Page 284 - Motor Insurance Ebook IC 72

The Insurance Times

8. Ante dated cover notes or premium receipt of back
dated cheques

9. Insurance arranged after loss with connivance of
insurers employees.

10. False FIR's fraudulent medical documents/
employment records/Vehicle documents.

Q. 9. What is Knock-for Knock agreement?
Ans: If two vehicles are involved in collision and one of the
vehicles is negligent, the owner of the other vehicle can
recover damages from the negligent owner of the
vehicle. If he chooses to claim from his own insurer
under 'own damage' section of the policy, then his insurer
would be subrogated his rights of recovery against the
negligent owner. The latter would be having his
insurance policy and his insurers may have to pay the
claim under Third Party Section of the policy.

This would mean that, in all cases, where insurance is
involved, such claims are settled as between the
respective insurers. Since question of negligence are
involved. These would have to be settled by litigation
between insurers which is an expensive and time
consuming process. Eventually the costs of litigation
would be reflected in the premium rates.

Therefore, insures have entered into an agreement

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