Page 233 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Example a Bentley car has a part to be replaced and
the manufacturers catalogue lists the price of that part
for India as Euro 7900/- Thus the price allowed will be
the equivalent rupee value for Euro 7900 + Sea freight
+ custom duty paid for importing the item. The labour
cost for fitting will also be allowed.

Imported cars over 10 years and less than 15 years old
are accepted on comprehensive terms with a higher
excess. Such cars over 15 years old are accepted for
Third Party risks only.

Cars imported by foreign embassies pose a special
problem in as much as the embassies are exempted
from paying customs duty on the imported cars, and , as
such insured for less than their market price. To
counteract the adverse effect on the Insurers of under-
insurance, the Insurers load the O.D. premium on such
cars by at least 15%

Sports cars are considered to be heavier risks than other
cars of the normal type. The repair costs are likely to
be higher. These cars which are specially designed for
high speed are usually driven by young drivers from
affluent families. The loss severity will be high because
of the high speed.

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