Page 285 - Motor Insurance Ebook IC 72
P. 285

Guide for Motor Insurance

(Called Knock-for-Knock Agreement) according to
which, irrespective of who was negligent, provided the
damage is covered under the policy, the insures covering
the damages will not exercise subrogation rights against
the party involved in the accident.

Instead, they will indemnify their insured will indemnify
their insured provided the damage is covered under the
policy. In other words, each insurer will indemnify his
own insured. This agreement, however, does not apply
to goods vehicles policies and Public Service Vehicles (
i.e. Taxies, Buses) used for hire or reward, and
technically the Insurers are free to enter into litigation
to recover losses caused by such vehicles.

The agreement benefits the insurers as they avoid
intercompany litigation and thereby save costs; it
benefits the insured because they recover the claims
straightway from their insurers; it also benefits the
insuring public because the reduction in the cost claims
is eventually reflected in reduced premiums.

Q 10. How "General Damages for Disability" are
         assessed in Third Party claims?

Ans : In disability cases, the compensation is awarded to a
         living victim for personal as well as economic loss
         suffered by him. Damages for personal loss will include

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