal, Sri Lanka, Pakistan can be covered by
payment of extra premium.

The policy to be endorsed suitably. The cover under
this extension will however not pay for damage or
liability when the vehicle is being transported to these
countries. Third party liability will be as per the law
of the respective countries.

2. Types of Policies: There are two types of policies.
(A) Liability only: this covers liability to third parties
arising out of the use of the vehicle in a public place.
It is required in terms of Motor Vehicle Act. (B)
Package Policy: The policy covers damage to the
vehicle by specified perils-Own Damage and third
party liability as covered in the Liability only policy
with additional covers.

3. Minimum Premium & Minimum Values: A

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