Page 47 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

So, if the policyholder suffers total loss in an accident of his 3-year-old car that is

worth Rs 4 lakhs at the time of the accident, under no circumstances will he be

compensated for more than 4 lakhs.

Define Motor Vehicle. Classify Motor Vehicles for the purpose of

Motor Insurance.

Ans. A "Motor Vehicle" has been defined in the Motor Vehicle Act, as a mechanically

propelled vehicle adapted for use upon roads whether power of propulsion is

transmitted thereto from an external or internal source and includes a chassis to

which a body has not been attached and a trailer, but does not include a vehicle

running upon fixed rails.

For purposes of insurance, motor vehicles are classified into 3 broad categories, viz

Private Cars, Motorcycles and Commercial vehicles. There are also sub-classifications

in some of the categories. The erstwhile tariff defined and describes these vehicles

and this categorization is still being followed in the market, as follows:

1. Private Cars: These are vehicles used solely for social, domestic and pleasure

purposes and business or professional purposes but not for carriage of goods other

than samples. Three wheeled cars for private purpose are also covered. Use of such

vehicles excludes; Hire or reward, Racing, Peacemaking reliability trial, Speed Testing

and For any purpose in connection with the Motor Trade.

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