Page 203 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes Extra benefits

All Vehicles

(a) The Third Party premium includes cover for third party property damage in excess of the
required coverage of liability of ` 6,000/- as per the M.V.Act. In case the insured wants to
get only the liability as per act covered (i.e. ` 6,000/-) then discount in T.P. premium is
allowed.
(b) Wider legal liability to persons e.g. paid drivers etc. employed in operation and/or
maintenance of the vehicle i.e. under W.C. Act and at common law.
(c) Personal Accident cover for unnamed passengers as per the registered carrying capacity of
the vehicle up to a maximum of ` 2 lakh/person on payment of extra premium.

Private Cars

Extra fittings like radios, tape-recorders, air conditioners, etc. (Also applicable to
commercial vehicles), and
Reliability Trials and Rallies in India (Also applicable to motor cycles).

Discounts (some examples)

Voluntary excess under Own Damage Section – (Applicable to all vehicles)

Membership of recognised Automobile Association (Private cars and motor cycles)
Deletion of Riot, Strike, Earthquake, Flood, etc. (All vehicles)
Special discount for Anti-Theft device approved by AAI (2.5% on O.D. premium max. of
` 500)

Special discount of 25% on O.D. premium for vintage cars

No Claim Bonus

A discount in the premium is allowed at renewal if there is no claim during the policy year for
all vehicles.

1st Year 20%
2nd Year 25%
3rd Year 35%
4th Year 45%
5th Year 50%

Underwriting

There are several factors which are important for underwriting such as type of vehicle e.g.
imported cars, sports cars, use of the vehicle, geographical area etc. But the most important is the
age of the vehicle.

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