Page 175 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Q. 7. What is Geographical Area? How it can be
Ans. extended?
For Motor insurance purposes the Geographical Area
refers to state of India. Motor insurance is provided
for use of the vehicle in India. Both policies i.e. Liability
Only and Package policy cover the risk of vehicle and
loss/injury/damage to third party in India only.

For the purpose of rating the whole of India has been
divided into A,& B Zones for Private cars/Motorized
two wheelers/Commercial vehicles rated as taxis (not
exceeding 6 passengers) and in Zone A, B, & C for
Commercial vehicles other than vehicles covered under
private car category. There are broad outlines of zoning
followed by most insurers.

Some have further sub-zones based on their individual
claim experience e.g. in the case of commercial vehicles
and two wheelers in major cities are classed for the
higher zones than above or sub classed with higher rate
than the class they fall under.

Temporary 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 is required
to be endorsed suitably.

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