Auto Insurance
Types of Vehicles Covered
Motor Cycle/Scooter
Private Car
Commercial Vehicles
a) Goods carrying vehicles
b) Passenger carrying Vehicles
c) Miscellaneous and special type of vehicle
Basis of Valuation Insurers ask for your estimate of the value
of the vehicle. This has to be determined by the value at which it
can be bought or sold in the market. This is known as the market value.
This market value should be re-determined at the time of renewal of
the claim. In the event of a claim, it is the market value at the
time of the accident or theft( not at the time of taking insurance)
or sum insured whichever is less.
No claim Bonus/ Malus No claim Bonus is the discount which is
given on the renewal of the policy in case there is no claim in the
earlier year. This discount is given only on the own damage component
of the premium. Malus is the loading on the own damage premium if
there is a claim in the previous year.
No claim Bonus/ Malus slab:
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Yr 1
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Yr 2
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Yr 3
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Yr 4
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Yr 5
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Private Car/ Taxi:
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Bonus
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20%
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35%
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50%
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65%
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| Malus |
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10%
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30%
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50%
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Motor cycle/Scooter and Commercial vehicles:
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Bonus
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20%
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30%
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35%
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45%
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55%
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Malus
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15%
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25%
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30%
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40%
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Membership of Automobile Associations
Individuals insured (not companies) who are members of recognised
Automobile Associations e.g., W.I.A.A. (Western India Automobile
Association) are entitled to 5% discount on premium subject to maximum
of Rs.100. The insured should give details about membership number
and date of expiry of membership.
Extra benefits available on payment of additional premium
Personal Accident Cover(irrespective of age):
This can be taken for passengers in the vehicle subject to a maximum
number based on the seating capacity of the vehicle.
Motor Cycle/ Scooter Rs.7.50*
Private Car Rs.5.00*
Commercial Vehicle Rs.6.00*
Rate per person/ per year for Rs.10,000
Maximum sum insured per person: Rs.2 lacs
Legal liability to paid driver: Rs.15
Legal liability to the employees of the insured: Rs.50 per employee
Benefits available whilst transacting a private vehicle
For the Seller
When insured sells his vehicle,he can :
- transfer the no claim bonus(NCB) earned to his policy on new
purchase.
- or freeze the NCB for 3 years by giving an application in the
office. The NCB can then be availed of within 3 years.
- or else insured can substitute the new vehicle in the existing
policy, on production of proof of sale of old vehicle.
For the Buyer
Similarly, when a second hand vehicle is purchased:
- The insurance can be transferred in the name of the new owner
on the production of sale letter. A transfer fee of Rs.15 is levied.
- or else , a new policy can be issued after inspection of the
vehicle.
- while purchasing the second hand vehicle, buyer should get a
police verification of the vehicle.
General information
Types Of insurance Policies
Policy A Third Party (Act Only Policy)
Act only policy, commonly referred to as third party insurance as
it covers damage or harm caused to third parties other than the
insured. It is compulsory to take this cover.
Scope of Cover :
Under this policy the company covers the legal liability of the
insured as per the Motor Vehicle Act,1988 in the following cases:
Death of or bodily injury to any person (unlimited liability)
Damage to property other than belonging to the insured or held in
trust or in the custody or control of the insured. ( Upto Rs.6000
only)
There is a provision in the motor tariff by which on the payment
of additional premium as detailed below, it is possible to take
unlimited cover for damage to property also.
Goods carrying vehicles/passenger carrying vehicles/ Misc. and special
types of vehicles : Rs.75 additional premium
Two wheeler/Private car/Taxi : Rs.50 additional premium
Policy B Comprehensive
Act only & Own Damage (loss or damage to the vehicle), is commonly
referred to as comprehensive insurance.
Scope of Cover :
The company indemnifies the insured against the loss or damage to
the motor vehicle and /or its accessories arising from:
Fire,explosion, self ignition or lightning; Burglary,house breaking
or theft; Riot and strike; Earthquake (fire and shock damage);
Flood, typhoon, hurricane, inundation, cyclone, hailstorm;
Accidental external means; Malicious act; Terrorism;
Whilst in transit by road, rail, inland waterways, lift elevator
or air.
Note :
Charges for towing the vehicle after an accident to the repairer’s
place upto a maximum of Rs.1500 for private cars & taxis, Rs.2500
for commercial vehicles and Rs.300 for two wheelers are reimbursed.
Exclusions to the Comprehensive Insurance Policy
The company shall not be liable to make any payment in respect of
Consequential loss, depreciation, wear and tear, mechanical and
electrical breakdown, failures or breakages;
Damage to tyres unless the motor vehicle is damaged at the same
time when the liability of the company is limited to 50% of the
cost of replacement; Loss or damage to accessories by burglary,
house breaking or theft unless the motor vehicle is stolen at the
same time;
Any accidental loss or damage suffered whilst the insured or any
person driving with the knowledge and consent of the insured is
under the intoxicating influence of liquor and drugs.
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