MEANING OF INSURANCE:-
Insurance is a procedure or contract securing compensation for loss or damage or injury on payment of premium.
DIFFERENCE BETWEEN INSURANCE AND ASSURANCE
One thing that many people find confusing is the specific use of the term ‘Insurance’ and ‘Assurance’. The basic difference between them is Insurance refers to providing cover for an event that might happen. Assurance refers to provision or cover for an event that is certain to happen.
WHAT IS AUTO INSURANCE
An Auto Insurance policy is a contract between a person pays a premium and in exchange the Insurance Company promises to pay for specific car related financial losses during the term of the policy.
WHY IT IS NEEDED?
“I drive safe and keep my vehicle locked always. I don’t need any other protection!”
Well if you think is reconsider your thoughts as car Insurance is intended for accident either for insured’s faults or for someone else. Having your vehicle insured protects you from a financial loss arising out of loss or damage to your vehicle, your liability towards third parties for personal injury, death and property damage on account of any accident involving your vehicle.
Under the provisions of Motor Vehicle Act, all vehicles that ply in public places must have an insurance policy that at least covers” Third Party Liability” as specified under the Act. Even in some states to drive a person need to carry
1. Liability coverage to pay for losses caused by him to others.
2. No fault coverage to pay for an insured and his passenger for medical and related expenses caused by injury from a car accident.
WHEN TO HAVE AUTO INSURANCE
Car insurance is to done on the date of purchase and it has to be renewed every year before the date of expiry.
NOTES
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CHAPTER 2
INTRODUCTION TO INHOUSE INSURANCE CONCEPT
INHOUSE INSURANCE:
Touchwood. You shouldn’t have an accident. Should it happen, insurance claim procedure can be tedious? But if you are insured from by Chandra Auto Insurance than you can avail cashless and hassle free policies, these two concepts will enable you to have all these below benefits at time of claim
1). Towing Facility
2).Assistance-Insurance Claim
3).Quality Repairs
4).Minimal Financial Involvement
5).Assessment with surveyors
BENEFITS OF IN HOUSE INSURANCE
Dealership have entered in strategic tie up with two GIC namely –Iffco Toko General Insurance and Reliance General Insurance Co. Ltd. which seeks to
· Put the customer high on the value chain through the simplified system and procedure, timely transaction of polices renewal, endorsements and claims.
· Second hand vehicle purchaser also being offered all the powerful privileges of the first hand customer of TKM vehicles.
· Total quality control on the insurance program of Toyota vehicles.
· A very simplified system of survey and getting the claims.
Cashless policy of ITGI (IFFCO TOKIO General Insurance) and Reliance
Here’s how it works: If the car is involved in an accident, you just need to have it towed to a Toyota-authorized garage and get the repairs done without having to worry about the rigmarole of a survey and assessment of damage. It’s a no-sweat; hassle-free insurance policy for car buyers and it could become the norm in the car insurance business.
Under the arrangement, Toyota will offer its customers relief from problems related to post-accident repairs and recovery of insurance claims by providing complete support from the dealer network. Under the arrangement, the insurer will undertake a proper survey of the damage and the policyholder can let the repairer and the insurance company sort out the post-claim issues.
Other private insurers like ICICI Lombard and Royal Sundaram Insurance also claim to provide a similar service, though they don’t call it a cashless insurance facility. Instead of tying-up with a particular car manufacturer, these insurance companies have tied up with a network of garages. The customer gets the additional many benefits under this tie-up. It will be a one stop-shop - very convenient and hassle free for customer for all his needs.
NOTES
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CHAPTER 3
INTRODUCTION TO TWO GICS HAVING TIE UP WITH DEALERSHIP
IFFCO-Tokio General Insurance Co. Ltd. (ITGI) is a joint venture between IFFCO and The Tokio Marine and Fire Insurance Co. Ltd, Japan. Incorporated on 4th December, 2000 and within this short span it has become a leading Insurance Company in India. With the Corporate office in Gurgaon and 26 operating offices, ITGI is looking at expanding the market base of general insurance in India by opening Offices in most major cities in India. With a claim process as simple and friendly as can be, it promise to give its policyholders "The Life They Deserve". To be approachable from all places, ITGI has also opened up call centers with a universal toll-free number that can be accessed throughout India.
Indian Farmers Fertiliser Co-operative Limited (IFFCO) is well known as a pioneer in large-scale fertiliser manufacturing and is the leading fertiliser producer in the country. IFFCO has a membership of about 35,000 Co-operatives at State, District and Primary level spread in 22 States and 2 Union Territories. The manufacturing plants are at Kalol, Kandla, Phulpur and Aonla which have been consistently operating at a capacity utilization of more than 100% for the past several years. The Tokio Marine & Fire Insurance Co.Ltd. has over one hundred and twenty years of experience in general insurance business and is the largest and oldest general insurance company of Japan. Tokio Marine has been continuously serving as one of the important reinsurance companies to the nationalized Indian Insurance market.
TOYOTA’S TIE UP WITH IFFCO TOKIO GENERAL INSURANCE
Iffco-Tokio General Insurance (ITGI) and Toyota Kirloskar Motor (TKM) have come together to provide cashless insurance service for Toyota customers. So all Toyota customers would be able to insure and undertake cashless repairs of insured vehicles and parts at all the 3S Toyota Dealerships. Through this tie-up, Toyota will be able to offer its customers relief from problems related to post-accident repairs and recovery of insurance claims by providing complete support from the Toyota dealer network.
Customer gets cashless facility. Under this arrangement customer will be able to carryout repairs at the 3S dealerships without having to bother about survey and assessment formalities including paying for repairs and claiming reimbursement thereafter from Insurance company. The 3S dealerships will arrange for survey of vehicle and assist in completing the other formalities at dealer centre itself.
This will save customers from this time consuming procedures involved before claiming for insurance. The customer need not remit repair charges, as the dealer from the insurance company will directly claim the assessed amount payable under the policy. Overall the process promises to be a hassle free and convenient service for Toyota customers.
ITGI's wholly owned retail distribution arm, IFFCO- Tokio Insurance Services Ltd.(ITIS) with its presence in 68 centers spread across the country and rapidly expanding, would take care of servicing Customers through a dedicated person at Toyota's Dealer point.
In addition to the benefits for the customer, the insurance promises to be a win-win partnership for both the dealers and the insurance partner. This service will strengthen relationship between the customer and the dealer as well as between the customer and the insurance company. In turn, the convenience of cash-less transaction for post accident repairs provided by Toyota motivates customers to come in for repairs at Toyota dealerships, thereby protecting them from spurious parts.
INTRODUCTION TO RELIANCE GENERAL INSURANCE CO. LTD.
Reliance General Insurance is the first private sector insurance company licensed by IRDA and is now planning to become the leading general insurer in the country. In line with the philosophy of the ADAE group, Reliance has a goal to emerge as a customer centric service organization focused on providing global best Insurance and Risk management solutions at competitive prices. Reliance is currently operating through 11 Regional Office & 22 Branches. Reliance has product spans across Motor, Health, Property, Fire and Marine customized to suit the risk profile of the individual clients. Reliance offer ‘value added services’ like portfolio analysis, on site inspection extending to safety audit, insurance awareness seminar & workshop. Coupled with cutting edge technology solutions like online policy issuance & tracking, immediate spot visit and loss assessment by professional surveyor, Reliance strive to provide hassle free, pre and post sales service.
The value additions are based on ensuring convenience at the time of pre and post sale handling. Following are some of the discreet advantages that Reliance have in offering for customer:
Ú Lucrative Reward Programmes
Ú 24 Hour Toll Free Customer Assistance Number: Customers can register a claim any time 24 Hour, 7 Days, and a week from anywhere in India. Claims can be register on a holiday. This would prove to be an immense convenience to customer.
Ú Nearly Cashless repairs for customers: Reliance would reimburse the customers claim amount directly to dealership, thereby ensuring that the insured’s hard earned money is not blocked for days. The value addition to dealership will be a satisfied customer, thereby a repeat sale.
Ú Time Bound Claim Settlement Process- Committed turnaround times for clearance for repair after service & assessment, assistance in claim documentation. Emergency Assistance –In the most unfortunate event of any accident, Reliance would be able to provide tow away services.
Ú De- Tariff awareness programmer – Being pro- active always help. Reliance would ensure that the dealerships are abreast with the latest on de-traiffing.
ÚBusiness Support Mechanism- To let dealership focus on acquisition, Reliance would support lead generation process through dedicated channel. Also, there will be additional revenue to dealership workshop,
NOTES
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CHAPTER 4
INTRODUCTION TO MOTOR INSURANCE AND TRAIFF
Motor Insurance business is presently governed by All India Motor Traiff which is uniform and mandatory for all insurers conducting general insurance business in India.
TYPES OF POLICIES
a) Liability only policy: - This covers third party liability for bodily injury /or death and property damage. Under this personal accident cover for owner driver is also included. This is also call as Third Party Insurance.
b) Package policy :- This cover loss or damage to the vehicle insured in addition to liability policy.
Note: We deal only in package policy and no third party is done by dealership
LOSS OF OR DAMAGE TO THE VEHICLE COVERED IN THE POLICY
· By fire explosion self ignition or lightning
· By burglary housebreaking or theft
· By riot and strike
· By earthquake (fire and shock damage)
· By flood typhoon hurricane storm tempest inundation cyclone hailstorms frost.
· By accidental external means
· By malicious act
· By terrorist activity
· Whilst in transit by road rail inland waterway lift elevator or air
· By landslide rockslide
BRIEF OVERVIEW OF RISK COVERED BY INSURANCE COMPANIES
1. In event of the accident caused by or arising out of the use of the vehicle against all sums which the insured shall become legally liable to pay in respect of
· death or injury to any person including occupant carried in the vehicle.
· damage to the property other than property belonging to the insured.
2. All expenses incurred in consent with the company
3. The company will indemnify any driver who is driving the vehicle on the insured order.
4. In case of death of any person entitled to indemnity under this policy the company will indemnify the personal representative.
5. The company may at its own option provide-
· arrangement for representation at any fatal inquiry in respect of death which may be subject of indemnity under this policy.
· may undertake the defence of proceeding in any court of law in respect of any act or alleged offence relating to any event which may be subject of indemnity under this policy.
Under policy cover is for both driver-owner
PERSONAL ACCIDENT COVER FOR OWNER-DRIVER
The company undertakes to pay compensation as per the following scale for bodily injury/death sustained by owner-driver of the vehicle in direct connection with the vehicle insured provided that independent of any other cause shall within six calendar month of such injury result in-
Nature of injury
Scale of compensation
Death
100%
Loss of 2 limbs or sight of an eye
100%
Permanent total disablement from injury other then above
100%
Loss of 1 limb or sight of 1 eye
50%
All the amount payable are subject to
1. compensation payable under only one of the item of the owner driver arising out of any occurrence and the total liability of the insurer shall not in the aggregate exceed Rs. 2 lakh for private and Rs. 1 lakh for taxi during any one period of insurance.
2. no compensation shall be payable if
· intentional self injury suicide or attempted suicide result in physical defect.
· Accidental occur when such person is under the influence of intoxicating liquor or drugs.
3. Compensation shall be payable directly to the insured or to his/her legal representative.
Cover is also subjected to –
· The owner-driver is the registered owner of the vehicle insured.
· The owner-driver holds an effective license in accordance with the rules of Central Motor Rules 1989 at the time of accident.
WHEN POLICY DOES NOT APPLY?
1. any accident loss/damage or liability caused sustained outside the geographical area.
2. claim is out of contractual liability.
3. loss/damage incurred while vehicle is insured is:-
· being used otherwise than in accordance with the ‘limitation to use’.
· Being driven by any person other than driver as stated in the driver clause.
4. a) any accident loss or damage to any property resulting from any consequential loss.
b) Liability arise from ionizing radiation or contamination by radioactivity from any nuclear fuel or from the combustion of nuclear fuel. For this purpose of this exception combustion shall include any self-sustaining process of nuclear fission.
5. Any accidental loss/damage or liability directly or indirectly caused by contributed to by or arising from nuclear weapon material.
6. Any accidental loss/damage or liability directly or indirectly or proximately or remotely occasioned by contributed to by or traceable to or arising out of or in connection with war, invasion the act of foreign enemies hostilities or war like operations (whether before or after declaration of war) civil war, mutiny rebellion, military or usurped power or by any direct or indirect consequence of any of the said occurrence.
TOWING DISABLE VEHICLES (APPLICABLE ONLY IN CASE OF TAXI)
The policy shall be operative whilst the insured vehicle is being used for the purpose of towing any disabled mechanically propelled vehicle and indemnity provided by liability to third parties shall subject of its terms and limitations be extended to apply in respect of liability in connection with such towed vehicle provided always that:-
· Such towed vehicle is not towed for reward.
· The company shall not be liable for the reason of this section of the policy in respect of damage to such towed vehicle property being convey thereby
NOTES
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CHAPTER 5
PREMIUM COMPUTATION
Factors on which calculation of premium depend at time of purchase of new vehicle
1. Cubic Capacity:- For the purpose of computation of the premium the cubic capacity of the vehicle is the first criteria taken in consideration. IRDA has fixed three different categories under which calculation is done these three slabs-
UP TO 1000 C.C
1001 TO 1500 C.C
ABOVE 1500 C.C
2. Cost Of Vehicle: The cost of vehicle ( as per dealer price list ) is considered to arrive at the Insured Declared Value at the time of making covernote for the vehicle sold being first time. Whereas at the time of renewal of an old vehicle either the price list of that vehicle at time getting calculation or the previous IDV can be considered alongwith the slab foe the age of the vehicle.
3. Insured Declared Value(IDV): - IDV of the vehicle will be deemed to be the “SUM INSURED” for the purpose of the tariff and it is to fixed on the basis of the manufacturer’s listed selling price of the brand and model . However the standard slab given by IRDA for the purpose of arriving at the IDV is as follows:-
AGE OF THE VEHICLE
% OF DEPRECIATION FOR FIXING IDV
Not exceeding 6 months
5%
Exceeding 6 months but not exceeding 1 year
15%
Exceeding 1year but not exceeding 2 year
20%
Exceeding 2 year but not exceeding 3 year
30%
Exceeding 3 year but not exceeding 4 year
40%
Exceeding 4 year but not exceeding 5 year
50%
4. ZONES – For the purpose of premium computation the whole India is being divided into three zones on the basis of the geographical areas, these three zones are as follows:-
lZONE A- NEW DELHI, CHENNAI, KOLKATA, MUMBAI.
lZONE B- ALL OTHER STATE CAPITAL
lZONE C- REST OF INDIA
But this is to considered that with the purpose for which vehicle is use and seating capacity the Zones may differ. For a private use vehicle we fall under Zone C, for taxi we are under Zone B, but for maxi we are under Zone C.
5. Usage of vehicle:- The computation of vehicle depend on the fact that vehicle is purchased for which purpose, there are two different categories as follows:-
a) Private Use: the vehicle is being by owner for only private use.
NEW OD RATING FOR PRIVATE CARS (ZONE-B
NOT EXCEEDING 1000 C.C
1000 C.C TO 1500 C.C
EXCEEDING 1500 C.C
3.039% ON IDV-FOR BELOW 5 YRS.
3.191% ON IDV-FOR BELOW 5 YRS.
3.343% ON IDV-FOR BELOW 5 YRS.
3.191% ON IDV (5-10 YRS)
3.351% ON IDV(5-10YRS)
3.510% ON IDV(5-10YRS)
3.267% ON IDV-ABOVE 10 YRS.
3.430% ON IDV- ABOVE 10 YRS.
3.594% ON IDV-ABOVE 10 YRS.
b) Taxi Use: the vehicle is meant for hire or reward use, and has seating capacity of 6+1
OD RATING FOR TAXI COMMERCIAL VEHICLE
Age of the
vehicle
ZONE B
ZONE A
CUBIC CAPACITY
CUBIC CAPACITY
Not exceeding
1000 cc
Exceeding 1000cc but not exceeding 1500 cc
Exceeding 1500 cc
Not exceeding
1000 cc
Exceeding 1000cc but not exceeding 1500
Exceeding 1500 cc
Not exceeding
5 years
3.191 % on IDV
3.351 % on IDV
3.510 % on IDV
3.284 % on IDV
3.448 % on IDV
3.612 % on IDV
Exceeding 5 years but not exceeding 7 years
3.271 % on IDV
3.435 % on IDV
3.598 % on IDV
3.366 % on IDV
3.534 % on IDV
3.703 % on IDV
Exceeding 7 years
3.351 % on IDV
3.519 % on IDV
3.686 % on IDV
3.448 % on IDV
3.620 % on IDV
3.793 % on IDV
Please note that we fall under Zone B in case of taxi vehicle.
c) Maxi Use: All vehicles with the seating capacity of 6+1 under commercial use are called Maxi.
Age
of
the
vehicle
ZONE C
ZONE B
Maximum Licensed Carrying Capacity
Maximum Licensed Carrying Capacity
Not exceed-ing
18 passen-gers
Exceeding 18 passengers but not exceeding 36 passengers
Exceeding 36 passengers but not exceeding 60 passengers
Exceeding 60 passengers
Not exceeding
18 passengers
Exceed -ing 18 passengers but not exceeding 36 passengers
Exceed-ing 36 passengers but not exceed ing 60 passengers
Exceeding 60 passengers
Not exceeding
5 years
Rs 350 + 1.656 % on IDV
Rs 450 + 1.656 % on IDV
Rs 550 + 1.656 % on IDV
Rs 680
+ 1.656 % on IDV
Rs 350 + 1.672 % on IDV
Rs 450 + 1.672 % on IDV
Rs 550 + 1.672 % on IDV
Rs 680
+ 1.672 % on IDV
Exceeding 5 years but not exceeding 7 years
Rs 350 + 1.697 % on IDV
Rs 450 + 1.697 % on IDV
Rs 550 + 1.697 % on IDV
Rs 680
+ 1.697 % on IDV
Rs 350 + 1.714 % on IDV
Rs 450 + 1.714 % on IDV
Rs 550 + 1.714 % on IDV
Rs 680
+ 1.714 % on IDV
Exceeding 7 years
Rs 350 + 1.739 % on IDV
Rs 450 + 1.739 % on IDV
Rs 550 + 1.739 % on IDV
Rs 680
+ 1.739 % on IDV
Rs 350 + 1.756 % on IDV
Rs 450 + 1.756 % on IDV
Rs 550 + 1.756 % on IDV
Rs 680
+ 1.756 % on IDV
Please note that we fall under Zone C in case of Maxi vehicles.
6. Service Tax: - As per government rules and regulation Service Tax @ 12.36% (w.e.f. from 1st April) is to be charged to arrive at the final premium payable by customer.
7. LPG Kit: - whenever ever a LPG Kit is installed in vehicle the calculation of LPG Insurance Premium is done is following manner.
For example:
CASE 1: AT THE TIME OF FRESH ISSUE
Cost of LPG kit = Rs 10000
At the time of installation depreciate the amount by 5% i.e. (10000-5%) = 9500
Now take the 4% of 9500 = 380
TP = 60
440
ST (12.36%) = 54
TOTAL PREM AMT. 494
Now add this figure in OD Prem.after charging the insurance percentage.
CASE 2: WHEN IT IS INSATTLED IN TENURE OF INSURANCE
Cost of LPG kit = Rs 10000
At the time of installation depreciate the amount by 5% i.e. (10000-10%) = 9000
Now take the 4% of 9500 = 360
TP = 60
420
ST (12.36%) = 52
TOTAL PREM AMT. 472
Now calculate no of days (from the date of installation till the date of renewal of the policy)
In the above case the date of installation is 14.04.07 and the date of renewal is 05.01.08 so the calculation of days will be 264 (14.04.07 - 05.01.08)
Now calculate the premium according to the days 472/365*264 = 341
So the final premium is Rs 341
Now add this figure in OD Prem.after charging the insurance percentage.
.
NOTES
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CHAPTER 6
PERMIUM COMPUTATION FOR VEHICLE UNDER PRIVATE USE
SCOPE:
Private car type vehicle used for social, domestic, and pleasure purpose and also for professional purposes (excluding the carriage of goods other than samples) of the insured or used by insured’s employees for such purposes.
PREMIUM RATING:
The various factors on which calculation of a private vehicle depend are as follows:
· IDV (insured declared value)
· Cubic capacity
· Geographical zone
· Cost of vehicle
· Age of vehicle
· Service tax
· Personal accident coverage to owner driver
· Personal accident coverage to passengers It is be noted that this item (optional )an insured may avail this facility on 2 different slabs i.e.,
@ Rs 50/ per passenger subjected to the coverage of Rs. 2 lakh
@ Rs 100/ per passenger subjected to the coverage of Rs. 3 lakh
· Personal accident coverage to driver
· Name of the insured:- If the insurance covernote is at the name of the institution, than the charge of the P.A to owner is not charged since the owner is not decided. If the vehicle is at the name of an individual than the P.A to owner is to be charged.
LIMITATIONS TO USE:
The policy covers use of the vehicle of any purpose other than
a) Hire or Reward
b) Carriage of goods (other than samples or personal luggage)
c) Organized racing
d) Pace making
e) Speed testing
f) Reliability Trials
g) Use in connection with Motor Trade
TP PREMIUM FOR PRIVATE CARS
RATES
nUPTO 1000 C.C : RS.670/-
n1000 TO 1500C.C: RS. 800/-
nABOVE 1500 C.C : RS.2500/-
CALCULATION FOR PRIVATE VEHICLES (7&8 SEATER)
I.D.V OF VEHICLE: 1, 00,000
INSURANCE (3.343%) 3343
LIABILITY 2500
P.A TO PASSANGER (50/PASS) 350
P.A TO OWNER 100
P.A TO DRIVER 25
PREMIUM BEFORE TAX 6318
SERVICE TAX (12.36%) 780
TOTAL PREMIUM AMOUNT 7098
ZONE
As per IRDA norm we fall under ZONE B in case of PRIVATE VEHICLES so we have to use 3.343% of I.D.V for the purpose of calculating liability
DISCOUNT AVAILABLE:
While making a cover note in RELIANCE General Insurance we can provide 10% discount on OD premium in case of private usage vehicle.
I.D.V OF VEHICLE: 1, 00,000
INSURANCE (@3.343% of I.D.V) 3343
DISCOUNT (10%) 334
3008
LIABILITY 2500
P.A TO PASSANGER (50/PASS) 350
P.A TO OWNER 100
P.A TO DRIVER 25
PREMIUM BEFORE TAX 5983
SERVICE TAX (12.36%) 739
TOTAL PREMIUM AMOUNT 6722
NOTES
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CHAPTER 7
PREMIUM COMPUTATION FOR VEHICLE UNDER TAXI USE
Basic difference between taxi and maxi vehicle:-When a vehicle with seating capacity of 6+1 and are use for commercial purpose are consider as taxi whereas the vehicle used for the purpose of commercial purpose with the seating capacity of 7+1 are called as Maxi.
Factors consider for calculating the premium: - The various factors on which calculation of a private vehicle depend are as follows:-
· IDV (insured declared value)
· Cubic capacity
· Geographical zone
· Cost of vehicle
· Age of vehicle
· Service tax
· Personal accident coverage to owner driver
· Personal accident coverage to driver
· Name of the insured: - If the insurance cover note is at the name of the institution, than the charge of the P.A to owner is not charged since the owner is not decided. If the vehicle is at the name of an individual than the P.A to owner is to be charged.
Items to be charged in case of a taxi vehicle:-In order to clarify the same let us have one example:
CALCULATION FOR TAXI VEHICLES (7 SEATER)
IDV OF VEHICLE: 1, 00,000
LIABILITY (3.510%) 3510
ACT 2840
P.A TO PASSANGER (350/PASS) 2100
P.A TO OWNER 100
P.A TO DRIVER 25
PREMIUM BEFORE TAX 8575
SERVICE TAX (12.36%) 1060
TOTAL PREMIUM AMOUNT 9634
ACT:
This amount is payable as a premium for liability cover .The amount has been fixed by the GIC .following is the table for act and Per Passenger computation
Four wheeled vehicles used for carrying passengers for hire or reward with carrying capacity not exceeding 6 (six) passengers
Premium
Premium (Per licensed Passenger Capacity)
(A)
(B)*
Cubic Capacity of the vehicle
(Rs)
Not exceeding 1000 cc
1650
350
Exceeding 1000 cc but not exceeding 1500 cc
2330
350
Exceeding 1500 cc
2840
350
*TP Premium is the total of a basic amount (A) plus an amount derived by multiplying the licensed carrying capacity by an amount B
NOTES
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CHAPTER-8
MAXI VEHICLE
Factors consider for calculating the premium: - The various factors on which calculation of a private vehicle depend are as follows:-
· IDV (insured declared value)
· Cubic capacity
· Geographical zone
· Cost of vehicle
· Age of vehicle
· Liability
· IMT (Indian Motor Tariff)
· ACT
· Personal accident coverage to owner driver
· Personal accident coverage to driver
· Name of the insured: - If the insurance cover note is at the name of the institution, than the charge of the P.A to owner is not charged since the owner is not decided. If the vehicle is at the name of an individual than the P.A to owner is to be charged.
· Service tax
CALCULATION FOR MAXI VEHICLES (8 SEATER)
I.D.V OF VEHICLE: 1, 00,000
BASIC 350
LIABILITY (1.656%) 1656
2006
IMT 23 (15%of amt. after NCB) 241
ACT 3160
P.A TO PASSANGER (235/PASS) 1645
P.A TO OWNER 100
P.A TO DRIVER 25
PREMIUM BEFORE TAX 6776
SERVICE TAX (12.24%) 829
TOTAL PREMIUM AMOUNT 7605
ACT:
This amount is payable as a premium for liability cover .The amount has been fixed by the GIC .following is the table for act and Per Passenger computation
Four or more wheeled vehicles 3160 235
With carrying capacity exceeding 6 passengers for hire or reward
TP Premium is the total of a basic amount (A) plus an amount derived by multiplying the licensed carrying capacity by an amount B
NOTES
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CHAPTER 9
DISCOUNTS AND DEDUCTIBLES
DRIVE SAFE, PAY LESS!
Every comprehensive motor policy is subject to the Bonus / Malus clause. What does all this mean to you? A lot. “Bonus” as the word suggest means a discount on the premium amount for not lodging a claim .Every claim free car earns a “No Claim “
ALL TYPES OF VEHICLE
%OF DISC. ON OWN DAMAGE PREMIUM
No claim made or pending during the preceding full year of insurance
20%
No claim made or pending during the preceding 2 consecutive year of insurance
25%
No claim made or pending during the preceding 3 consecutive year of insurance
35%
No claim made or pending during the preceding 4 consecutive year of insurance
45%
No claim made or pending during the preceding 5 consecutive year of insurance
50%
Earned by insured on same vehicle: At the time of the insurance renewal, insured is considered eligible for the No Claim Bonus, if he has filled no claim during the tenure of Insurance. Following are the rules in this regard: -
a). No Claim Bonus: - This can be earned only in the own damage section of policies covering all classes of vehicles but not on Motor Trade Policies (Road Transit Risks/ Road Risks/Internal Risks) and policies which cover only fire and/or theft risk. For policies covering liability with fire and/or theft, the NCB will be applicable only on the fire and/or theft components of the premium. An insured becomes entitled to NCB only at the renewal of a policy after the expiry of the full duration of 12 months.
b). No Claim Bonus, wherever applicable will be as per the following table
ALL TYPES OF VEHICLE
% OF DISCOUNT ON OWN DAMAGE PREMIUM
No claim made or pending during the preceding full year of insurance
20%
No claim made or pending during the preceding 2 consecutive years of insurance
25%
No claim made or pending during the preceding 3 consecutive years of insurance
35%
No claim made or pending during the preceding 4 consecutive years of insurance
45%
No claim made or pending during the preceding 5 consecutive years of insurance
50%
Sunset Clause: - An insured becomes entitled to an NCB in terms of the previous tariff.
Note: this will remain protected for all subsequent renewals till a claim arises (in such case the ncb will revert to nil.)
If at the renewal falling due any time between 1st July, 02 and 30th June, 03
Both days inclusive (after completion of the full policy period of 12 months) an insured become entitled to an NCB of 55% or 65% in terms of the Tariff prevailing prior to 1st July 2002, the entitlement of such higher percentage of NCB will remain protected for all subsequent renewals till a claim arises under the policy, in which case the NCB will revert to nil at the next renewal. Thereafter NCB if any earned, will be in terms of the table given before.
c). The percentage of applicable NCB is to be computed on the own damage premium required for renewal of the insurance after deducting any rebate in respect of “Vehicle Laid Up” under the policy. If the policy period has been extended in lieu of the rebate for the lay up of the vehicle, as per “Vehicle Laid Up” regulation, such extended period shall be deemed to have been part of the preceding year of Insurance.
d). In the event of transfer of interest in the policy from one insured to another, the entitlement of NCB for the new insured to another, the entitlement of NCB for the new insured will be as per the transferee’s eligibility following the transfer of interest. The entitlement of NCB will be applicable for the substituted vehicle on which the entitled NCB is to be applied is of same class as the vehicle on which the NCB has been earned. Provided that where the insured is an individual and on his/her death the custody and use of the vehicle pass to his/her spouse and/or children and/or parents, the NCB entitlement of the original insured will pass on to such person/to whom the custody and use of vehicle pass.
e). The percentage of NCB earned on a vehicle owned by an institution during the period when it is allocated to and exclusively operated by an employee should be passed on to the employee if the ownership of the vehicle is transferred in the name of the employee. This will however require submission of a suitable letter from the employer confirming that prior to transfer of ownership of the vehicle to the employee, it was allotted to and exclusively operated by the employee during the period in which the NCB was earned.
f). In the event of the insured, transferring his insurance from one insurer to another insurer the transferee insurer may allow the same rate of NCB which the insured would have received from the previous insurer. Evidence of the insured’s NCB entitlement either in the form of a renewal notice or a letter confirming the NCB entitlement from the previous insurer will be required for this purpose.
Where the insured is unable to produce such a evidence of NCB entitlement from the previous insurer the claimed NCB may be permitted after obtaining from the insured a declaration as per the following wording:-
“I/We declare that the rate of NCB declared by me/us is correct and that no claim as arisen in the expiring policy period ( copy of the policy enclosed ). I/We further undertake that if this declaration is found to be incorrect all benefits under the policy in respect of Section I of the policy will stand forfeited.”
Notwithstanding the above declaration, the insurer allowing the NCB will be obliged to write to the policy issuing office of the previous insurer by recorded delivery calling for confirmation of the entitlement and rate of NCB for the particular insured and the previous insurer shall be obliged to provide the information sought within 30 days of receipt of the letter of enquiry failing which the matter will be treated as a breach of Tariff on the part of the previous insurer. Failure of insurer granting the NCB to write to the previous insurer within 21 days after granting the cover will constitute a breach of the Tariff.
g). If an insured vehicle is sold and not replaced immediately after expiry, NCB if any may be granted on a subsequent insurance, provided such fresh insurance is effected within three years from the expiry of the previous insurance. The rate of NCB applicable to the fresh policy shall be earned at the expiry of the last 12 months period of insurance.
h). On production of evidence of having earned NCB abroad, an insured may be granted NCB on a new policy taken out in India as per entitlement earned abroad, provided the policy is taken out in India within three years of expiry of the overseas insurance policy, subject to relevant provisions of NCB under these rules.
i). Except as provided in rule (g), no NCB can be allowed when a policy is not renewed within 90 days of its expiry.
j). Except as provided in rule (g) (h) and (i) above NCB is to be allowed when the vehicle has been insured continuously for a period of 12 months without a break.
Automobile Association Membership Discount:
For valid membership of recognized Automobile Associations such as Automobile Associations of Eastern India, the Uttar Pradesh Automobile Associations, the Western India Automobile Associations, Automobile Associations of Southern India, the Automobile Associations of Upper India, a discount @ 5% of the own damage premium, subject to a maximum of Rs.200/-for a private Car and maximum of Rs 50/- for a motorized two wheeler may be allowed.
It is however ,clarified that irrespective of the number of association of which an insured may be a member, discount for only one membership of such association is to be permitted.
On cancellation or termination of the membership of the Automobile Association during the currency of membership till the expiry of the policy is to be recovered from the insured.
Discount for Vintage Cars:
Private Cars certified by the Vintage and Classic Car Club of India as Vintage Cars will be eligible for 25% discount on Own Damage Premium.
For mid-term certification as Vintage Car pro-rata proportion of the tariff for the expired period of the policy is to be allowed.
Discount for Anti- Theft Devices:
Vehicles (other than those covered under motor trade policies) fitted with anti –theft devices approved by Automobile Research Association (ARAI) , Pune and whose installation is duly certified by any of the Automobile Association mentioned in GR.28 above are eligible for a discount of 2.5% on the OD components of premium subjects to a maximum of Rs 500/-
For mid-term installation of anti-theft device approved and certified as above in the vehicle insured, pro rata proportion of the premium discount calculated as per tariff provision for the unexpired period is to be allowed.
Concession for Laid –up Vehicle
1. For Liability Only Policy –
A pro-rata return of premium for the period during which the vehicle is so laid up, which return will be credited to the insured in consideration of suspension of the insurer’s liability under the policy during the period of lay-up.
The credited return of premium will be deducted from the next renewal premium. This cannot be given as cash refund even if the policy is not renewed with the same insurer.
2. For Package Policy –
The liability of the insurer under the policy will remain restricted for loss or damage of the insured vehicle by Fire and/or Theft as application during the period of such lay-up. In consideration of this restriction of cover under the policy:-
a) A pro rata return of premium for the period during which the vehicle is so laid up will be credited to the insured after retention of pro rata premium for the lay-up period in the tariff rate for Fire and/ or Theft Risks as applicable for the class of vehicle concerned.
The credited return of premium will be deducted from the renewal premium. This cannot be given as cash refund even if the policy is not renewed with the same insurer.
The calculation of the amount of the return of premium is to be made on the net premium on the date issue of the policy or the date of renewal of the policy preceding the laying-up of the vehicle.
Concession for specially Designed /Modified Vehicle of the Blind, Handicapped and Mentally challenged persons:
In case of vehicles specially designed / modified for use of blind, handicapped and mentally challenged persons, a discount of 50% may be allowed on the Own Damage premium in respect of both privately owned and used by institutions engaged exclusively in the services of the blind, handicapped and mentally challenged persons. The discount is to be allowed only in respect of such vehicles, which have been suitably endorsed in the Registration Certificate by the RTA concerned.
Discounts available on various models
Cubic Capacity
Discount 20%
Discount 15%
Discount 10%
Erstwhile Tariff Rate
Loading 10%
Loading 20%
Up to 1000 CC
Maruti
-
All Other Models
Hyundai
-
-
1001-1500 CC
Maruti
-
General Motors, Hyundai
Ford, Honda, Fiat, Tata All other models
Mitsubishi
-
1501-1650 CC
Maruti
-
General Motors, Hyundai All other models
Ford, Fiat
-
-
Above 1650 CC
Toyota, Mercedes, Hindustan Motors, All Other Models above 2000 CC
Honda, Hyundai, Audi
General Motors, Ford, All other models 1651-2000 CC
Fiat, Skoda, Mitsubishi
-
-
Discounts according to seating capacity
Cubic Capacity
Discount 20%
Discount 15%
Discount 10%
Erstwhile Tariff Rate
Loading 10%
Loading 20%
Up to 1000 CC
Omni
-
-
All other models
-
-
1000-1500 CC
-
-
All models
-
-
-
1501-1650 CC
-
-
All models
-
-
Above 1650 CC
-
Land cruiser, Pajero,All other models with value above 10 Lacs
Armada, Commander, Safari, Endeavour, Innova, Bolero, Marshal, Scorpio
Spacio, Qualis
All other models with value up to 10 Lacs
Sumo
Tavera
Deductibles at time of claim
Items are subjected to deductions
· For all rubber /nylon/plastic parts/tyres and tubes. 50%
· For fiber glass components. 30%
· For all parts made of glass. Nil
Rate of depreciation for all other parts including wooden parts will be
Age of Vehicle
% of Dep.
Not exceeding 6 month
Nil
Exceeding 6 month but not exceeding 1 years
5%
Exceeding 1 year but not exceeding 2 years
10%
Exceeding 2 years but not exceeding 3 years
15%
Exceeding 3 years but not exceeding 4 years
25%
Exceeding 4 years but not exceeding 5 years
35%
Exceeding 5 years but not exceeding 10 years
40%
Exceeding 10 years
50%
COMPULSORY DEDUCTIBLE
lRS.500/- FOR CARS BELOW 1500 C.C
lRS.1000/- FOR CARS ABOVE 1500 C.C
NOTES
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CHAPTER 10
DOCUMENTATIONS
The following are the documents used by insurance company at various instant
1) Cover note:- It is also known as form 51 or certificate of insurance and is the basic (initial) document given to customers at the time of receipt of premium amount and it contains all the information of the vehicle and the person who insured. A cover note is valid for a period of 60 days from the date of its issue and the insurer is liable to issue a policy of insurance before expiry of the cover note. It contains details about
Þ Vehicle like engine no., chassis no, make, model etc.
Þ The detail info. about amount of premium being charged mentioning the item for which amount is being charged.
Þ Hypothecation -the name of the bank that has provided finance to insured.
Þ Effective date and time of commencement of insurance for the purpose of the act. It is noteworthy that time mentioned should be same as time written on gate pass given along with vehicle.
Þ Limitation to use: - it is one the most important factor as the whole calculation depends that for which use vehicle is purchased (taxi/private).
Þ Name of the insurance agent: - it is to be considered while giving cashless facility to any customer.
Þ In case of the cover note being torned out a new cover note is to issued on payment of additional fee.
A sample is attached in annexure
2). Proposal Form:- According to the General Regulation of IRDA before the issue of a cover note the customer has to submit a duly filled proposal form (given in Annexure ) in order to obtain the entire information about the customer and his vehicle history . There are different proposal form for both private, maxi and taxi use.
3). Insurance Policy:- On the basis of the cover note issued to the customer insurance company has to provide insured with this document from 60 days of issuing cover note. It contains all details of the vehicle and the premium charged to the customer according to General Regulation 13 it is compulsory to mention in insurance policy about any sort of discount or loading charged to customer.
The details mentioned in policy should be similar to details in vehicle registration copy then only a claim can be filled by insured.
At the time of claim this no. is written in the claim intimation form.
4. Policy Booklet: - While issuing policy to customers dealers provide them a booklet containing every detail information about the norms of Insurance to be followed by them at time of claim and otherwise . This booklet act as a guideline for customers to understand about the charges and the depreciation slabs paid by them.
5 Endorsement letter: - Whenever there is any change in material fact or any addition or subtraction in items of insurance a letter stating the change in policy is required to support the fact. This endorsement can be relating to change in insured name, vehicle detail changes or premium changes. This letter is issued only after submission of required fees of 100 Rs. A sample of endorsement letter is given in Annexure .In regard of endorsement the different cases that may arise are as follows:-
a) If a customer request for any change in address, hypothecation, name change than these changes can be done only if R.C copy is submitted by customer to support the same. Any changes that don’t meet up with the details of R.C are rejected by Insurance Co.
b) Sale of vehicle: if a vehicle is sold by insured to other person in the first year than the endorsement can done after submission of sale deed and transfer R.C copy. However, if the insured was enjoying the NCB at time of transfer than the entire amount of the NCB is recovered by the Insurance Co. on the ground that this is not transferable from person to person. In such cases the amt. of NCB and transfer R.C copy is to submitted by customer for getting endorsement letter.
c) In case a customer was earlier insured with name of firm and the P.A owner was not charged then a fee of Rs. 200 is to charged ( 100 for P.A to owner and 100 Rs. Transfer Fee)
6. Renewal Letter:- These letters are being sent to customers to remind them about the renewal of the vehicle insurance. It contains all the details of the vehicle and has an entire computation of required premium for the renewal. This letter contains information about the mode of payment acceptable by dealer, information about fact that in case of break in physical verification is to done. If a person renew his policy a new cover note and policy is issued to him for the insured tenure. A sample sheet is given in Annexure.
NOTES
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CHAPTER 11
MISCELLANEOUS CASES WITH SOLUTIONS
While working on Insurance, various situations are faced like the cheque bounce case, the policy endorsement etc. We have compiled certain situations with there solution to help out in resolvement.
Case 1: Cheque bounces after payment of premium to GIC
Since the insurance is subjected to legal matter the payment mode should be done by proper mode and at right time.
Non Micer Cheques :- A non micer cheque is not acceptable in Iffco Tokio General Insurance( but is acceptable at Reliance ),if by default a non micer is presented at Iffco they will consider it as a cheque bounce case and will demand:-
a) a micer cheque of same amt.
b) if the gap in duration of submission of a new cheque is wide a pre inspection survey of vehicle.
c). a new cover note is to be issued to insured
Case 2:- Non Clearance of cheque: -
It might happen that after a cheque is being sent to GIC it is not cleared by Bank on various grounds like freezed A/C of insured, title required by bank, insufficient funds, delayed by bank on other grounds etc. then in these cases the cover note stands void ab-intio. And insurance company has only liability of sending a notice to customer for the repayment of premium within the seven days of receiving the notice. If a customer wishes to make submission of the premium then he has submit the payment only in form of Demand Draft. Then a new cover note is issued after pre inspection survey of the vehicle.
Case 3:- Refusal by party to have insurance:-
If an insured want to discontinue the insurance and has applied to insurance Co. by means of an hand written application then the policy stands void after agreement by Insurance Co. on same.
Case 4:- POLICY REJECTION CRITERIA: -
Depending on certain criteria the Insurance company may reject the claim /policy of a customer at various instance. A few cases when the policy stands rejected are as follows:-
· If a person has insured his vehicle in a name different from the name written in th R.C copy of the customer, than the claim can be rejected by the Insurance Co.
· If a person has insuranace under private use and hes using vehicle under taxi use then his claim can be rejected by the insurance company.
· If a person is has not registered his vehicle within one year of his purchase of the vehicle than his claim can be registered by the insurance co.
· If a person has insured his vehicle from the insurance company and because of any reason (stated above) the policy gets cancelled during the period of insurance then his claim can be rejected by the company.
NOTES
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CHAPTER 12
CLAIM
Meaning of claim: Whenever an insured vehicle meet an accident and is subjected to the repair work, then the insured (if wishes) may take help of the insurance company in meeting out the repair cost by filling a claim. For the said purpose insured has to meet out the mentioned procedure for claim to avail the cashless facility.
Procedure for Claim
Ø The vehicle should be brought to an authorized TKM Dealer, and estimate of repairs got prepared. If the accident is major resulting in immobility of the vehicle, customer can contact the Dealer, who will arrange for towing of the vehicle to the workshop.
Ø No sooner a claim is intimated or known, available details be recorded and following aspects be checked by the dealer.
o Whether valid insurance policy is in existence and section 64 VB complaints
o Whether there is break in insurance/close proximity (i.e., accident within 5 days from the day of taking insurance) which requires special investigation to be done?
o Reasons for delay in intimation of claim, if any.
Ø Dealer shall ascertain whether it is minor/major accident and also whether any Third Party Personal Injury (TPPI) or Third Party Property Damage (TPPD) is involved.
Ø Dealer shall advice the customer to lodge complaint and obtain FIR in all accidents involving TPPI / TPPD as well as for major accident involving loss estimates in excess of Rs. 2,00,000/
Ø For major accidents (loss estimates in excess of Rs. 2,00,000/-) or involving multiple TPPI cases, arrangement for spot survey should be made by the Dealer , for which any of the empanelled Surveyors can be utilized.
Ø Dealer will arrange for towing of vehicle from the accident spot (in case of major accident only, where movement of vehicle on its own power is not possible). The reimbursement of the towing charges shall be as per policy limits. Dealer will arrange for reimbursing the high-end customer additional cost of towing in additional cost of towing in addition to Policy limits as per TKM advices.
Ø For loss estimates up to Rs. 1,00,000/- , Dealer is authorized to depute surveyor on rotation from the pre-fixed panel and it would be the Surveyor’s responsibility to intimate details of the claim to ITGI CSC / SBU immediately after first inspection of the vehicle. For loss estimates in excess of Rs. 1, 00,000/- , Dealer should contact ITGI CSC for deputation of Final Surveyor. The assistance of the servicing IT IS representative can be taken by the Dealer for this purpose.
Ø The Claim Form supplied should be filled in by the customer will all details and handed over to surveyor. Stocks of such Claims Forms will be maintained.
Ø Time frame for surveyor Report Submission is as under :
S.NO.
PARTICULARS
TIME LIMIT FOR SUBMISSION
1
Submission of Spot Survey Report
2 Days from date of Spot Survey
2
Submission of Final Survey Report
2 Days from date of survey and collection of all claim papers from Dealer
3
Submission of Re-inspection Survey Report ( by original system)
1 Day from the date of re-inspection
Ø Salvage: Surveyor decides on the value of salvage which will be reduced from the claim. Dealer can either retain the salvage or inform surveyor to dispose of the same through salvage buyers and arrange to remit the amount of salvage value to him.
Ø Total Loss Claims: In case of settlement of claim on total loss, basis other than by theft, all the documents stated earlier are required to be collected, customer will also have to surrender original R.C book and tax paper along with relevant transfer paper like Form 30, 31 duly signed. The damage vehicle will remain in the possession of the dealer and kept in safe place till disposal, so as to prevent further loss or damage. ITGI will make immediate arrangement for the disposal as per Company’s norms. No cashless facility is available for Total Loss claims, which will be settled directly with customer.
Ø Theft Claims: Cash less facility is also not available for theft claim.
o In case of theft ITGI shall appoint investigator to ascertain exact circumstances of loss.
o Theft of parts /accessories etc will be settled on production of documents without waiting for Final Police Investigation Report on the basis of First Information Report.
o In case of theft of entire vehicle, Final Investigation Report of Police is required for Claim settlement. However, on a/c payment could be considered on submission of all another paper (discretion of ITGI) where normal period for receiving Non –Traceable Report from the Police has elapsed and police have not file the final report.
o If the vehicle is not recovered before payment, ITGI will pay for damages to the vehicle which might have occurred while the vehicle is not his custody or control. In such cases survey at Police Station before taking delivery is essential. ITGI Office (SBU /CSC) or local IT IS representative at Dealer Point should be contacted foe the purpose.
o Original RC book and Tax papers along with along with relevant transfer paper like Form 30, 31 duly signed should be submitted to ITGI.
Conditions
This policy and the schedule shall be read together and any word or expression to which a specific meaning has been attached in any part of this policy or of the schedule shall bear the same meaning wherever it may appear.
1. Notice shall be given in writing to the company immediately upon the occurrence of any accidental loss or damage in the event of any claim and the insured shall give all such information and assistance as the company shall require. Every letter claim writ summons and/ or process or copy thereof shall be forwarded to the company immediately on the receipt by the insured. Notice shall also be given in writing to the company immediately the insured shall have knowledge of any impending prosecution, inquest or fatal injury in respect of any occurrence which may give rise to a claim under this policy. In case of theft or criminal act, which may be the subject of a claim under this policy, the insured shall give immediate notice to the police and cooperate with the company in securing the conviction of the offender.
2. No admission offer promise payment or indemnity shall be made or given by or on behalf of the insured without the written consent of the company which shall be entitled if it so desires to take over and conduct in the name of the insured the defence or settlement of any claim and the insured shall give all such information and assistance as the company may require.
3. At any time after happening of any event giving rise to a claim under section II of
this policy the company may pay to the insured the full amount of the company’s liability under the section and relinquish the conduct of any defence settlement or proceedings and the company shall not be responsible for any damage alleged to have been caused to the insured in consequence of any alleged action or amission of the company in connection with such defence settlement or proceedings or of the company relinquishing such conduct ; nor shall the company be liable for any costs or expenses whatsoever incurred by the insured or any claimant or other person after the company shall have relinguished such conduct.
4. The company may at its own option repair reinstate or replace the vehicle insured or part thereof and / or its accessories or may pay in cash the amount of the loss of the damage and the liability of the company shall not exceed:
a).For total loss/ constructive total loss of the vehicle – the Insured’s Declared Value (IDV) of the vehicle (including accessories thereon) as specified in the Schedule less the value of the wreck.
b).For partial losses, i.e. losses other than the Total Loss / Constructive Total Loss of the vehicle – actual and reasonable costs of repair and/ or replacement of parts lost/ damaged subject to depreciation as per limits specified.
5. The insured shall take all reasonable steps to safeguard the vehicle insured from loss or damage and to maintain it in efficient condition and the company shall have at all times free and full access to examine the vehicle insured or part thereof or any driver or any employee of the insured. In the event of any accident or breakdown, the vehicle insured shall not be left unattended without proper precautions being taken to prevent further damage or loss and if the vehicle insured be driven before the necessary repairs are effected any extension of damage or any further damage to the vehicle shall be entirely at the insured’s own risk.
6. The company may cancel the policy by sending seven days notice by recorded delivery to the insured at insured’s last known address and in such event will return to the insured the premium paid less the pro rata portion thereof for the period the policy has been in force or the policy may be cancelled at any time by the insured on seven day’s notice by recorded delivery and provided no claim has arisen during the currency of the policy, the insured shall be entitled to a return of premium at the Company’s Short Period rates for the period the policy has been in force. Return of the premium by the Company will be subject to the retention of the minimum premium of Rs 100 /- (or Rs 25 /- in respect of vehicles specifically designed / modified for use by blind/ handicapped mentally challenged persons) Where the ownership of the vehicle is transferred, the policy cannot be cancelled unless evidence that the vehicle is insured elsewhere is produced.
7. If any dispute or difference shall arise as to the quantum is to be paid under this policy (liability being otherwise admitted), such difference shall independent of all other questions be referred to the decisions of a sole arbitrator to be appointed in writing by the parties to the dispute or if they cannot agree upon a single arbitrator within 30 days of any party invoking arbitration, the same shall be referred to a panel of three arbitrators comprising two arbitrators one to be appointed by each of the parties to the dispute / difference , and a third arbitrator to be appointed by such two arbitrator who shall act as the presiding arbitrator and the arbitration shall be conducted in accordance with the provision of the Arbitration and Conciliation Act, 1996.
It is clearly agreed and understood that no difference or dispute shall be referable to Arbitration or hereinbefore provided, if the company has disputed or not accepted liability under or in respect of this policy.
It is hereby expressly stipulated and declared that it shall be condition precedent
To any right of action or suit upon this policy that the award by such arbitrators of
The amount of loss or damage shall be first obtained.
It is also hereby further expressly agreed and declared that if the company shall
Disclaim liability to the insured for any claim hereunder and such claim shall not, within twelve calendar months from the date of such disclaimer have been made the subject matter of the suit in he court of law, then the claim shall for all purposes been deemed to have been abandoned and shall not thereafter be recoverable hereunder.
8. The due observance and fulfillment of the terms, conditions and endorsements of this policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and the answers in the said proposal shall be conditions precedent to any liability of the company to make any payment under this policy.
9. If at the time of occurrence of an event that gives rise to any claim under this policy there is in existence any other insurance covering the same loss, damage or liability the company shall not be liable to pay or contribute more than its ratable proportion of any compensation, cost or expense.
10. In the event of the death of any sole insured, this policy will not immediately lapse but will remain valid for a period of three months from the date of the death of the insured or until the expiry of this policy (whichever Is earlier). During the said period legal heir(s) of the insured to whom the custody and the use of the motor vehicle passes may apply to have this policy transferred to the name(s) of the heir(s) or obtain a new insurance policy for the motor vehicle.
Where such legal heir(s) desire(s) to apply for the transfer of this policy or obtain a new policy for the vehicle such heir(s) should make an application to the company accordingly within the aforesaid period. All such applications should be accompanied by -:
a.) Death certificate in respect of the insured
b.) Proof of title to the vehicle
c.) Original policy.
NOTES
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ANNEXURES
1. Sample cover notes
. ITGI
. RELIANCE
2. Claim Form
. ITGI
. RELAINCE
3. Satisfaction Voucher
. ITGI
4. Renewal Letter
. ITGI
5. Endoresment Letter
. ITGI
. Reliance
6. Proposal Form
. ITGI – Private / Taxi
NOTES
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