Page 167 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

3) Short Period Scale of Premium - Tariff provides
following Short Period Scale of Premium for
Policies issued or renewed for periods shorter than
12 months:
Period (Not Exceeding) Rate
1 Week ... ….10% of the Annual Rate
1 Month ...... 25% of the Annual Rate
2 Months ... 35% of the Annual Rate
3 Months ... 50% of the Annual Rate
4 Months ... 60% of the Annual Rate
6 Months ... 75% of the Annual Rate
8 Months ... 85% of the Annual Rate
Exceeding 8 Months ..Full Annual Premium.

The above scale must also be applied in calculating the
premium when policies are cancelled during the
currency at the request of the insured.

Q 4. Discuss the following tariff provisions:
Ans. 1) Transfer of a Vehicle 2) Cancellation of
Insurance 3) Double insurance
1) Transfer of a Vehicle - On transfer of a vehicle,

the benefits under the policy in force on the date of
the transfer shall automatically accrue to the new
owner with effect from the date of the transfer.
This is in accordance with the requirement of the
Motor Vehicle Act which requires that Third Party

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