Page 219 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

business proposals it may not be easy to ascertain all
aspects of moral hazard. But his behavior and attitudes
during the currency of the policy and, when a claim
arises, will be indicative of bad moral hazard. And this
aspect will have to be borne in mind at the time of
renewal.

For example, the insured may not co-operate with the
insurer in respect of a third party claim. He may not appear
in the Tribunal or may not insist on his driver to do so. In
the event of 'own damage' he may insist on replacements
and repairs not strictly connected with the accident and
may be unwilling to contribute towards the cost of such
replacement and repairs.

He may be careless in reporting accidents hoping that
no claim will materialize from the third party. With such
insured's renewal will have to be invited subject to
underwriting safeguards, e.g. restriction of cover,
imposition of compulsory excess.etc.

Settlement of claims: In the case of commercial
vehicles, it is the practice of insurers to arrange for a
survey of the vehicle at the spot of the accident. This
establishes that the accident is genuine and also prevents
any aggravation of damages and enhanced claim
settlements as a consequence. The surveyor usually

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