Page 50 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

What are the forms of Motor policies available in India?

Ans. The India Motor Tariffs, as amended in July 2002 provided for two types of

Policy forms. These were:

a. Liability Only: This form covers "Act: Liability and PA to owner/driver. The

Insurance Regulatory and Development Authority has withdrawn the Tariff with

effect from 1st April 2009. However, the wordings of "Liability Only Policy" will

continue and the rates for "Liability Only" policy are regulated by the IRDA.

b. Package Policy: This form covers 'Own Damage" losses and "Act Liability." It can

also be extended to cover additional liabilities as provided in the Tariff, for example,

liability to employees of the insured who may be travelling in or driving the

employer's cars, increased Third Party Property Damage Liability, etc.

Formerly these were known as Act only and Comprehensive Policy respectively.

Insurers could, restrict the cover under the Own Damage section of package Policy

without reduction in premium or increase the premium for the same Policy. "Liability

only" cover could not be reduced in any way.

With regards to "Own Damage" cover the existing policy wording are to be continued

but insures are given freedom of pricing and permitted to provide additional covers

after obtaining the Regulators clearance to the changes. The two policy forms i.e. i)

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