Why Motor Insurance is Important

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MOTOR INSURANCE
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- IT ACCOUNTS FOR MORE THAN 45 OF THE TOTAL
GENERAL INSURANCE PREMIUM INCOME IN INDIA. - IN
THE YEAR ENDING 2009, TOTAL NON-LIFE PREMIUM OF
THE INDUSTRY WAS ABOUT 28,000 CRORES OUT OF WHICH
MOTOR INSURANCE ACCOUNTED FOR ABOUT 13,000
CRORES.- HOWEVER MOTOR BUSINESS WAS ONLY 25
CRORES AT THE TIME OF NATIONALIZATION.

• INTRODUCTION

GLOBALLY MOTOR INSURANCE IS THE BIGGEST AND
FASTEST GROWING GENERAL INSURANCE PORTFOLIO AND
INDIA IS NO EXCEPTION TO IT.
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1. 1939 MOTOR VEHICLES ACT (MVA) PASSED.2.
COMPULSORY 3RD PARTY INSURANCE INTRODUCED ON 1ST
JULY, 1946.3. PRACTICE IN INDIA FOLLOWS THAT OF
U.K. MARKET.4. GOVERNED BY A TARIFFWITHDRAWN
IN U.K.MVA 1988, REPLACED THE MVA OF 1939
EFFECTIVE FROM JULY 1ST 1989.

• MOTOR INSURANCE HISTORY - INDIA

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WHAT IS MOTOR INSURANCE

• MOTOR INSURANCE IS A COMBINATION OF TWO WORD
• I.E.MOTORINSURANCE
• MOTOR UNDER THE MOTER VEHICLE ACT IS A
  SELF-PROPELLED VEHICLE.
• INSURANCE WE ALREADY KNOW IS PROTECTION AGAINST
  ANY UNFORESEEN RISK.

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MOTOR INSURANCE TYPE
TYPE
COMPREHENSIVE
ZERO DEPRECIATIOM
THIRD PARTY
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1. BODILY INJURIES TO YOURSELF OR OTHER .
2.LOST WAGE DUE TO INJURY.3.BENEFITS TO
SURVIVORS WHEN AN ACCIDENT RESULTS IN DEATH. 4.
Lawsuits brought against you as the result of an
accident.5.repairs made to your car due to
damage caused in an accident.

• MOTOR INSURANCE BENEFITS

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1. THE cover level of motor insurance can be the
insured PART, THE INSURED VEHICLE , THIRD PARTIES
(CAR AND PEOPLE). 2. THE PREMIUM OF THE
INSURANCE IS DEPENDENT ON CERTAIN PARAMETERS
LIKE GENDER, AGE, VEHICLE CLASSIFICATION, ETC.

• WHAT IS THE COVER LEVEL OF MOTOR INSURANCE

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1.MOTOR INSURANCE DOES NOT COVER LOSS DUE TO WEAR
AND TEAR, BREAKDOWN, ACCIDENTS DUE TO DRUNKEN
DRIVING AND WAR PERILS.2. INSURANCE ALSO DOES
NOT COVER FAILURE OR BREAKAGE WHEN THE VEHICLE IS
USED OUTSIDE THE GEOGRAPHICAL AREA.

• WHAT MOTOR INSURANCE DOES NOT COVER

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