Page 257 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

insured in which case the latter is reimbursed on
submission of a receipted bill from the repairers.
In either case, discharge voucher or receipt is
obtained. The claims Register and the policy and
renewal records are marked that the claim is paid
indicating the amount of claim and the amount of
salvage, if any.

The exclusion under Sec..I of the operative clause of
the comprehensive policy leads to several disagreements
between the insured and insurers. Claims coming within
the purview of exclusions are repudiated.

Q 8. Write a short note on Knock-for-knock
Ans. agreement.
Knock-for-knock agreement - Insurers have entered
into an agreement called the 'knock for knock'
agreement. According to this agreement when two
vehicles insured (under B Policy) with two different
insurers are involved in an accident, each insurer will
indemnify his own insured. In other words the Own
Damage Claim shall be settled under the respective
policy.

The insurers covering own damage will not
exercise subrogation rights against the other party
involved. This is in order to avoid litigation to decide

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