Motor Insurance

MOTOR
INSURANCE
HISTORY:
Motor insurance is originated in U.K. where the first motor insurance policy was
introduced into England In 1894 to third part liabilities. And in 1899 the policy was
extended to cover the accidental damage similar to known as comprehensive policy.
In India the Motor vehicle insurance was passed in 1939 and in 1946 the third part
insurance was introduced compulsory.
MEANING:
Motor insurance policy is a unique insurance policy meant for vehicle owners to
protect them from incurring any financial losses that may arise due to damage or
theft of the vehicle. The law mandates that every owner of a motor vehicle must have
one motor insurance policy.
NEEDS FOR THE MOTOR INSURANCE:
Footpaths:
As footpaths are encroached by hawkers, pedestrians have a tough time dodging

between vehicles to reach tother end of the road. Large potholes and manholes are
a common sight and during the monsoon the situating get only worse causing
untold damage to your vehicle.
Theft:
Cases of stolen cars are on the rise. Experts in stealing cars are well aware of the
loopholes that and accordingly have also been successful in manipulating with the
chassis number of vehicles in order that they are not traced.
Reckless Driving:
Besides, rash driving by youngsters is another of the dangerous realities that you
should consider. Majority of the youngsters drive recklessly caring little for the
law, causing serious accidents resulting in loss of life or limb.
Drunken Driving:
Drunken driving is another very common feature. Be it a car, a two-wheeler, or

even a truck, drunken driving one of the major reasons for increase in accidents.
Though drunken driving is a punishable offence the penalty has hardly proved to
be a deterrent.
Fire:
Other than these there is also a danger of fire or theft of vehicle. Therefore, vehicle
insurance under such unsafe conditions is a must not only to cover risks towards the
owner and the vehicle but also to cover the financial liability that may arise from
an accident in which the other party is injured. The cost of repairs that you would
have to pay to the other party in case of an accident may be exorbitant. Besides if
the accident involves hospitalization too, the expenses can go through the roof. It
would be a great burden if all these costs are borne by the individual.
Law Mandate:
As per the Motor Vehicles Act, having third-party insurance is mandatory and
should not be overlooked. In case anyone is found to be driving the vehicle without
this insurance should be ready for remedial legal actions.
TYPES OF MOTOR INSURANCE:
All India Motor Tariff governs motor insurance business in India. According to the
Tariff, all classes of vehicles use two types of Policy Forms. They are Form A and
Form B.
Form A, or what is commonly known as Act Policy and covers Act Liability,
which is a compulsory requirement of the Motor Vehicles Act. No vehicle can be
used without this minimum insurance cover. Use without such insurance is a penal
offence.
The following liabilities can be covered in this policy:
 Unlimited liability towards Third Party bodily injury.

 Liability towards Third Party Property Damage to the extent of Rs. 6000/- only
 Unlimited liability towards bodily injury of passengers of the vehicle.
 Liability towards employees of the owner of the vehicle while travelling in or
using it, against bodily injury, to the extent required under the Workmen's
Compensation Act.
Form B, or what is commonly known as Comprehensive Policy, is an optional
cover, which takes care of the following additional losses and liabilities:
 Loss or damage to the vehicle and its accessories and extra fittings, protection
and removal costs, and owing disabled vehicles (only for commercial vehicles).
 Liability towards Third Party Property Damage, in excess of Rs. 6000/-.
 Liability towards employees under Common Law and Fatal Accidents Act, over
and above the liability under Workmen's Compensation Act.
 Personal Accident Benefits for the owner, passengers and employees.
The above losses or liabilities can be separately covered in conjunction with the
liabilities covered under the Act Policy, by taking a Comprehensive Policy paying
an additional premium.
THANK YOU

Motor Insurance

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MOTOR

As footpaths are encroached by hawkers, pedestrians have a tough time dodging

Drunken driving is another very common feature. Be it a car, a two-wheeler, or

 Unlimited liability towards Third Party bodily injury.

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