Page 47 - Ebook IC S01
P. 47
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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