What is renewal?

13. Conditions for Renewal of the Contract

Under the Conditions for the Renewal of Contract, it is mentioned whether the Motor Insurance policy will be renewed or not and if yes, what is renewal procedure. Generally, Motor Insurance policies are issued for one-year duration, though we do have policies for 3 years. In either case the policy renewal conditions will apply. What […]

Read More

While the compulsory deductible does not affect car premium, voluntary deductible has a direct impact on the same.

12. Compulsory and Voluntary Deductible

These deductibles i.e., Compulsory Deductible and Voluntary Deductible are stated in IMT 22 and IMT 22A. You may be wondering what is this IMT. It stands for India Motor Tariff. I will discuss about IMT later. The word deductible as described in the policy conditions in this manner: The Company shall not be liable for […]

Read More

Reasonable care

8. What is Reasonable Care?

Section 3 of the Private Car Package Policy general conditions talks about reasonable care. “The insured shall take all reasonable steps to safeguard the vehicle insured from loss or damage to maintain it in efficient condition”. What are the reasonable steps to safeguard the vehicle? What maybe reasonable to me may not reasonable to you…on […]

Read More

Automobile Association of India

5. Are you a member of Automobile Association of India?

I am dealing with the other question…’Are you a member of Automobile Association of India?’ If yes, please submit a membership copy. Firstly, there is no such association called Automobile Association of India. When I queried on my computer for the website of Automobile Association of India, I was directed to a website called Automobile […]

Read More

Total Loss & Constructive Total Loss

3. Total Loss & Constructive Total Loss

In page 2 of the Motor Insurance application, these magic words are found – Total Loss and Constructive Total Loss. The wording is as follows: “The schedule of age-wise depreciation as shown alongside is applicable for the purpose of Total Loss/Constructive Total Loss (TL/CTL) claims only. They have given age-wise depreciation schedule also in the […]

Read More