7. Right to Inspect

Right to Inspect – No website or a blog that deals with the motor insurance policy has talked of the issue which is being said here. An extract from the Motor Policy Document:“The insured shall take all reasonable steps to safeguard the vehicle insured from loss or damage and maintain it in efficient condition.”Further, “The company shall have at all times free and full access to examine the vehicle insured or any part thereof or any driver or employee of the insured…” This means the following:

1) The insurance company shall have, it is not an obligation on the part of the insured, at all times free and full access to examine the vehicle. In other words, the company is only informing us that at any point of time, whenever the company chooses, it has free and full access to the vehicle. This means, if the company were to decide that at 2am it wants to examine the vehicle, it can and do so. It need not have owner’s permission. It has free and full access. The owner has no say. If the insurance company were to decide to examine the vehicle insured, then it is an obligation on the part of the insured to show the vehicle irrespective of time, place, availability or whatever.

2) The company also has free and full access to examine a part of the vehicle. Thus, it can examine the tyres, for example. If it wants to examine the engine, it can.

3) It can also examine,due to free and full access clause,any driver driving the vehicle.

4) It has full and free access to examine any employee of the insured.

What will it examine with free and full access at all time? Ithas to examine the following:

1) Whether the insured is taking all reasonable steps to safeguard the vehicle from loss or damage.

2) Whether the insured is maintaining the vehicle in an efficient condition.

3) Moreover, it can also examine a part of the vehicle or a driver or the employee of the insured to decide whether the vehicle is maintained in an efficient condition or not.

The policy document does not define phrases like – reasonable steps, safeguarding the vehicle and efficient condition. I do not think the insurer thought it necessary to define!

What will happen if you refuse to give free and full access?

1. The company can cancel the policy.

2. No refund of the balance premium on the grounds of misrepresentation, fraud, non-closure of material facts or non-cooperation of the insured – none of these terms are defined or explained!

3. If the policyholder is refusing to cooperate with the insurance company, the policy will be cancelled ab initio(means from the beginning) basis. Further, the premiums paid by the insured will not be returned. They will be forfeited. If there is any claim, it will not be paid.

Please be aware these policy terms are never openly discussed by the insurers, but written in the policy.

On the other hand, if the insured i.e., the policyholder wants to cancel the policy what will happen? If there is no claim on the policy, then the insurance company will return premium according to the short period notice rates. Short period notice is: if you want to cancel the policy after 6 months then the insurance company will return only 20% of the premium paid. 80% premium it will keep to itself!! If you want to cancel the policy after 8 months, the insurance company will not refund the premium. Understand how clever the insurance companies are.

Let us say a vehicle met with an accident. There is no definition of vehicle or car in the policy document. The insurance company is not asking about your safety! Generally, if you have any injuries, first get yourself treated at the nearest hospital. On the contrary, the insurance company is mandating not to leave the car unattended. For them property is more important…not our idiotic life!

The primary duty is to stay with the car injured and take proper precautions to prevent further damage or loss to the vehicle. After that if you have time and still alive then attend to injuries. Are you understanding my point sir? The insurers are of the mind that if a life is lost, another life is born…in India lives are cheap. The only place you find value to life is the Indian Constitution…fantastic lip service. Property if lost, is lost forever. For an insurer property is more important. The insurers may cry foul at this interpretation. But the present policy wording gives only this interpretation.

You met with an accident. Since you cannot leave the car unattended and due to the contractual obligations, you decide, in spite of injuries, to drive slowly to the nearest garage as you are in no man’s land. Somehow you manage. Insurance companies have no objection in your driving the car, but they have serious objection if the vehicle is further damaged.For any further damage, the policyholder alone is responsible. I am not talking of the injuries…but the vehicle!

These policy conditions are scarce. By making it compulsory, (the M.V. Act 1989) with the stupid terms and conditions, the Government of India too is undermining the importance of lie.

In conclusion I say that I am satisfied because there is some value to human life on paper. From the above interpretation, it is a foregone conclusion that policyholders are mentally less developed, and I am a policyholder.

---