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Mahesh Kumar Sarva, Lovely Professional University Unit 11: Motor Insurance

Unit 11: Motor Insurance Notes

CONTENTS
Objectives
Introduction

11.1 Meaning of Motor Insurance
11.2 Types of Motor Insurance Policy
11.3 Procedure for Payment of Claims

11.4 Third Party Claims
11.5 Summary
11.6 Keywords
11.7 Review Questions
11.8 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the meaning of motor insurance

Enumerate the various types of motor insurance policy
Discuss the procedure for payment of claims under fire insurance
Describe the third party claims

Introduction

In the previous unit, you have studied about the meaning and definition of fire insurance. It has
dealt with explaining the elements of fire insurance. It has summarized the various kinds of
policies under fire insurance along with the procedure for payment of claim under fire insurance
and the concept of re-insurance.
In this unit, you will study about motor insurance. Vehicle insurance is the insurance which
consumers can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection
against losses incurred as a result of traffic accidents. Generally speaking, it is a cover in respect
of motorized vehicles including fire, theft, impact, collision and third party liability cover.

In the next unit, you will study about the features of health insurance policy and the procedure
and benefits of health insurance purchase. It will also deal with the claim settlement procedure.
You will study about the various types of health insurance policy in the next unit. The unit will
also explain the concept of catastrophe insurance.

11.1 Meaning of Motor Insurance

You must be aware that earlier, several pedestrians were knocked down by motor vehicles.
They were either injured or killed. They did not receive any compensation as the vehicle owners
did not have sufficient resources to compensate them because they were not insured.

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