GENERAL REGULATIONS:
Proposal Forms:
A duly completed proposal form is the basis of insurance. For change IDV at each renewal, however, fresh proposal is not necessary. Such changes may be advised by the insured to the insurer by a letter signed by the insured/insured’s authorized signatory (for companies/body corporate) and sent to the insurer by recorded delivery. In case of change of insurer, fresh proposal is required to be submitted to the new insurer. The insurers may include additional questions in the proposal from for their information and use.
TYPES OF POLICIES:
There are two types of policies:
- Liability Only Policy: This covers Third Party Liability for bodily injury and /or death and property damage. Personal Accident for Owner Driver is also included.
- Package Policy: This covers loss or damage to the vehicle insured (O.D) in addition to (1) above.
VALUED POLICIES:
Under an agreed Value Policy a specified sum agreed as the insured value of the vehicle is paid as compensation in case of Total Loss/ constructive Total Loss of the Vehicle without any deduction for depreciation. It is not permitted to issue Agreed Value Policies under this tariff expecting for policies covering vintage cars. For such policies, Endorsement IMT-2 is to be used.
INSURED’S DECLARED VALUE (IDV):
The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘SUM INSURED’ for the purpose of this tariff and it will be fixed at the commencement of each policy period for each insured vehicle. The IDV of the vehicle is to be fixed on the basis of manufacturer’s listed selling price of the brand and model as the vehicle proposed for insurance at the commencement of insurance/renewal and adjusted for depreciation (as per schedule specified below) The IDV of the side car(s) and /or accessories, if any, fitted to the vehicle but not included in the manufacturers ‘s listed selling price of the vehicle is also likewise to be fixed. The schedule of age-wise depreciation as shown below is applicable for the purposed of Total Loss/Constructive Total Loss (TL/CTL)claims only. A vehicle will be considered to be a CTL, where the aggregate cost of retrieval and /or repair of the vehicle subject to terms and conditions of the policy exceed 75% of the IDV.
Schedule of Depreciation for arriving at IDV
| AGE OF THE VEHICLE | % OF DEPRECIATION FOR FIXING IDV |
|---|---|
| Not exceeding 6 months | 5% |
| Exceeding 6 months but not exceeding 1year | 15% |
| Exceeding 1year but not exceeding 2 years | 20% |
| Exceeding 2year but not exceeding 3 years | 30% |
| Exceeding 3years but not exceeding 4 years | 40% |
| Exceeding 4 years but not exceeding 5 years | 50% |
Note: IDV of vehicles beyond 5 years of age and of obsolete models of the vehicles(i.e models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between the insurer and the insured.For the purpose TL/CTL claim settlement, this IDV will not change during the currency of the policy period in question. It is clearly understood that the liability of the insurer shall in no case exceed the IDV as specified in the policy schedule less the value of the wreck, in ‘as is where is’ condition.
Depreciation on parts of partial loss claims
The following rates of depreciation shall apply for replacement of parts for partial loss claims in respect of all categories of vehicles/accessories.
- Rate of depreciation for all rubber/nylon/plastic parts, tyres, tubes, batteries and air bags. - 50%
- Rate of depreciation for all fiber glass components - 30%
- Rate of depreciation for all parts made of glass - Nil
Rate of depreciation for all other parts including wooden parts is as per the following schedule
| Age of the vehicle | % of Depreciation for fixing IDV |
|---|---|
| Not exceeding 6 months | Nil |
| Exceeding 6 months but not exceeding 1year | 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% |
PERIOD OF INSURANCE:
Unless specifically stated otherwise, premiums quoted in the Schedules under various Sections of Motor tariff are the premiums payable on policies issued or renewed for a period of twelve months. No policy is permitted to be issued or renewed for any period of longer than twelve months. It shall, however, be permissible to extend the period of insurance under the policy of any period less than twelve months, for the purpose of arriving at a particular renewal date or for any other reasons convenient to the insured, by payment of extra premium calculated on pro-rate basis provided such policies are renewed with the same insurer immediately after the expiry of such an extension. All such extension will require attachment of the following Warranty to the policy.
In consideration of the premium for this extension being calculated at a pro-rate proportion of the annual premium, it is hereby declared and agreed by the insured that upon expiry of this extension, this policy shall be renewed for a period of twelve months, failing which the difference between the extension premium now paid on pro-rate basis and the premium at short period rate shall become payable by the insured.
Premium Rates for short period cover:
Short period Cover/Renewal may be granted for period less than twelve months at the following short period scale:
| Period | % of Annual Premium Rate |
|---|---|
| Not exceeding 1 month | 20% |
| Exceeding 1 month but not exceeding 2 months | 30% |
| Exceeding 2 months but not exceeding 3 months | 40% |
| Exceeding 3 months but not exceeding 4 months | 50% |
| Exceeding 4 months but not exceeding 5 months | 60% |
| Exceeding 5 months but not exceeding 6 months | 70% |
| Exceeding 6 months but not exceeding 7 months | 80% |
| Exceeding 7 months but not exceeding 8 months | 90% |
| Exceeding 8 months | Full annual premium/ rate |
Payment of Premium:
The full premium is required to be collected before commencement of cover. It is not permissible to collect premium in installments.
Minimum Premium:
The minimum premium applicable for vehicles specially designed or modified for use of the blind, handicapped and mentally challenged persons will be Rs.25/- per vehicle. For all other vehicles, the applicable minimum premium per vehicle will be Rs.100/-.
Transfers:
On transfer of ownership, the Liability Only cover, under a liability Only policy or under a Package policy, is deemed to have been transferred in favor of the person to whom the motor vehicle is transferred with effect from the date of transfer.
The transferee shall apply within fourteen days from the date of transfer in writing under recorded delivery to the insurer who has insured the vehicle. With the details of the registration of the Vehicle, the date of transfer of the vehicle, the previous owner of the vehicle and the number and date of the insurance policy so that the insurer may make the necessary changes in his record and issues fresh certificate of insurance.
In case of package Policies, transfer of the “Own Damage” section of the policy in favor of the transferee, shall be made by the insurer only on receipt of a specific request from the transferee shall be made by insurer only on receipt of a specific request from the transferee along with consent of the transferror. If the transferee is not entitled to the benefit of the No Claim Bonus (NCB) show on the policy, or is entitled to a lesser percentage of NCB than that existing in the policy, recovery of the difference between the transferee’s entitlement, if any, and that shown on the policy shall be made before effecting the transfer. A fresh proposal From duly completed is to be obtained from the transferee in respect of both Liability only and package Policies.
Transfer of package policy in the name of the transferee can be done only on getting acceptable evidence of sale and a fresh proposal form duly filled and signed. The old certificate of insurance for the vehicle, is required to be surrendered and a fee of Rs.50/- is to be collected for issue of fresh certificate in the name of the transferee. If for any reason the old certificate of insurance cannot be surrendered, a proper declaration to that effect is to be taken from the transferee before a new certificate of insurance is issued.
Double Insurance:
When two policies are in existence on the same vehicle with identical cover, one of the policies may be canceled. Where one of the policies commences a date later than the other policy, the policy commencing later is to be canceled by the insurer concerned. If a vehicle is insured at any time with two different offices of the same insurer, 100% refund of premium of one policy may be allowed by issued by two different insurers, policy commencing later is to be canceled by the insurer concerned and pro-rata refund of premium there on is to be allowed . If however, due to requirements of Banks/Financial Institutions, intimated to the insurer in writing, the earlier dated policy is required to be canceled then refund of premium is to be allowed after retaining premium at short period scale for the period the policy was in force prior to cancellation.
In all such eventualities, the minimum premium as specified in the tariff is to be retained. In either case, no refund of premium can be allowed for such cancellation if any claim has arisen on either of the policies during the period when both the policies were in operation, but prior to cancellation of one of the policies.
No Claim Bonus:
- No claim Bonus (NCB) can be earned only in the own Damages section of policies covering all classes of vehicles but not on Motor trade Policy (road Transit Risk/Road Risk/ Internal Risks) and policies which cover only Fire and/ or Theft Risks. For policies covering Liability with fire and only fire and /or theft Risks, 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.
- No claim Bonus wherever applicable, will be as per the following table:
All types of Vehicles % of Discount on
Own Damage PremiumNo claim made or pending during the
Preceding full year of insurance20% No claim made or pending during the
preceding 2 consecutive years of insurance25% No claim made or pending during the
preceding 3 consecutive years of insurance35% No claim made or pending during the
preceding 4 consecutive years of insurance45% No claim made or pending during the
preceding 5 consecutive years of insurance50%
Sunset clause:
If at the renewal falling due any time between 1st July 2002 and 30th June 2003, both day inclusive (after completion of the full policy period of 12 months) an insured becomes 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 of the NCB will revert to ‘Nil’ at the renewal. Thereafter, NCB if any earned, will be in terms of the above table.
Compulsory PA Cover for Owner-Driver:
Compulsory Personal Accident cover shall be applicable under both Liability only and package policies. The owner of insured vehicle holding an effective driving license is termed as Owner Driver for the purposes of this section Cover is provided to the Owner- Driver whilst driving the vehicle including mounting into / dismounting from or traveling in the insured vehicle as a co-driver.
N.B: this provision deals with personal Accident cover and only registered owner in person is entitled to the compulsory cover where he /she holds an effective driving license. Hence compulsory PA cover cannot be granted where a vehicle is owned by a company a partnership firm or a similar body corporate or where he owner-driver does not hold an effective driving license. In all such cases, compulsory PA cover cannot be granted, the additional premium for the compulsory, PA cover for the owner-driver should not be charged and the compulsory PA cover provision in the policy should also be deleted . Where the owner-driver own more than one vehicle compulsory PA cover can be granted for only one vehicle as opted by him/her.
Scope of P.A. cover
| Sl.No | Types of vehicle | Capital Sum Assured | Premium |
|---|---|---|---|
| 1. | Two-wheeler | Rs.1Lakh | Rs. 50-00 |
| 2. | Private Cars | Rs.2Lakhs | Rs.100-00 |
| 3. | Commercial Vehicles | Rs.2Lakhs | Rs.100-00 |
Benefits:
Death 100% CSI, Loss of two limbs or Sights of both eyes or one limb and one eye- 100% Loss of one limb or one eye -50% Permanent total disablement 100%.
Use of CNG/LPG fuel:
- In case of vehicle fitted with bi-fuel system such as petrol /Diesel and CNG/LPG permitted by the concerned RTA , the CNG/LPG kit fitted to the vehicle is to insured separately at an additional premium @ 4% on the value of such kit to be specific ally declared by the insured in the proposal form and or in a letter forming part of the proposal form. Endorsement IMT-25 is to be used.
- Where the vehicle is fitted with only CNG/LPG engine or where the vehicle is fitted with bi-fuel system referred above but the value of CNG/ LPG Kit is not separately available. 5% extra on OD premium to be charged.
