IC 72 - MOTOR INSURANCE (Revised Edition: 2010) Objectives: This course

aims at acquainting the learner with Motor Insurance. It gives a detailed

understanding of how insurance principles and legal aspects are applied in Motor
Insurance. Different types of Motor insurance policies are dealt with in detail.
Documentation specific to Motor Policies, important clauses, claims procedures
and importance of data analysis are discussed to provide the learner with many of
the practical aspects of Motor insurance. Matters like Motor third party pool,
Tribunal and Governmental schemes and discussed. Where relevant, practices
abroad are also mentioned.
Contents:
Chapter 1: Introductory: History of Motor Insurance – application of basic
principles – types of motor vehicles – private cars, motor cycle/ scooters,
commercial vehicles, trailers, miscellaneous and specific types of vehicles – types
of policies.
Chapter 2: Legal Aspects 1: Motor Vehicles Act 1939 – Motor Vehicles Act 1988 –
Definitions – Necessity for compulsory third party insurance – Certificate of
Insurance – Liability – without fault – Compensation on structured formula basis –
Hit and Run Accidents –Solatium fund.
Chapter 3: Legal Aspects 2: Motor Accident Claims Tribunals –LokNayalaya–
JaldRahatYojana– International practices in third party insurance.
Chapter 4: Motor Policies 1: Types of Motor Policies – Coverage under Liability
Only and Package Policies – Policy conditions – Add on covers – Exclusions
Chapter 5: Motor Policies 2: Types of Motor Policies – Private Car and Two
Wheeler Policies – Commercial Vehicles – Motor Trade Policies; Scope of Standard
Form of Policies – Schedule – Exceptions – Conditions; Concept of Insured‘s
Declared Value .
Chapter 6: Motor Insurance Practice: Rules and Regulations – File and Use
approval – Erstwhile Tariff Guidelines – Policy Design and Rating concepts during
Tariff Regime – Scope for changes consequent to detariffing – practices abroad.
Chapter 7: Documents: Importance of documentation - Proposal Form -
Certificate of Insurance - Cover Note- Policy forms – Endorsements and Renewal
Notice.
Chapter 8: Underwriting: Underwriting and Rating considerations – the Vehicle –
the Usage – the Area of Operation – the Driver – past experience – the Cover;
Insurance and road safety – Importance of Statistical data.
Chapter 9: Claims 1: Own Damage Claims – Survey – Assessment – Settlement –
Claim Documentation and Procedures – Types of losses – Fraudulent OD Claims.
Chapter 10: Claims 2: Third Party Liability Claims – Procedural Aspects – Legal
Aspects – Negligence – Types of Claims – Death – Disability – Property; Legal System –
Tribunals – Courts – Knock for Knock Agreements – Fraudulent TP Claims.
Chapter 11: Motor Third Party Pool: The Pooling Concept – Objectives – Pooling
Procedure – Pool Administration.
Chapter 12: IT Applications in Motor Insurance: Importance of Statistical data in
motor insurance –Tariff Advisory Committee as statutory data repository – Data Inputs –
Underwriting Data – Claims Data – Reports.
References & Recommended Reading:
1. Law of Insurance Dr. Avtar Singh, 2010, ISBN : 8170126525, Jain Book Agency
2. Law of motor insurance, Merkin, Robert Stuart-Smith, Jeremy Q.C., Sweet and Maxwell,
2004,
3. Motor accidents: motor insurance claims and compensation, Sarkar, UtpalRanjan, Sodhi
Publications, 2005.
4. Motor accidents claims, Vijayraghavan, N., United Publishing Co., 2005
5. Fire and motor insurance, Ivamy,E.R.Hardy, Butterworths, 1978, 0 406 25252 1.
6. Motor Vehicles Act, 1988.