Page 223 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

insurance, the personal hazard of the driver is just as
important, the no claim discount goes a little, if not a
long way, in recognizing this factor. There have been
innumerable instances of insured bearing the cost of a
small accident in preference of forfeiting this discount
either because he was desirous of maintaining a good
record. Thus the discount acts as an effective incentive
to the insured to exercise care.
b. Indirectly, the discount helps towards contribution

to the object of road safety.

c. The dispute was between the insured and the
insurers are not common as is thought of. At any
rate, the tariffs permit discretion to the insurers to
allow no claim discount when they are satisfied that
the claim is being solely by virtue of the knock-for-
knock agreement and that the insured was free of
blame for the accident.

Q 7. In Motor insurance how the risk is affected by
the driver of the vehicle? Give your comments.

Ans: Apart from the physical aspect of the vehicle and its usage,
the personal element is a dominating feature in relation to
motor insurance which has an important bearing upon
the loss ratio. The physical aspect is taken care of in the
rating system but just as important is the personal hazard
of the driver which is not dealt with in the rating system.

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