Page 200 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 11: Motor Insurance

(c) Riot and strike Notes
(d) Earthquake (fire and shock damage)
(e) Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost
(f) Accidental external means
(g) Malicious act
(h) Terrorist activity
(i) Transit by road, rail, inland waterway, lift, elevator or air
(j) Landslide/rockslide

Exclusions:
Consequential loss,
Depreciation,
Wear and tear,
Mechanical or electrical breakdowns, failures or breakages,

Damage to tyres unless the vehicle is damaged at the same time, and
Loss when the vehicle is driven under the influence of intoxicating liquor or drugs.

In the motor cycle and commercial vehicle policy there are additional exclusions:
Notes

(a) Loss of or damage to accessories by burglary, housebreaking or theft unless the
vehicle is stolen at the same time.

(b) In commercial vehicle policy, there is a further exclusion: Damage caused by
overloading or strain of the vehicle.

Towing Charges

If the motor car is disabled as a result of damage covered by the policy, the insurers bear a
reasonable cost of protecting the car and removing it to the nearest repairers, as also the reasonable
cost of re-delivery to the insured. The amount so borne by the insurers is limited to maximum
of ` 2,500/- in respect of any one accident.

Example: For motor cycles, the limit is ` 300/-, for cars ` 1500/- and for commercial
vehicles ` 2500/-.

Repairs

Ordinarily repairs arising out of damage covered by the policy can be carried out only after they
are authorized by the insurers. However, the insured is allowed to carry out the repairs without
authorization from the insurers, provided that:
(a) The estimated cost of such repair does not exceed ` 500/- (` 150/- for motor cycles).
(b) The insurers are furnished forthwith with a detailed estimate of the cost; and
(c) The insured gives the insurers all the assistance to ensure that such repair is necessary and
that the charge is reasonable.

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