Page 231 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

is the limit of liability per accident and not for the period
of insurance.

The majority of motor claims are for partial damage
and the absence of pro-rata average adversely affects
the insurers.

The age of the vehicle is important from the underwriting
point of view. It is natural that, as a vehicle becomes
older, defects appear more frequently and metal fatigue
sets in. The underwriting guidelines adopted differ from
insurer to insurer, but there is broad agreement in the
approach adopted.

Private cars which are over 15 years old are not
accepted on comprehensive terms but for third party
risks only. Fire and theft risks may however be covered.
Cars which are over 10 years and less than 15 years
old are accepted for comprehensive risks subject to
satisfactory inspection report by the insurer's automobile
engineers or other officials of independent surveyors.

The inspection report would cover the condition of the
engine, body work, the efficiency of brakes, tyres,
steering and general maintenance of the vehicle.

The colour of the vehicle is also considered for rating

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