Page 99 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

claimants can sue for tort liability which can be
substantial.

The Department of Motor Vehicle (DMV) ensures
minimum liability coverage is in place. This coverage
maybe in the form of (a) Cash deposit with the authority
(b) Surety bond from licenced surety providers (c) Self
insurance (d) Insurance through licenced insurers within
the state. Proof of such coverage being in place has to
be provided to the DMV. Failure to do so could result in
cancellation of the registration or impounding of vehicle
or fines or imprisonment.

The compensation limits would be in the following
manner:
i. injury to one person.
ii. Injury to more than one person from one occurrence
iii. Property damage. This would be written as 25/50/

25 which translated is US$ 25000/50000/25000 for
each of the above heads.

These limits apply in the state of Texas. In Alaska
it is 50.100/25 or California 15/30/5. New York
has different limits for injury and death for one or
more than one thus 25/50/50/100/10. The practice
is for owners to take additional covers to the extent
they can afford to cover tort liability.

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