Page 383 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Another problem is in regard to the acceptance of
the insured's estimated value declared by the
proposer. Since there is no pro rata condition of
average in motor policy, careful attention has to be
paid to the insured's estimated value in relation to
age of the vehicle. This is also essential to avoid
dispute in the event of Total Loss.

(b) Imported cars - Motor insurance underwriting of
the imported cars poses several problems to
insurers. Imported cars present problems to
insurers both at the time of acceptance of
business and also at the time of loss. There is the
problem of obtaining spare parts. The cost of
repairs of an imported car is also high because of
the cost of the materials and intricate design which
requires more time spent on dismantling or
assembling. Valuation of imported cars at the time
of insurance would also pose a problem.

The policy covering such cars is invariably subject
to the Endorsement to the effect that in the event
of loss or damage necessitating the supply of a part
not obtainable from stocks held in the country in
which the Motor Vehicle is held for repair, the
Company shall pay in cash the amount of the loss
or damage in respect of any such part plus the

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