The method of Computing Premium Thursday, June 9 2005 22:49 Hrs (IST) - World Time -
The premium is computed differently by Insurance Companies for different types of vehicle.
For private cars:
Geographical area of use and cubic capacity
Value of the vehicle. Accessories are to be specified separately under electrical and non-electrical items.
For two-wheelers:
This is used for personal purposes only. Premium is calculated on cubic capacity and value of vehicle. Accessories are to be specified. Theft of accessories is not covered, unless the vehicle is stolen at the same time.
For commercial vehicles:
This is a vehicle used for hire and is classified into:
Goods-carrying commercial vehicle: In this case premium is calculated on carrying capacity -gross vehicle weight and value of the vehicle. Accessories extra, as specified.
Passenger-carrying commercial vehicle: In this case premium is calculated on carrying capacity of the vehicle, number of passengers and value of the vehicle. Accessories extra, as specified.
Third Party Insurance
Third Party Insurance is Liability to passengers carried in the vehicle for hire or reward - this means that as an owner of a taxi, bus or auto - rickshaw, you are insured against death or injury (caused by your vehicle) to the passengers
Third Party Insurance covers:
a) Personal Injury
b) Property damage
Insurance covers for Personal Injury includes:
1.Liability for death or injury to third parties: This means that you are insured against death or injury (caused by your vehicle) to pedestrians, occupant of other vehicles, and outsiders other than passengers, for unlimited amounts. Passengers of private vehicles and pillion riders are also deemed covered.
2.Liability to employees connected with operation of the vehicle: This means you are insured against death or injury (caused by your vehicle) to the vehicle's drivers, cleaners, conductors, coolies etc, employees used in the operation of the vehicle.
More Features Headlines
