Page 184 - Motor Insurance Ebook IC 72

The Insurance Times

Q. 11. What are the major amendments subsequent to
discontinuance of tariff in Motor Insurance?

Ans. The motor tariff was withdrawn with effect from 1st
Jan. 2007. Insurers are permitted to devise their own
premium structure for Own damage coverage. The
third party liability premiums continue to be under tariff
and the rates are as advised by IRDA.

Policy wordings as per the erstwhile tariff are to be
continued, however additional covers as add-ons to
the main policy are permitted to be devised by the
insurers and filed with IRDA before introduction into
the market-this is known as the File & Use system-it
is also required for any deviations from the erstwhile
tariff rates for the standard products.

Based on this leeway to insurers the following EXTRA
Cover or ADD-Ons are now being offered by insurers.
These benefits are only available for owners of Private
cars.

In most of these add-on covers, the onus of proving the
exclusion do not apply on the insured, unlike the practice
for the standard cover wherein the onus of proving
exclusion is on insurer. These are:

1. Depreciation reimbursement: The depreciation

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