Page 227 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

The education level of the driver is a new factor
incorporated by insurers as a potential risk factor.
Proposal forms are not eliciting such information. The
technological advances in vehicle manufacturer have
resulted in installation of computerized systems for
operation of vehicles. Drivers are required to have
knowledge about the operating systems especially of
commercial vehicles.

Q8. Discuss the primary factors in underwriting motor
Ans. business.
On the one hand where Motor business forms major
part of insurers insurance business, on the other
hand it is unprofitable also. In view of this it is necessary
to adopt a sound underwriting policy in motor business.
The primary factors in underwriting motor business may
be grouped under the following headings:
(i) The vehicle
(ii) The use of the vehicle
(iii) The geographical area of operation
(iv) The Proposer of the vehicle and
(v) The claims experience.

(i) The Vehicle - The underwriting approach depends
on the type of vehicle. In this regard following are the
considerations:
a) The year of manufacture -The age of the vehicle

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