Page 224 - Motor Insurance Ebook IC 72

The Insurance Times

It is essentially the driver who is responsible for good or
bad claims experience in motor insurance. By careful
driving and by taking a pride in his vehicle, an insured
can substantially reduce loss possibilities.

On the other hand, neglect and carelessness are two
factors which are responsible for bad claims experience.

Therefore, the concerns of underwriting are-how to deal
with a young driver or a new driver, or what should be
done with owner who is known to be a careless driver
or the insured who pays scant attention to the mechanical
condition of the car so long as it is reasonably fit for his
purposes.

It may be mentioned that these cases could be regarded
as a moral hazard in the wider sense of carelessness
and can be dealt with by the underwriter. The hazard
arising from the drive can be assessed from the point of
view of his age, physical condition, driving experience
and occupation.

Age has a material bearing on the risk. The young driver
presents an unfavorable hazard because speed has a
special attraction for youth. Similarly, an elderly driver
involves an increased physical hazard. Because of
advancing age his faculties are less keen resulting in

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 224

Copyright@ The Insurance Times. 09883398055 / 09883380339