Page 50 - Ebook IC S01
P. 50
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Insurance Regulatory and Development Authority has withdrawn the Tariff with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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