Motor Insurance Policy

This policy covers all types of vehicles on public roads such as: Scooters & Motorcycles Private cars All types of commercial vehicles Motor Trade (vehicles in show rooms and garages)

MOTOR INSURANCE UNDERWRITING

Mr. Siddharth Menon has recently purchased a new

Honda civic in Chennai with a loan from Indian bank, Egmore branch, Chennai. He wants to arrange for a Motor package policy through The New India assurance company Ltd. I. Explain the covers offered in New Indias motor package insurance in detail. II. Explain how the insurance company will take care of the bank interest

Covers offered New India motor package insurance

As per the Motor Vehicles Act, 1988 it is mandatory for every

owner of a vehicle plying on public roads, to take an insurance policy The owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property A Certificate of Insurance must be carried in the vehicle as a proof of such insurance.

Two types of covers are available: Liability only policy Package policy

Liability Only policies

The policy covers the vehicle owner's legal liability to pay compensation for: Death or bodily injury to a third party person. Damage to third party property

Package Policy
In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to: Fire, explosion, self-ignition or lightning. Burglary, housebreaking or theft. Riot and Strike. Malicious Act. Terrorist Act. Earthquake (Fire and Shock) Damage. Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm. Accidental external means. Whilst in transit by road, inland waterway, lift, or or air. By landslide/Rockslide

Add on covers
The policy can be extended to cover the following risks on payment of additional premium: Loss or damage to accessories fitted in the vehicle such as stereos, fans, air-conditioners etc. Personal accident cover under private car policies for:
passengers paid driver

Legal liability to employees. Legal liability to non-fare paying passengers in

commercial vehicles.

Bankers Indemnity Policy

Package policy designed specially to cover the risks

related to banking sector. A single policy covering all branches in India of the particular bank.

 Loan amount-1300000
Interest rate -11.25% Loan repayment period-5years

Bibliography
www.newindia.co.in