Page 15 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

the insurer must be carried in the vehicle to be produced
on demand by law / traffic enforcing authority. Failure
to do so shall attract penalty under section 196 M. V.
Act, 1988.

Even after de-tariff of motor insurance business in India
by the IRDA, still the premium and policy wordings,
governed by India Motor Tariff.

4. Elaborate the application of basic principles of
Insurance in Motor Insurance?

Ans. Motor insurance contracts are subject to the basic
principles applicable to property and liability insurance
in general. The practical applications of these principles
in motor insurance are examined under the relevant
topics in the course.

Utmost Good faith: 'Utmost good faith' known to the
industry as 'Uberimae fidae' is one of the basic features
that distinguish the contract of indemnity from other
commercial contract. This casts a duty on the insured
to disclose all material facts that have a bearing on the
insurance, to the insurer. Any breach thereof can render
the contract void or voidable.

Principle of utmost good faith is applicable to Motor
Insurance in the same manner and with same force as

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