Page 35 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

service vehicle, driver engaged for driving, conductor
or ticket collector in a public service vehicle, workmen
carried in a goods vehicle.

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.

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withdrawn by the Insurance Regulatory and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.

9. Briefly describe the changes taken place in
the field of motor insurance.

Ans. The practice of motor insurance, to a large extent, is
influenced, by the Motor Vehicle Act, 1939 and
thereafter by Motor Vehicles act, 1988. This Act makes
provision for various matters relating to the construction
equipment maintenance, operation, registration, use,
traffic control, etc, of motor vehicles, in addition to
provisions for insurance of motor vehicles against third
party risks.

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