MOTOR INSURANCE-PART 1
- The first Motor Car was introduced in to England in the year – 1894
- The Motor Policy was issued in – 1895 to cover Third Party Liabilities
- Comprehensive Motor Policy issued in – 1899
- Car and General Insurance Corporation Limited established in – 1903
- Compulsory TP insurance acts are – Road Traffic Acts 1930 & 1934
- The above two acts are consolidated by – Road Traffic Act, 1960
- In India the Motor Vehicles Act was passed in – 1939
- Compulsory TP Insurance introduced in India in – 1946
- Motor Vehicles 1939 Act replaced by – The Motor Vehicles Act 1988 and come into force from 1st July, 1989
- Under Section 146 of the M.V.Act, 1988 no person shall allow any other person to use a vehicle in a– public place unless the vehicle is covered by insurance
- In the event of Total Loss of the vehicle, insurers pay the Insureds Declared value of the vehicle as defined – in GR 8 of the Revised Motor Tariff
- Agreed value policies are prohibited by the Tariff except for – Vintage Cars as defined in GR 5
- Subrogation is modified by Agreements between Insurers – ex: Knock for Knock Agreement
- Contribution arises when there is a – Double Insurance
- The contribution condition is specially worded in private car policies because the owner is also covered for Third Party Liability while – driving cars not belonging to him
- “Motor Vehicle” is defined in Section 2(28) of the M.V.Act, 1988 as – any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external source and includes a chassis to which a body has not been attached and a trailer
- Vehicle running upon fixed rails or an vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding 25 cc – is not come under “Motor Vehicle” definition
- Private Car means – ( a ) Private car type vehicles used for social, domestic and pleasure purposes and also for professional purposes ( b ) motorized three wheeled vehicles ( including motorized rickshaws / cabin body scooters used for private purposes only ) ( c ) Three wheeled vehicles (including motorized rickshaws, cabin scooters used for private purposes )
- Previously there is a “Goods carrying vehicles ( own goods )” & Goods carrying vehicles ( General Cartage ) but now – goods carrying vehicles is called as “ Goods carriage” only and there is no categorization of Public carrier and private carrier
- But Motor Tariff categorized for rating purpose as – Own goods Carrier and General Cartage Carrier
- In revised Tariff ( 1.7.2002) T.A.C. renamed as – Public Carrier and Private Carrier for rating purpose
- Passengers Carrying Vehicles – ( i ) Four wheeled vehicles and three wheeled vehicles used for carrying passengers for hire or reward with carrying capacity not exceeding 6 passengers (ii) Four or more Wheeled passenger carrying vehicles with carrying capacity exceeding 6 passengers and three wheeled passenger carrying vehicles with carrying capacity exceeding 17 passengers for hire or reward (iii ) Motorized three wheeled passenger carrying vehicles with
carrying capacity exceeding 6 passengers but not exceeding 17 passengers for hire or reward
(iv ) Motorized two wheelers used for carrying passenger for hire or reward - Passenger Carrying Vehicles ( 4 wheeled and 3 wheeled ) for hire or reward – ( i ) Taxis or Private car type vehicles plying for public hire ( ii ) Private Type Taxis let out on Private Hire direct from the Owner with or without meters and driven by the Owner or an employee of the Owner
( iii ) Private car type vehicles let out on Private Hire and driven by the Hirer or any driver with his permission ( iv ) Private Car type vehicles owned by Hotels and hired by them to their guests - How many type of Miscellaneous and Special type of Vehicles are there – Total 58 type of vehicle are there under this section
- Compulsory Excess is applicable to – all Miscellaneous and Special Type of vehicles
- Liability only policy covers – Third party Liability for bodily injury and/or death and property damage. Personal accident cover for Owner Driver is also included
- Under Motor Tariff Regulations GR 45 A says – the insured can take restricted cover for Fire and/ or Theft risks if the vehicle may be laid up in garage and not in use
- Chapter VII – A and Chapter VIII of the Act provide for insurance of Motor Vehicles against –Third Party Risk
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