Motor insurance originated in the UK in 1864 and later expanded in India through legislation. There are two main types of motor insurance policies - Form A covers mandatory third party liability, while Form B additionally covers own damage claims such as accidents and theft. Key factors that determine premium rates include the driver's class, vehicle use and value, and claims history. The document outlines the claim procedures and required documents for own damage, theft, and third party bodily injury claims, such as a police report, vehicle registration, and surveyor's assessment.

1. Motor Insurance Policies, Issues
and Claims
Public System Management
Presented by:
Uday Doyal

2. Motor Insurance
• Originated in UK in England in 1864
• It originally covers third party damages later in
1899 it was extended to cover accidental
damage
• In India, after passing of Motor Vehicles Act,
third party insurance was introduced
compulsorily in 1946.
• All India Motor Tariff governs motor insurance
business in India.

3. Loss exposure arising from the
automobile accidents
• Legal liability for harm caused to others as a
result of negligence
• Bodily injury
• Property damage and/or theft of vehicles.

4. Premium Rating :Factors
• Driver’s Class
• Territorial Rating
• Vehicle Classification
• Technical Classification
• Value of the Vehicle
• Use of vehicle
• Geographical area of operation
• Claims exprience

5. Types of Motor Insurance Policies
• According to AIMT, all classes of vehicles use
two types of Policy - Form A & Form B.
• Form A is known as Act Policy covers Act
Liability
• Form B is known as Comprehensive Policy
covers additional losses or damages.

6. Form A Policy
• As per Motor Vehicles Act, all vehicle plying in
India must posses Act policy all the time.
• Violation is a punishable offence with fine
• The Policy Covers:
– Third Party Property Damages/Bodily injury
– Insured Legal liability as per MV Act
• The period of the policy is generally 12
months from the date of inception.

7. Form B Policy
• It is an optional cover and varies with different
classes of vehicles.
• For private cars and motorcycles there are two
Sections whereas for Commercial vehicles there
is an additional Section.
• Section I of the Comprehensive Policy covers
– Loss due to fire, explosion or lightning
– Earthquake, flood, storm etc
– Theft & Burglary
• It also covers “Protection and Removal Cost” &
“Authorization Cost”

8. • Section II of the Form B Policy covers liabilities
towards third Parties.
• Section III of the Form B Policy is applicable
only to vehicles used for commercial purposes
• Exclusion of Form B Policy
– Driver being under intoxication
– Absence of valid license by the driver
– Damage to tyre
– Wear and tear, mechanical breakdown

9. Motor Insurance Claims
• Own Damage Claims
• Theft Claims
• Third Party Bodily injury Claims : Fatal and
Non-Fatal

10. Own Damage Claims
• Documents Required
– Claim form
– Registration certificate & Driving license
– FIR copy
– Fitness certificate
– Trip Sheet
– Survey Report

11. Procedure for Claiming Own Damages
• Informing the insurer
• Policy document verification and appointment
of Surveyor
• Photograph of the vehicle should be taken in
case of major accident.
• Examination and Settlement based on
Surveyor report.

12. Theft Claims
• Partial and Total loss “due to theft” claims
• Procedure:
– Submission of necessary documents to the insurer in
addition to certified FIR copy
– Surrender of the registration book and tax book. RTO
should be informed.
– Letter of indemnity and subrogation
– Ignition keys of the vehicle
– Certificate of insurance and original insurance policy
– Specially worded discharged voucher

13. Third Party Bodily Injury Claims
• Intimation of Claims: Sources
– Insured directly
– Claimant
– MACT/Court notice
• Investigation
• Appointment of advocate
• Policy Copy
• Driver’s license
• Compliance Policy Conditions