Highlights

As per the Motor Vehicles and Road Traffic Act,  it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance.

Two types of covers are available:

1. Liability only policy. This covers third party liability for bodily injury and / or death and property damage
2. Comprehensive policy. This covers loss or damage to the vehicle insured in addition to (1) above.

No- claim discounts are available on renewal of policy, ranging from 20% to 60%, depending upon the type of vehicle and the number of years for which no claim has been made.

Scope

Liability Only policies:

The policy covers the vehicle owner’s legal liability to pay compensation for:

1. Death or bodily injury to a third party person.
2. Damage to third party property.

Package Policy

In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to:

1. Fire, explosion, self-ignition or lightning.
2. Burglary, housebreaking or theft.
3. Riot and Strike & Civil Commotion (Add on cover)
4. Malicious Act.
5. Earthquake (Fire and Shock) Damage. (Add on cover)
6. Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm. (Add on cover)
7. Accidental external means.
8. Whilst in transit by road, inland waterway, lift, elevator or air.

A restricted cover is also available covering the risk of Fire and/or Theft, in addition to the compulsory cover granted under “Liability Only Policy”.

The important exclusions under the policies are:

• Wear and tear, breakdowns
• Consequential loss
• Loss when driving with invalid driving license or under the influence of alcohol.
• Loss due to war, civil war, etc.
• Claims arising out of contractual liability.
• Use of vehicle otherwise than in accordance with `limitations as to use ‘ (e.g. private car being used as a taxi)

Who can take the policy?

Any vehicle owner whose vehicle is registered in his/her name with the Licensing Office.

How to claim?

In the event of an incident giving rise to a claim under the policy, the following steps should be taken:

In case of accidental damage to the vehicle:

1. Immediate intimation to the policy issuing office, which will issue a Claim Form.
2. Claim Form duly filled in to be submitted along with copy of Certified Copy and Driver’s Permit at the time of accident and also estimate of repairs.
3. Vehicle will be surveyed by a Loss Adjuster, appointed by the insurance company, who shall submit his report to the company.
4. Final bills/cash memos are to be submitted by the insured.

In case of theft of the vehicle:

1. Lodge a police complaint with the police immediately.
2. Inform the policy issuing office with a copy of Police complaint.
3. Submit the Final Police Report as soon as it is received.
4. Extend full cooperation to the Loss Adjuster and/or investigator appointed by the company.

In case of liability claim:

1. Inform insurance company immediately of any incident likely to give rise to liability claim.
2. On receipt of summons from Court, the same should be sent to the company immediately.
3. Claim Form duly filled in along-with copies of certified Copy of vehicle, Drivers Permit, Police Complainant are to be submitted