UNITED INDIA INSURANCE COMPANY LIMITED

NALANDA - CORPORATE LEARNING CENTRE, CHENNAI

MOTOR INSURANCE

SR IMPORTANT POINTS
1 U/s 146 of M V Act Motor Vehicle insurance is made obligatory for plying the vehicle in public places

2 Non-disclosure of a material fact shall make the Policy voidable

3 IMT 23 deals with Replacement of Parts excluded from IMT 21 by payment of Additional Premium @
15% on OD Premium and assessment for payment of the claim is 50% of the Assessed Loss.

4 Concession for laidup vehicle in garrage and not in use for more than 2 months
5 Motor reinsurance is normally done on Excess of loss treaties
6 Motor insurance can be made in the name of the registered owner except temporary subsitution

7 Sec 173 of MV Act relates to Appeal cases

8 U/s 170 of M V Act Insurer get the right to contest the TP claim on the grounds as collusion between
insured and claimant
9 Insurance liablity towards TP ceases when new owner shows another insurance Policy
10 A vintage car registered before 31.12.1940 has to be certified by Vintage and Classic Car Club of India

11 M V Act 1939 was amended in 1988 and 1994

12 M V Act 1994 was introduced mainly for the purpose of protecting loss arising out of the use / carrying
hazardous material
13 U/s Sec 149 (2) of MV Act an insurer can defend the liablity before MACT
14 Lower court order obtained u/s 170 is the most essential document required for filing an appeal before
the high court in Mact cases
15 10% Commission on the Premium is trump card for success of the TP Pool
16 In motor TP Claims if we do not take plea u/s 170 of MV Act, in lower court we can not go in appeal on
quantum
17 Forfeitious event which is SUDDEN, UNEXPECTED & UNINTENTIONAL is an accident in insurance term

18 Driving without valid DL exclusion under Motor Policy, which one does not appear under Geneal
Exclusion of the Policy
19 Under the Motor Package Policy towing charges, in r/o damaged vehicle includes the cost of Protecting
the vehicle, removing it to the nearest repairer and re-delivery to the insured

20 For going into appeal in the High Court the insurer has to deposit 50% the amount of award or Rs.
25000 whichever is less
21 Negligence, nuisance , defamation are subject matter of under TORT Liability
22 U/s 149 (2) and 170 of MV Act, insurer has defence
23 A MACT Case can be filed in Anywhere in India.
24 The Claim inquiry officer and Claim settlement commission are part of Solatium Fund in HIT & RUN
CASES
25 The time limit normally allowed for presenting the Claim petition u/s 166 is 6 months.
26 In case of TP Orphan claims provision for outstanding claims is to be made 1/3 of normal provision for
the first year. 50% in second year and after completion of third year 100%
27 Sec. III of Private cars relats to PA to Owner Driver.
28 Towing Charges Rs, 1500/- & Spot Repair Rs. 500/-for Private Cars
29 Company fitted LPG/CNG no loading + Rs. 60/- for Liability Risks and where separate fitting is done and
recorded in the RC then 4 % of the cost for Own Damage Risk + Rs. 60/- fo the Act Liability.

30 Premium for Electrical and Electronic item 4% of the value

31 Automobile Association Discount - 5%of the OD Premium maximum Rs. 200/- for Private car and Rs.
50/- for Two Wheeler.
32 Vintage Car Discount @ 25% on OD Premium
33 Discount for Anti Theft Device 2.5% or Rs. 500/- maximum if duly approved by ARAI and certified by
Automobile Association of India
34 Disount for Side Car is 25% of the OD Premium
35 Minimum Premium : Rs 100/- and for Handicap is Rs. 25/-
36 Vehicle used by Handicap and Mentally challenged a discount of 50% if the vehicle is registered as
Handicap Vehicle with RTO
37 Minimum Values for P.CAR i) Below 1000 cc Rs. 15000/-,b) Between 1000 to 1500 cc Rs. 20000/- c)
Above 1500 cc Rs. 30000/-
38 Minimum Value for M/Cycle Below 50cc Rs. 3000/- above 50 cc Rs. 5000/-
39 Vehicle used within the own premises No certifcate of Insurance to be issued and a disount in OD
premium of 33.33%
40 GR 40 and IMT 22 relates to Compulsary Deductable
41 Rallies OD Premium Rs. 60/- for first day and Rs. 30/- for each succeeding days
42 Rallies ACT Premium Rs. 25/- for the first day and Rs. 15/- for each succeeding days
43 Vehicle used for Racing - 300% Loading on OD TP Premium on Short Period Basis
44 Extension for Geogrophical Limits are Bangaladesh, Bhutan, Nepal, Pakistan, Srilanka and Maldives
with an additional premium for Rs. 500/- for Package and Rs. 100/- for other than Package Policies.
(IMT-1)
45 For Policies covering Fibre Glass Fuel Tanks for Private Car premium is Rs. 50/- and in Commercial
Veicle Rs. 100/- in OD Sec.
46 Loading for Imported Vehicles without Custom Duty is by 30% on OD premium.
47 Under Sec. 161(3) of MV Act - Hit and Run Compensation
48 Sec. 66 of MV Act - Necessity for Permit
49 Sec. 184 of MV Act - Dirving Dangerously.
50 IPC 279- Rash and Negligent Driving, 300 - Murder, Sec 304 - Culpabale Homicide, 304A - Causing
Death by Negligence, 337 - Causing Hurt (Simple Injury), 338 - Causing Grevious Injury

51 Criminal Procedure Code No. 154 - Cognigible offence recorded by Police in FIR, 172 - Diary of
Proceeding, 173 - Final Investigation Report,
52 Motor Trade Trade Risk Insurance Cover is given on the Basis of Named dirver Basis or Trade
Certificate Basis
53 Steam Driven Vehicles are excluded from Mot Trade Road Risk
54 Issue of Fire &/or Theft cover without Liability only cover is not permitted.
55 Limit of loss or damage to vehicles in excess of Rs. 25000/- OD premium to be increased by 1 % on
such excess value in Motor Trade Road Risk.
56 Compulsary Excess for Trade Certilficate is Rs. 50/-
57 Vehicle used for Diriving Tutions - Loading of 60% on OD Premium in all class of vehicles.
58 Compulsary excess in Misc. and Special Type of Veh. Class D Compulsary deductable is 0.5% of IDV or
Rs. 2000/- whichever is higher.
59 In Misc and Special Type of Veh. Class D Overturning risk can be covered with additional premium of
Rs. 0.50% on the IDV
60 Geographical Zones : Private Cars 2 zones Commercial Vehicles 3 Zones
Private Car Zone A: Ahmedabad,Bangalore,Chennai, Hydrabad,Kolkata, New Delhi, and Pune Zone B :
61 Rest of India
Commercial Vehicle Zone A) Chennai, Delhi,New Delhi, Kolkata, Mumbai Zone B) All Other State
62 Capitals Zone C) Rest of India
63 65 Endorsements are in IMT
64 cc is not a rating factor for commercial vehicle
65 Section 140/166 deals with the Act Liability case
66 Grace period for filing of an appeal before High Court in MACT is 90 days
67 A vehicle not road worthy can be covered under GR 45(Fire & Theft)
A Motor accident claim victim can file a case in MACT at the place of accident/Residence/Insurance
68 obtained
Transfer of ownership under liability only cover is deemed to have been transferred in favour of new
69 owners
The insured may authorise repairs for damages covered under the policy where estimate does not
70 exceed Rs.500/-
71 Maximum discount on IMT is 20%
72 Time limit for presenting claim petition under sec.166 is 6 months
73 Red lining in Motor Insurance means compliance of notice period
74 WC Claims under Motor Policies can be appealed only after satisfaction of the award
It is important to take a plea under sec 170 of MV Act in lower court before we go on appeal.
75
Insurer has to use standerd Proposal form for liability only cover as per IRDA circular dt.June 2010
76
Grace period for appeal is 90 days / No appeal in High Court if MACT compensates less than 10000/-
77
78 GR 4 for extension of geographical area and GR 31 for concession for laid up vehicles
79 Motor Cover note for new vehicles and validity period is 60 days
The compansation payable under No fault liability/ Hit and Run is 50,000/- & 25,000/- 25,000/12500
80 for death and injury respectively
Depriciation applicable for Fibre/Rubber/Glass componants is 30% /50% /Nil in case of partial loss
81 settlement
82 Over turning risk - Not for
83 Non disclosure of material fact shall make the policy void
84 IDV for vehicles aged more than 5 years is as per Market value
85 Motor reinsurance is normally done on 'Excess of loss' basis
86 Sunset clause refers to NCB
Knock for knock agreement refers rule of subrogation/principal of indemnity is applied through
87 application of depreciation.
Policy excess - Voluntary excess under OD section is applicable for private car/Motor Cycle and
88 compulsory excess is applicable to all commercial vehicles
89 Section 161 (3) of MVA - Hit & Run - 163A
90 Amount of compensation payable in case of grievious injury is Rs.25,000/-
91 No Long term Motor Policy
92 Owner of goods travelling along in goods vehicle will be treated as gratuitous passenger
93 No fault liablility - 140 U/S