Page 237 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

adjustments keeping in mind individual companies risk
acceptance philosophy and overall claims experience.

Q. 11. Write short notes on: 1. Imported cars over 10
years 2. Sport cars

Ans: Imported Cars over 10 years: Sport 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%. Insurance on imported cars presents several
problems.

There is a problem of obtaining spar parts. The cost of
repair of an imported car are also high, not only because
of the cost of material but because of the intricate design
which would mean more time spent on dismantling or
reassembling.

Sports Cars: Sports cars are considered to be heavier
risks than other cars of the normal type. The repair

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