Page 367 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

1) The premium rating structure encourages loss
prevention on the part of the motoring public as
substantial discounts in the premium are offered if
the insured establishes an accident free record.
Again, premium discounts are offered if the insured
is willing to bear a certain portion of the loss himself.
These incentives not only result in reduced cost of
insurance but also encourage careful driving.

2) Underwriting system followed by insurers involves
careful 'risks selection' and 'risk improvement'. This
makes indirect contribution to road accidents
prevention.

3) The Loss Prevention Association of India established
by the General Insurance Industry is actively
engaged, amongst its other activities, in promoting
prevention of road accidents. The Association's
involvement in road-safety programmes has the
objective to reduce and contain the rapidly
accelerating rate.

The intensive programmes of the Association are
aimed at creating awareness of road safety
measures and traffic with special emphasis on
defensive driving techniques and specially designed
programmes for child-safety on the roads.

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