Page 31 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

provisions of Motor Vehicles Act, 1988. In addition
to the same, the policy further covers personal
accident to owner/driver and higher third party
property damage to an extent of Rs. 1 lakh in case
of motorized two wheeler and Rs. 7.5 lakhs in case
of other vehicles.

These are inbuilt additional coverage, however, the
option lies with the insured, who can opt to limit the
same to the statutory limit. In such case IMT 20 to
be used. Additional coverage such as wider legal
liability to workman can be obtained subject to
payment of additional payment.

Although, the tariff relating to motor insurance has
withdrawn by the Insurance Regulatory and
Development Authority with effect from 1st April
2009, still the premium as well as the policy wordings
of "Liability Only Policy" continued as it is, under
erstwhile Indian Motor Tariff, 2002.

b. Package Policy: Package policy is nothing but a
package of covers consists of 'damage to the
vehicle besides statutory "act liability." Therefore
the policy covers both damage to vehicle as well as
statutory act liability

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