Page 197 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes The Motor Vehicles Act, 1939, introduced compulsory insurance with the intention of
safeguarding the interests of pedestrians.
The insurance of third party liability taking place from the use of motor vehicles in public areas
is made compulsory while the insurance of motor vehicles against damage is not compulsory.
No motor vehicle can stroll in a public place without such insurance.

The liabilities which involve compulsory insurance are as follows:
(a) Liability incurred in respect of damage to any property of a third party;
(b) Liability incurred in respect of death or bodily injury of any passenger of a public service
vehicle;
(c) Any liability incurred by the insured in respect of death or bodily injury of any person
including owner of the goods or his authorised representative carried in the carriage;

Liability arising under Workmen’s Compensation Act, 1923 in respect of death or bodily
injury of:

Conductor, or ticket examiner (Public service vehicles);
Paid driver of the vehicle;
Workers, carried in a goods vehicle.
(d) Liability in respect of bodily injury or death of commuters who are brought for hire or
reward or by reason of or in pursuance of contract of employment.
The policy of insurance must wrap the liability incurred with respect to any type of accident as
follows:

(a) In respect of damage to any possessions of third party: A limit of ` 6,000/-.
(b) In respect of death of or bodily injury to any person, the amount of liability incurred is
unlimited.

If the liability caused due to death of any passenger or bodily injury to any passenger of a public
service vehicle in a public place, then in that case the amount of liability incurred is unlimited.

Caselet 6 Things That Spike Your Auto Insurance

ou may already know the importance of shopping around to score the best rate on
your auto insurance premiums, but did you know that certain factors (or the absence
Yof them) could cause your insurance premiums to rise?

To understand what makes your insurance premiums spike, it helps to understand the
basic nature of auto insurance: Insurers make money when they insure drivers who don’t
have accidents, and don’t make claims. They lose money when the opposite happens. As
such, it is in the insurer’s best interest to predict driver risk factors as accurately as possible.
When any of the following factors are present in your life, they indicate an increased
likelihood that you, as a potential auto insurance policyholder, may have an insurance
claim that will cost the insurer money. To compensate for the increased likelihood of a
pay-out, insurers charge you more money in the form of a raised premium. Here are six
things that spike your auto insurance.

Contd...

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