Page 351 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Majority of Exclusion under IMT 26 can be deleted by
paying an additional premium attaching endorsement,
IMT 74 which cover losses (excluding theft under any
circumstances) of items like tyres, mudguards, headlights
and painting of damage portion under commercial
Vehicle 'B' Policy.

Q. 5 "The non-life industry runs the risk of insolvency
Ans: if motor insurance premiums are increased."
Explain your views .
The non-life insurance industry stands to lose almost
three times the profit it made last year by way of
additional provisions for motor third party insurance
claims. The government has said that the non-life
industry runs the risk of insolvency if motor insurance
premiums are increased.

The insurance companies would incur a loss of
approximately Rs 2,500-3,500 crore in the current year
(2010-11) on account of this (motor insurance) business
of which a substantial portion will be borne by the public
sector insurance companies. Last year, profits made by
the non-life industry had managed to touch Rs 1204.51
crore after growing three-fold over the previous year.

The state in which the car-owner resides also has a

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