Scribd Logo
Upload

Welcome to Scribd!

  • 86 views

    Motor Insurance 1

    Uploaded by

    Anukriti agrawal
    Motor vehicle insurance originated in the UK in the late 19th century and later spread to India via legislation. It is now mandatory under Indian law. There are several types of motor insurance policies that cover different risks like liability, theft, or comprehensive coverage. Key factors that influence premiums include the vehicle class, age, and the driver's experience. The insurance approval and claims settlement processes involve filling forms, assessments, authorizing repairs, and ensuring customer satisfaction.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Motor Insurance 1

    Uploaded by

    Anukriti agrawal
    86 views28 pages
    Motor vehicle insurance originated in the UK in the late 19th century and later spread to India via legislation. It is now mandatory under Indian law. There are several types of motor insurance policies that cover different risks like liability, theft, or comprehensive coverage. Key factors that influence premiums include the vehicle class, age, and the driver's experience. The insurance approval and claims settlement processes involve filling forms, assessments, authorizing repairs, and ensuring customer satisfaction.

    Original Description:

    motor insurance comprises act only policies, third party policies and comprehensive poliies

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Motor vehicle insurance originated in the UK in the late 19th century and later spread to India via legislation. It is now mandatory under Indian law. There are several types of motor insurance policies that cover different risks like liability, theft, or comprehensive coverage. Key factors that influence premiums include the vehicle class, age, and the driver's experience. The insurance approval and claims settlement processes involve filling forms, assessments, authorizing repairs, and ensuring customer satisfaction.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    86 views28 pages

    Motor Insurance 1

    Uploaded by

    Anukriti agrawal
    Motor vehicle insurance originated in the UK in the late 19th century and later spread to India via legislation. It is now mandatory under Indian law. There are several types of motor insurance policies that cover different risks like liability, theft, or comprehensive coverage. Key factors that influence premiums include the vehicle class, age, and the driver's experience. The insurance approval and claims settlement processes involve filling forms, assessments, authorizing repairs, and ensuring customer satisfaction.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 28

    MOTOR INSURANCE

     Presented by -
     AKANKSHA MISHRA (09)
     AKRITI SINGH (10)
     AYUSHI GUPTA (38)
     ANUKRITI AGRAWAL (20)
    HISTORY OF MOTOR INSURANCE:
    Motor insurance belongs to miscellaneous class of
    insurance. But the business is so big that insurance
    companies have to maintain a separate department.
    Motor insurance was first started in U.K, the first
    car appeared in 1894 and the first policy was issued
    in 1985.
    In 1903 the Car and General Insurance Corporation
    limited was started. After the first world war no. of
    cars and car accidents increased. The victims could
    not get compensation so the third party insurance
    made compulsory by the Road Traffic Acts1930.
    In India motor vehicles
    Act was passed in 1939.
    The Act was the same
    as that of U.K. claims of
    damage which may
    arise out of ownership,
    maintenance, or use of
    car.
    • First Motor Vehicle Act was
    passed to make third party
    insurance compulsory(Motor
    1939 Vehicle Act 1939)

    • Motor Vehicle Act of 1988


    replaced the 1939 act and came
    1988 into force from 1.7.1989.
    Motor insurance (also known as
    vehicle/car/auto insurance)is insurance
    purchased for cars , trucks , and other road
    vehicles . Its primary objective is to provide
    protection against physical damage resulting
    from traffic collisions and against liability
    that could also arise there-from.
    Laws in India make it mandatory for vehicles to be
    insured before they are driven . The new Road
    Transport and Safety Bill,2014 proposed to raise the
    fine for driving a non-insured car from Rs 10000 to
    Rs 75000.However, it is not for the fear of the law
    that you must get your vehicle insured.

    Getting an insurance policy for your car protects


    your life , money and any third party. A car is an
    expensive investment that always lasts at least a
    couple of years. It goes without saying that
    thorough research is needed to buy the right policy
    for your car.
    Benefits of motor insurance:
    1. It pay for damages
    2. It reduce your liability
    3. It pay for your hospitalization
    4. It cost less when purchased online.
    5. It compensate your family after your demise
    PERILS COVERED:
    1. By fire explosion , self ignition or lightning
    2. By burglary , housebreaking or theft
    3. By riot and strike
    4. By earthquake
    5. By flood , typhoon , hurricane storm and
    cyclone
    6. By malicious act
    7. By terrorist activity
    8. By landslide/rockslide
    9. Whilst in transit by road , rail , inland
    waterway , elevator or air
    What Motor Insurance excludes:
    1. Not having a valid Driving License.
    2. Under influence of intoxicating liquor/drugs.
    3. Accident taking place beyond geographical limits
    4. While vehicle is used for unlawful purposes.
    5. Electrical/Mechanical breakdowns.
    Principles of Motor Insurance:
    1. Utmost Good Faith
    2. Insurable Interest
    3. Principle of Indemnity
    4. Principle of Contribution
    5. Principle of Subrogation
    6. Principle of ‘CAUSA PROXIMA’
    PROCEDURE OF MOTOR INSURANCE:
    The procedure for motor insurance is that a
    proposal form has to be filled up by the insured to
    insure his motor vehicle. After the receipt of
    proposal form , the insurance company will
    determine the rate of premium. The insurance
    company will charge rate/ premium according to
    the schedule for a particular vehicle under a
    particular policy.
    The proposal form is completed for making
    proposal for motor insurance. The proposal form is
    divided into three parts:
    A. Identification of vehicles registration
    number, horse power, shape and size,
    model etc.
    B. Risk information, past insurance , type of
    policy etc.
    C. Declaration : The declaration that all
    information given is true and full
    statement of the questions have been given. This is
    necessary under the principle of utmost good
    faith.
    As soon as proposal form is accepted, cover notice
    issued. It is a certificate of insurance. As soon as
    the policy is issued the cover note is cancelled.
    The term for motor insurance is one year
    except for any allowance given to the insured
    for the renewal of the policy. The motor
    insurance policy can be taken for a shorter
    period than a year but the rate of premium
    will be higher on such policies. The amount
    of premium can be adjusted according to the
    value of new and old car.
    Conditions of motor vehicle policy:
    1. Notice of accident
    2. Supply of information
    3. Keeping the vehicle in good condition
    4. Double insurance
    5. Utmost good faith
    6. Arbitration clause
    7. Renewal of policy
    8. Policy information
    9. Cancellation of policy.
    Kinds of motor policies:
    1.Act only policies/Third party cover

    2.Third party,fire and theft policy

    3.Comprehensive policy
    1.Act Only Policies/third party cover:
    This policy is designed to meet the requirements of Motor
    Vehicles Act ,1988,which provides for compulsory
    insurance in regard to liabilities arising out of use of
    motor vehicles in a public place . This kind of policy is
    limited to bodily injury or death of the third parties . The
    amount of coverage is mentioned in this act. In India both
    the risks of bodily injury to third party and to employees
    can be covered under one policy.

    Total compensation not to exceed 1,00,000 in case of two


    wheelers and 2,00,000 in case of other vehicles.
    2.Third Party,fire and theft policy:
    This policy includes cover for all risks mentioned in
    motor vehicle act and some more things. It expands
    or broadens the coverage by increasing the value of
    property to be covered . That means if one takes
    the policy he will get compensation from insurer
    upto the value of insurance which may be higher
    than the minimum amount prescribed under act
    .The insurer pays for all sums of liability, the
    expenses for which insured become liable.
    3.Comprehensive policy :
    This policy covers all risks to be insured
    arising out of legal liability that is to third
    party under motor vehicle act , total
    accident and common law . The
    comprehensive policy covers the following
    risks:
    1. Damage to car parts or body.
    2. Removal charges for repairs.
    3. Third party liabilities.
    4. Cost and expenses incurred with risk.
    5. Repair charges.
    6. Medical expenses.
    At the payment of extra premiums, the
    following risks are also insured:
    a) Death or injury to family members
    who are above 16 years and below 65
    years.
    b) Riots , strikes , thefts ,larceny etc.
    c) Loss of Rugs.
    Parameters that decide Premium:
    1. Class of vehicles
    2. Make of vehicles
    3. Type of body
    4. Age and Experience of drivers
    5. Nature of business in which vehicle is engaged (in
    case of commercial vehicles)

    Higher the risk , more will be the amount of


    premium. Rebate in premium is allowed if there is
    no loss to the vehicle in previous years.
    SETTLEMENT OF CLAIMS
    1. Preliminary stage:
    a. First a notice of loss is served on insurer by
    the insured.
    b. Insurer checks records to find out whether
    policy is in force or lapsed.
    c. The loss is entered in claims register.
    d. A claim form is issued to insured for
    completion and return.
    2.Assessment:
    Independent automobiles surveyors are
    employed or assigned the work of assessing
    the cause and extent of loss.
    In case of minor damage claims independent
    surveyor is not appointed. The officials of
    insurer or its engineer inspect and finalize
    the claim report.
    3.Settlement:
    The survey report is the basis of claim settlement.
    The report is examined and settlement is done
    according to recommendations in the report. The
    usual practice is to authorize repairs. The repairer
    receives a letter from insurer. The repairer gets
    payment after completion of repairs. The insured
    must give a satisfaction note or voucher that he is
    satisfied with the repairs.
    The repairs may be paid by the insured directly.
    Conclusion:
    In India, under the provisions of the Motor
    Vehicles Act,1988,it is mandatory that every
    vehicle should have a valid insurance to drive
    on the road. This is a tariff class of business.
    So the covers , premium rate and policy
    forms are all standardised or uniform.

    You might also like