Page 356 - Motor Insurance Ebook IC 72

The Insurance Times

Q 7. Discuss the Tariff Provisions regarding: a) Policy
Ans. on vehicles subject to hire purchase agreements
b) Minimum Premium c) Addition of benefits
during currency of policy d) Inclusion of riot, strike,
earthquake, flood perils during the currency of
the policy.
a) Policy on vehicles subject to hire purchase

agreements - It is not allowed to insure vehicle in
a name other than that in which the vehicle is
registered. In case vehicles subject to hire purchase
agreements it is not permissible to issue policies in
the joint names of the Hirer and Owner. Policies
must be issued in the name of the Hirer and the
Owner's interest is protected by an
endorsement incorporated in the policy.

This endorsement recognizes the interest of the
owners in the motor vehicle insured and provides
that payment in respect of loss or damage to the
motor vehicle (which loss or damage is not made
good by repair or replacement) shall be made to
Owners as long as they are the Owners of the
motor vehicle.

The Owner's receipt will be a full and final
discharge to the insurers in respect of such loss or
damage.

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