Page 27 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

5. Classification of motor vehicles for the purpose
of motor insurance.

Ans. For the purposes of insurance, motor vehicles are
classified into 3 broad categories, viz, Private Car,
Motorized Two-Wheeler and Commercial vehicles.
There are also sub-classifications in some of the
categories. Definition, description and categorization
of vehicles made by the erstwhile Indian Motor Tariff
Tariff, 2002 still being followed in the market.

1. Private Car: Vehicles used for social, domestic and
pleasure purposes. Also for professional purposes
but not for carriage of goods other than samples.
Three-wheeled rickshaw for private purpose is also
covered in this category. However, the policy
exclude use of such vehicles for; hire or reward,
racing, peacemaking reliability trial, speed testing
and for any purpose in connection with the Motor
Trade.

2. Motorized Two-Wheeler - Motorcycles/Scooter:
Mechanically propelled two wheelers with or
without sidecar, used for social, domestic and
pleasure purposes and for professional purposes but
not for carriage of goods other than samples.
However, the policy exclude use of such vehicles
for; hire or reward, racing, peacemaking reliability

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