This presentation highlights about Motor Insurance, Types Basis of Sum Insured, Dos and Don'ts for Motor Insurance and General Advice for Motor Insurance

1. Topic:Motor Insurance
Marketing of Financial Services

2. Motor Insurance
• What is Motor Insurance?
• Types of Motor Insurance?
• Basis of Sum Insured?
• Dos and Don'ts for Motor Insurance
• General Advice for Motor Insurance

3. Motor Insurance
Motor insurance is a protection to the vehicle owner against
(i). damages to his/her vehicle and
(ii). pays for any Third Party Liability determined as per law against the
owner of the vehicle.
• Third Party Insurance is a statutory requirement.
• The owner of the vehicle is legally liable for any injury or damage to third
party life or property caused by or arising out of the use of the vehicle in a
public place.

4. Types of Motor Insurance:
• Broadly there are two types of insurances policies that offer motor insurance
cover:
• Liability Only Policy (Statutory requirement)
• Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually
called O.D Cover
• Remember that if you take only a Liability Only Policy, damage to your
vehicle will not be covered.
• Hence, it would be prudent to take a Package Policy which would give a
wider cover, including cover for your vehicle.

5. Basis of Sum Insured:
• For Own Damage(IDV)
The Sum Insured under a Motor Insurance policy reflects the value of the motor
vehicle determined based on the concept known as Insured's Declared Value.
Insured's Declared Value is the value arrived at based on the Manufacturer's present
value and depreciation based on the Age of the Vehicle.
• For Third Party:
Coverage is as per requirements of the Motor Vehicles Act, 1988 . Compulsory
Personal accident cover for owner-driver is also included. Policy can also be
extended to cover various other risks like Personal Accident to occupants of vehicle,
Workmen's Compensation to Driver, etc over and above the cover available to him
under statute.

6. Dos and Don'ts for Motor Insurance
Dos
When you buy a motor insurance policy you should:
• Know that you can buy this policy through anyone and there is no compulsion to buy it through your
vehicle dealer
• Fill the proposal form yourself even if the vehicle dealer is arranging for the insurance
• Fill the proposal form carefully and factually and thoroughly
• Keep a copy of the completed proposal for your records
• Read the policy brochure/ prospectus carefully to know what is covered and what is not
• Ask for information about add-on covers that may be available and choose what suits you
• Give documents such as RC Book, Permit and Driving Licence to the insurance company for
verification
• Ensure that you keep these documents updated from the authorities concerned

7. Dos and Don'ts for Motor Insurance
Don’ts
• Don’t let anyone else fill your proposal form
• Don’t leave any column blank
• Don’t forget to renew your policy without any break
• Don’t forget to ask for the correct procedure when you buy a used car
that already has insurance.
• Don’t make false declarations about the actual use of the vehicle you
are insuring

8. General Advice for Motor Insurance
When you decide to buy an insurance policy:
• Check if the company selling the policy is registered with IRDAI
• Make sure you buy the policy through a genuine licensed agent or
broker. Ask for an identity card or licence
• You can also buy policies from the company directly
• Read the policy brochure/ prospectus carefully and get to know what
the policy covers and does not cove

9. You tube Link
https://youtu.be/VEzhUWWTusU