Page 217 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Private carriers are a better risk than public carriers.
The use of the former is limited to carriage of own goods
whereas public carriers like the taxies, are subject to
optimum utilization including driving during night, thus
exposed to greater incidence of accidents and wear and
tear. Private carriers are also better maintained.

Even in same class of vehicles, one risk may differ from
another. A goods carrying vehicle used for delivery of
aerated water bottles from door to door in a city will not
be such a heavy risks as a lorry engaged in inter-state
transportation of goods.

The general nature of the goods carried is important for
underwriting purposes, especially if they are flammable
or likely to explode. The fire hazard is common with,
for example, vehicles used for bulk conveyance of
petroleum (tanker vehicles).

The area of operation
The area in which the vehicle is used has a direct bearing
upon the risk under all sections of cover of the
comprehensive policy. This aspect of physical hazard
is also taken care of in the rating system. Rates differ
according to the zones in which vehicle is used, e.g.
metropolitan areas, state capitals, major cities, Urban
and rural areas. This differential rating takes into

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