Motor Insurance: Classification of Motor Policies Liability Only Policy, Package Policy INSURANCE I Session 14
MOTOR INSURANCE <ul><li>One of the largest no-life business in the world </li></ul><ul><li>Statutorily mandated in most co...
MOTOR INSURANCE: Types of Policies <ul><li>Third Party Liability Policy, or Act Liability Policy </li></ul><ul><li>Compreh...
Comprehensive Policy: Coverage <ul><li>Loss or Damage to your vehicle against Natural Calamities </li></ul><ul><ul><li>Fir...
Comprehensive Policy: Exclusions <ul><li>Normal wear and tear and general ageing of the vehicle. </li></ul><ul><li>Depreci...
Third Party Liability Policy <ul><li>Covers liability as defined in Motor Vehicles Act </li></ul><ul><li>Indemnifies the i...
NCB <ul><li>No Claim Bonus (NCB) is a discount on premium of the Own Damage (OD) portion of your vehicle when you renew yo...
Claims <ul><li>Cashless Claim  –  In cashless claim facility, the repair charges of the vehicle are directly paid to the g...
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3132011 181449 f027_=_ins_i_-_session_14_-_motor

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3132011 181449 f027_=_ins_i_-_session_14_-_motor

  1. 1. Motor Insurance: Classification of Motor Policies Liability Only Policy, Package Policy INSURANCE I Session 14
  2. 2. MOTOR INSURANCE <ul><li>One of the largest no-life business in the world </li></ul><ul><li>Statutorily mandated in most countries </li></ul><ul><li>All motor vehicles are to be mandatorily insured for third party liability (Basic premise – they could cause injury or damage to others) </li></ul><ul><li>Insurance of damage to vehicles – not mandatory </li></ul>
  3. 3. MOTOR INSURANCE: Types of Policies <ul><li>Third Party Liability Policy, or Act Liability Policy </li></ul><ul><li>Comprehensive Policy, or Package Policy </li></ul>
  4. 4. Comprehensive Policy: Coverage <ul><li>Loss or Damage to your vehicle against Natural Calamities </li></ul><ul><ul><li>Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. </li></ul></ul><ul><li>Loss or Damage to your vehicle against Man-made Calamities </li></ul><ul><ul><li>Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, any damage in transit by road, rail etc. </li></ul></ul><ul><li>Personal Accident Cover </li></ul><ul><ul><li>Coverage for the individual driver of the vehicle while travelling, mounting or dismounting from the car. Optional personal accident covers for co-passengers. </li></ul></ul><ul><li>Third Party Legal Liability </li></ul><ul><ul><li>Protection against legal liability due to accidental damages resulting in the permanent injury or death of a person, and damage caused to the surrounding property. </li></ul></ul>
  5. 5. Comprehensive Policy: Exclusions <ul><li>Normal wear and tear and general ageing of the vehicle. </li></ul><ul><li>Depreciation or any consequential loss. </li></ul><ul><li>Mechanical/ electrical breakdown. </li></ul><ul><li>Wear and tear of consumables like tyres and tubes unless the vehicle is damaged at the same time, in which case the liability of the company shall be limited to 50% of the cost of replacement. </li></ul><ul><li>Vehicles including cars being used otherwise than in accordance with limitations as to use. </li></ul><ul><li>Damage to/ by a person driving any vehicles or cars without a valid license. </li></ul><ul><li>Damage to/ by a person driving the vehicle under the influence of drugs or liquor. </li></ul><ul><li>Loss/ damage due to war, mutiny or nuclear risk </li></ul>
  6. 6. Third Party Liability Policy <ul><li>Covers liability as defined in Motor Vehicles Act </li></ul><ul><li>Indemnifies the insured against legal liability to any person </li></ul><ul><li>Legally mandatory </li></ul>
  7. 7. NCB <ul><li>No Claim Bonus (NCB) is a discount on premium of the Own Damage (OD) portion of your vehicle when you renew your policy, provided you have not made any claim during the last policy period of one year. </li></ul><ul><li>Can be accumulated up to a maximum limit of 50% on OD premium. </li></ul><ul><li>In case of changing from any insurer, you can get the NCB transferred in case your vehicle is insured within 90 days of your renewal due date. </li></ul>
  8. 8. Claims <ul><li>Cashless Claim – In cashless claim facility, the repair charges of the vehicle are directly paid to the garage by the insurer, provided the vehicle is repaired in our garage network. </li></ul><ul><li>Non-cashless/ Reimbursement - If the vehicle is repaired in a garage outside the purview of the network, then you will be liable to pay the repair charges of the garage. You can get your claim amount reimbursed by submitting the original bills and payment receipts. </li></ul>

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