Page 397 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

The insured can at the inception of the policy, opt to
restrict to the TPPD cover to the statutory limit of
Rs. 6000/- as provided in the M.V. Act. In such an
event, the base TP premium applicable (before any
loading/ discount) may be reduced by Rs. 200/-, Rs.
150/-, Rs. 100/- and Rs. 50/- for class 1, 2, 3, and 4
as above respectively. Endorsement IMT- 20 is to
be used.

Q 26. What is "Automobile membership Discount?"
Explain its application in motor insurance.

Ans: For valid membership of recognized Automobile
Associations such as Automobile Association of eastern
India, the Uttar Pradesh Automobile Association,
Western India Automobile Association, Automobile
Association of Southern India Automobile Association
of Upper India, a discount of @ 5% of the Own Damage
premium, subject to a maximum of Rs .200/- for a Private
Car and a maximum of Rs. 50/-for a motorized Two
Wheelers may be allowed.

It is, however, clarified that irrespective of the
number of Associations which an insured may be a
member of Associations which an insured may be a
member, discount for only one membership of such
Association is to be permitted.

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