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Unit 11: Motor Insurance

The police keep the investigations going until the vehicle is traced and delivered to its owner. Notes
However, if they do not succeed in recovering the vehicle after a period of, say 1-2 months, they
file away the case certifying that the case is classified as true but undetected. This police certificate
referred as “Non-Traceable” certificate is essential before a total loss following theft is settled
by the insurers.
The documents to be submitted by the insured will be the same as those described above. It will
be necessary for the insured to obtain duplicate ones from the Registering Authority and thereafter
deposit them with the insurers.
The only additional documents will be addressed by the Insured to the R.T.O. informing about
the loss of the vehicle due to theft and filing a non-user form so that he is not made liable to pay
the taxes.
Some insurers also obtain from the insured a special type of a Discharge on a stamped paper
whereby the Insured undertakes to refund the claim amount if the vehicle is subsequently traced
and delivered to him by the police. He also undertakes in the Discharge Form to pay any taxes
which may be outstanding against the stolen vehicle. The ignition keys R.C. Books etc. are
preserved by the Insurer in their custody so that these are made readily available if the vehicle
is traced at a later date. It is always prudent to inform the concerned Registering Authority by a
Registered A/D letter that a total loss claim is being processed for payment in respect of the
stolen vehicle and to request them not to transfer the ownership of the vehicle to anyone. This
will prevent the thief from disposing of the stolen vehicle.

Self Assessment

Fill in the blanks:
7. On receipt of ……………………………….., the policy records are checked to see that the
policy is in force and that it covers the vehicle involved.
8. Independent automobile surveyors with engineering background are assigned the task of
assessing the …………………………… and ………………………… of loss.
9. The …………………………………………. is examined and settlement is effected in
accordance with the recommendations contained therein.
10. Total losses can arise due to the …………………….. of the vehicle and its remaining untraced
by the police authorities till the end.

11.4 Third Party Claims

You need to learn about third party claims. Let’s discuss about them. Section 165 of the Motor
Vehicles Act 1988, empowers the State Governments to set up Motor Accident Claims Tribunals
(MACT) for adjudicating upon third party claims. When a tribunal has been set up for an area, no
civil court has any jurisdiction to entertain any claim falling under the tribunal’s jurisdiction.

The aggrieved party has to move the tribunal within a period of six months from the date of
accident. While making the award, the tribunal has to specify the amount payable by the insurer.

Task Collect some real life examples of third party claims and prepare a chart.

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