Page 302 - DMGT303_BANKING_AND_INSURANCE

Unit 14: Marine and Motor Insurance

9. Port Risk Policy: This is to cover a ship or cargo during a period in port against the risks Notes
peculiar to a port as distinguished from voyage risks.

Tasks 1. What is marine loss control engineering? What are its benefits?
2. E-marine is the user-friendly web tool. Is it available in India? Know about
this tool and its advantages.

14.5 Motor Insurance/Vehicle Insurance/Auto Insurance/Car
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.

Vehicle insurance can cover some or all of the following items:
1. The insured party
2. The inured vehicle
3. Third parties

What is a motor vehicle?

Motor vehicle includes private cars, motorized two-wheelers and commercial vehicles excluding
vehicles running on rails.

Who can insure?

Owners of the vehicle, financiers or lessee, who have insurable interest in a motor vehicle, can
insure the vehicle.

Public Policy

In many countries, it is compulsory to purchase auto insurance before driving on public roads.
Even penalties for not purchasing auto insurance may be levied varying from state to state.
Substantial fine may be charged, license and/or registration may be suspended, as well as
possible jail time may be specified.
Usually the minimum requirement by law is third party insurance to protect third parties
against the financial consequences of loss, damage or injury caused by a vehicle.
What does motor insurance cover?

Motor insurance policies provide cover against any loss or damage caused to the vehicle or its
accessories due to the following natural and man made calamities:
Natural Calamities: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon,
hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide.

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