Page 34 - Motor Insurance Ebook IC 72

The Insurance Times

The vehicles are insured at a fixed value called the
Insured's Declared Value (IDV). IDV is calculated on
the basis of the manufacturer's listed selling price of
the vehicle (plus the listed price of any accessories)
after deducting the depreciation for every year as per
the schedule provided by the Indian Motor Tariff.

If the price of any electrical and / or electronic item
installed in the vehicle is not included in the
manufacturer's listed selling price, then the actual value
(after depreciation) of this item can be added to the
sum insured over and above the IDV. In case the vehicle
is fitted with CNG / LPG, the CNG/LPG kit fitted to the
vehicle is to be insured separately at an additional
premium.

8. Scope of cover in liability only policy.
Ans : Liability Only Policy: Section 146 of the M. V. Act, 1988
provides for compulsory insurance of all motor vehicle
used in public places, except those who are specifically
exempted or relaxed by way of notification. Hence,
liability only policy is compulsory in India.

This policy covers the statutory liability of the insured
owner required to be covered as per the provisions of
Motor Vehicles Act, 1988 towards third parties, owner
of goods carried in the vehicle, passengers carried public

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