Motor Package Policy

This policy covers all types of vehicles plying on public roads such as:-
As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance.

In this scheme, 2 types of covers are available:
Liability Only Policy : This covers third party liability for bodily injury liability and / or death and property damage. Personal Accident cover for Owner-driver is also included.
Package Policy : This cover loss or damage to the vehicle insured in addition to Liability Only Policy. No claim discounts are available on renewal of policy, ranging from 20% to 50%, depending upon the type of vehicle and the number of years for which no claim has been made.

Scope

Liability Only Policy:
The policy covers the vehicle owner's legal liability to pay compensation for:
• Death or bodily injury to a third-party person.
• Damage to third party property.
Liability is covered for an unlimited amount in respect of death or injury and damage to third party property for INR 7.5 lacs under Commercial vehicle and private and INR 1 lakh for Scooters / Motor Cycles.

Rating factors:

Rating depends upon the following factors:
1. IDV
2. Cubic capacity
3. Geographical zone
4. Age of the vehicle
5. GVW of in case of commercial vehicles
6. Add on Covers

Add on covers

The policy can be extended to cover the following risks on payment of additional premium:
1. Loss or damage to accessories fitted in the vehicle such as stereos, fans, air-conditioners etc.
2. Personal accident cover under private car policies for:
o Passengers
o Paid driver
3. Legal liability to employees.
4. Legal liability to non-fare paying passengers in commercial vehicles.

Who can take the policy?

Any vehicle owner whose vehicle is registered in his/her name with the Regional Transport Authority in India. How to select the sum insured? : IDV stands for Insured's declared Value and represents the sum insured of a vehicle in a Motor Policy
In case of theft of vehicle or if the vehicle is totally damaged and beyond repairs in an accident, the claim amount payable will be determined on the basis of the IDV. The IDV of the vehicle is to be fixed on the basis of manufacturer's listed selling price of the brand and model of the vehicle proposed for insurance at the commencement of insurance / renewal and adjusted for depreciation as per schedule.

IDV of vehicle which is 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 insurer and insured.

How to claim?

In the event of an incident giving rise to a claim under the policy, the following steps should be taken In case of accidental damage to the vehicle:
1. Immediate intimation to the nearest office, which will issue a Claim Form.
2. Claim Form duly filled in to be submitted along with copy of Registration Certificate and driving license of the driver of the vehicle at the time of accident as also estimate of repairs.
3. Vehicle will be surveyed by a Surveyor, appointed by the insurance company, who shall submit his report to the company. In case of a major damage to the vehicle, a spot survey, at the site of accident, would also be arranged by the company.
4. Final bills/cash memos are to be submitted duly signed by the insured.
5. Salvage of the damaged parts may be required to be deposited with the insurance company after approval of the claim.

In case of theft of the vehicle:

1. Lodge an F.I.R. with the police immediately.
2. Inform the policy issuing office with a copy of FIR.
3. Submit the Final Police Report as soon as it is received.
4. Extend full cooperation to the surveyor and/or investigator appointed by the company.
5. After approval of the claim by the company, get the Registration Certificate transferred in the name of the company, hand over the keys of the vehicle, submit a letter of Subrogation and Indemnity on stamp paper duly notarized.

In case of liability claim:

1. Inform insurance company immediately of any incident likely to give rise to liability claim.
2. On receipt of summons from Court, the same should be sent to the company immediately.
3. Claim Form duly filled in along-with copies of Registration Certificate, Diving License, FIR are to be submitted.

1. What are the policies available for covering the vehicles?
There are two policies: Motor Liability Only Policy and Motor Package Policy.

2. Is it mandatory to have insurance for plying vehicles on the public place?
As per Motor Vehicle Act, it is mandatory to have Motor Liability only Policy for covering Third Party.

3. What is covered under Liability Only Policy?
Owners' liability towards Third Party Personal Injury and Property Damage.

4. What does Motor Package Policy Cover?
This type of policy covers all the risks covered under Motor Liability policy plus loss or damage caused to the vehicle due to: Accident, Fire, Explosion, Self Ignition, Lighting, Burglary, House Breaking, Theft, Riots & Strikes, Earthquakes, Flood, Typhoon, Hurricane, Storm, Cyclones, Malicious Acts, Terrorism, Transit by rail/road, air and waterways and also include towing charges.

5. What are the exclusions under Package Policy?
Damage caused due to: Driver being under intoxication, Vehicle being driven by a person not holding an effective valid license, Damage to tyres (unless the vehicle is damaged at the same time),Wear and tear and mechanical breakdown damages.

6. What are documents required at the time of claim?
Copy of claim intimation given to insurer with xerox copy of policy and premium receipt, duly filled Claim Form, Driving License, Registration Certificate of Vehicle, Estimate of repairs from repairer and stamped receipt, Bills and Cash Memo of repairs, verification of road tax, Police Panchanama / FIR, Permit and Fitness Certificate and any other documents deem fit for the situation.

7. Can the amount be paid directly to the repairer?
Yes - In case of Approved Garage
No - In case of any other Garage

8. What is the amount I have to bear?
Compulsory excess, Reasonable value of salvage if not surrendered to insurer and depreciation.

9. What is 'No Claim Bonus'?
It is a special discount given on premium for every claim-free year.

10. What is Solatium Fund Scheme?
It is the Scheme formed by the Central Govt. to provide compensation to the victims of 'Hit and Run' motor accident. The amount of compensation is INR 25,000- in the event of death and INR 12,500- for grievous hurt.