Page 166 - Motor Insurance Ebook IC 72

The Insurance Times

Q 3. Discuss the following tariff provisions: 1)
GeographicalArea 2) Prohibition ofAgreed Value
Policies 3) Short Period Scale of Premium

Ans. 1) Geographical Area - Under Motor Policies
Geographical Area is India which may be extended
SAARC countries (Seven) on charging additional
premium. This additional premium is Rs. 500/- for
Package Policy and Rs. 100/- of Liability Only
policy. Usage in neighboring countries i.e.,
Bangladesh, Bhutan, Mauritius, Nepal, Sri Lanka,
Pakistan can be covered by payment of extra
premium. The policy is required to be endorsed
suitably.

2) Prohibition of Agreed Value Policies - An "Agreed
Value Policy" is a policy which undertakes in the
event of a total loss to pay a specified sum as the
value of the vehicle insured and which does not take
into account the current market value of such
vehicle.

For Motor Vehicles it is not permissible to issue such
policies except for vintage cars. A vintage car is
any car which was manufactured on or before 31st
December, 1940 and is certified to be in working
condition by an automobile engineer or surveyor.

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