INSURANCE A MANDATORY
Under the provisions of MV Act, 1988 section 147 the
insurance of vehicle is made mandatory during the operation of Motor vehicle in public
VALIDITY OF INSURANCE
The insurance policy period can have the period as the he
intend to insure his vehicle.
AMOUNT OF INSURANCE PREMIUM
The insurance premium is decided in accordance to the
value of vehicle, type of insurance, risks covered under insurance, type vehicle and use
of vehicle and period of insurance.
KNOW ABOUT VARIOUS KIND OF INSURANCE
The Motor Vehicle insurance are broadly classified in
three types :-
- Act only policy.
- Public Risk Policy or Third Party Policy.
- Comprehensive Policy.
ACT ONLY POLICY
In this kind policy the risk covered in only limited to
the victim upto a limit kunder the provisions motor vehicle Act, 1988.
The premium instalment of insurance is also the minimum
in this case.
PUBLIC RISK POLICY OR THIRD PARTY
This policy provides more protection to the third party
or victim in addition to the provision of M.V. Act.
Under this policy a wide range of risks are covered
including third party, natural calamities, vehicle repair costs, fire, roits ect.
The premium of this kind insurance is higher than the
The procedure of setting claims of insurance companies
are as under :-
- Notice of Loss
The insurer is required to intimate the insurance company about the loss at the earliest
after the loss.
- Claim Form
The claim form is submitted with the information of date of loss, cause of loss, extent of
loss etc. These forms are different for different kind of loss.
- Investigation and assessment
The claim form is investigated about its assessment of loss. In case of major claims the
professional surveyors asses the loss.
- Claim Documentation
The insurance company compiles all the forms and other relevents/documents are procured in
different types of claims from the concerned Agencies like Fire Brigade, Police,
Post Martem, Transport Authorities, Corners etc.
The claims are settled by the insurance company and
amount of claim is handed over to the applicant or the legal heirs. The arbitration if
required can be persued by the insurance company or the applicant.
When the payment is carried out then the
discharge vouchers are also required to be signed by the insurarer or
legal heir and the witness.