Page 230 - Motor Insurance Ebook IC 72

The Insurance Times

(v) The Claims Experience - The claims experience
for last three to five years gives a good clue regarding
the proposal. Hence the information regarding the claims
experience of the proposer is asked in the proposal form
separately for 'own damage' claims and third party
claims.

A single or a series of major claims need not be a matter
of concern but a series of minor accidents over a
period of time is definitely an unsatisfactory
experience. Such proposals should be accepted with
great care and preferably an excess should be imposed.

Q 9. "The UnderwritingApproach differs according to
the type of vehicle." Examine the statement
critically.

Ans: The underwriting approach differs according to the type
of vehicle. Vehicles are classified according to their
use into private cars, motor cycles and scooters and
commercial vehicles.

The first important point to be considered is the year of
manufacture, the purchase price and the insured's
declared value. Careful attention must be paid to the
insured's declared value in relation to the age of the
vehicle, especially because there being no pro-rata
condition of average in the policy and the sum insured

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