Motor insurance is governed by Motor Tariff which came into operation from January 1, 2006 and it provides detailed terms and condition ,premium rates as well as policy forms, proposal forms, endorsements for insurance of different classes of vehicles.. Normally, Motor insurance policy covers against loss or damage to the motor vehicles and/or its accessories whilst they are on land or in transit:
- By accidental external means
- By fire, external explosion, self ignition or lightening, or frost, snowfall or earthquake, flood or inundation or landslide, rockslide or soil erosion or storm (hail stone) or Burglary or theft.
- Whiles in transit by road/rail inland lift or elevator
- Third Party Liability
• Consequential loss
• Mechanical or electrical breakdown by general wear and tear, failure or breakage
• Damage to tyres unless such vehicle is damaged at the same time of accident
LIMITATION AS TO USE
Driving under the influence of liquor or drugs is not covered.
The person driving the vehicle should have a valid and effective driving license on the date of accident.
TYPES OF MOTOR VEHICLES
Motor rates are based on types of vehicles, their cubic capacity/carrying capacity. For this purpose, tariff divides motor vehicles under various categories which are as under:
• Commercial Vehicle
• Private Vehicle
• Motorcycle (Two Wheeler)
• Miscellaneous Vehicle
• There are further sub classifications of these vehicles under various categories.