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MOTOR INSURANCE POLICY:
According to Motor Vehicles Act 1939 the owners of vehicles must insure their vehicles
against liability to third party for death or loss injury and damage to third party
property.
Two types of covers are granted:
a) Act Liability policy/public Liability :-This policy
provides indemnity to the insured against legal liability for claims by the third party in
respect of accidental personal injury &/or damage to any property of third party
property covered by the insured vehicles in public place as is necessary to meet the
requirements of section 95 of the Motor Vehicles Act 1939. Increased limit of liability is
also provided in respect of public liability policy.
b) Comprehensive Insurance Policy:- This policy provides cover
against loss or damage to the insured vehicle by accidental external means or malicious
act, Fire, External Explosion, Lightning Self ignition, Burglary, Housebreaking and Theft.
Also whilst in transit by Road, Rail inland waterway, lift, elevator or air. Subject to
the limitations mentioned in the policy and liability to public risks including Act
liability.
Rates & terms of motor policy are governed by motor tariff and it is binding on
the insurers to follow such rates & terms. For rating purpose, the vehicles have been
classified into three classes according to their use viz. Private Car. Motor Cycle and
Commercial Vehicles. Premium is calculated on cubic capacity and seating capacity in
respect of Private Car, Motor Cycle, while premium in respect of commercial vehicles is
calculated on tonnage capacity of the vehicles.
ENGINEERING INSURANCE
Company also underwrites following special types
Engineering insurance :-
1. Erection All Risks;
2. Marine-cum-Erection All Risk;
3. Contractor All Risks;
4. Boiler Insurance;
5. Deterioration of Stock
6. Machinery Breakdown
7. Computer and Electronic Data Processing Machineries.
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