Page 102 - Motor Insurance Ebook IC 72

The Insurance Times

Q1. What is the difference between Motor Policy A
and Policy B?

Ans. India Motor Tariff provides for following two types
of policies:
Motor insurance business in India was governed by
Tariff since the 1970's with amendments over the years,
the last being in July 2002. Tariffs were discontinued
from 1st January 2007, however the policy wordings
are required to be continued until such time that IRDA
permits the change in policy wordings.

The rates, terms and conditions are regulated by the
Authority. The existing policies are now termed as
standard policies with insurers free to provide add-on
covers as approved by IRDA under the "File and Use
guidelines."

"Liability Only" is called Standard Form for "Liability
Only" policies. This form applies uniformly to all classes
of vehicles, whether Private Cars, Commercial Vehicles,
Motor Cycles or Motor Scooters, with suitable
amendments in "Limitations as to Use" and some policy
conditions.

"Package Policy" provide wider cover 'own damage'
and Act Liability, with suitable modifications based on
the class of vehicle covered. Package Policies for

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 102

Copyright@ The Insurance Times. 09883398055 / 09883380339