Page 32 - Motor Insurance Ebook IC 72

The Insurance Times

Additional coverage against other damage / loss to the
vehicle can be extended subject to payment of additional
premium as provided in the Tariff, by way of necessary
endorsements to that effect. For example, coverage of
accessories of the vehicle.

Though, there is no basic difference between the
premium and coverage between 'liability only policy' and
the 'liability' segment of package policy, but the scope
of liability segment of the package policy extend to cover
the occupants carried in a private car and pillion riders
carried in two wheeler.

Formerly these are known as Act only and
Comprehensive Policy respectively. Because of the
statutory compulsion the insurer can not reduce the
scope of coverage in liability only policies while the under
the Own Damage section of package Policy the same
is permissible, where insurers could, restrict the cover
without reduction in premium or increase the premium
for the same Policy.

As on date, despite de-tariffing of motor insurance since
1st April 2009, for the purpose of "own damage" cover,
the existing policy wording are to be continued but
insures are given freedom of pricing and permitted to
provide additional covers after obtaining the IRDA

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