Page 280 - Motor Insurance Ebook IC 72

The Insurance Times

Motor Vehicles Act, the liability for Third party property
Damage is restricted to Rs. 6,000/-. However, an
increased liability cover is issued in respect of all the
vehicles.

The maximum liability covered for property damages is
Rs. 7,50,000 in case of commercial vehicles.
Assessment of damages for property damage is easier
and more straight forward than for personal injury cases.
The measure of damages is the cost of repair or the
cost of replacement of the property so that it is restored
to its original condition.

If the property is totally destroyed, the measures of
damages would be the value of the property on the date
of the accident together with the reasonable
consequential loss. If the property is damaged, the
measure of damage would be
a. The cost of repairs
b. Depreciation in its value
c. Cost of hiring alternative property or alternatively,

loss of use or loss of profits during the 'period of
repair.'

If you, receive any notice of claim from the third party,
MACT, or a Court of Law, send the same to the insurers
forthwith unanswered Send all notices and summons

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 280

Copyright@ The Insurance Times. 09883398055 / 09883380339