Page 13 - Motor Insurance Ebook IC 72

P. 13

Guide for Motor Insurance

policy covers both accidental damage to the vehicle and
third party liability.

The Insurance Regulatory Development Authority, of
India had withdrawn the tariff on motor insurance
business with effect from 1st April 2009.

However, the premium and policy wording of both the
package and liability only policy prevalent in the market
are to be continued but insurer given freedom of pricing
and permission to provide additional add-on cover to
the existing package policy with prior approval of the
Regulator.

3. How third party insurance was made compulsory
in India? Explain briefly.

Ans. Motor Vehicle", was one of the greatest inventions of
the mankind. While it enabled the society to drive fast
in the path of progress, it had bought untold miseries in
the life of traditional road user such as passers by,
pedestrian, animal drawn carriages etc, by way of
accident resulting in personal injury, death and or damage
to property.

To add insult to injury, many such vehicular victims
deprived from realizing compensation from the tort-
feasor because the owner of the vehicle does not have

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