MOTOR INSURANCE

WHAT IT COVERS
Indemnity for damage or loss of the vehicle insured as a result of an accident, theft or attempted theft or fire. Legal liability for damage to the property of third parties or for injury or death of third parties arising from the use of the Motor vehicle.

BENEFITS UNDER THE POLICY
It is required by law that all motor vehicles used on public roads carry at least an ‘Act only’ cover. The insured is relieved of huge financial burden he may be called upon to pay in connection with the use of the vehicle. Society as a whole benefit regardless of the financial standing of the vehicle owner, accident victims are compensated.

CLASSES OF COVER

(A) ACT ONLY COVER
It covers the insured in respect of any liability (unlimited) that he may incur as a result of the death of or bodily injury to any person caused by or arising from the use of the motor vehicle. This is the minimum cover required by the third party insurance act of 1958.

(B) THIRD PARTY COVER
This covers legal liability arising from:-
(I) damage to third party property (limited).
(II) injury or death to third parties (unlimited).

(C) THIRD PARTY FIRE AND THEFT
This covers legal liability arising from: -
(I) Damage to third party property (limited)
(II) Injuries or death to third parties (unlimited).
(III) In addition, it covers the insured’s vehicle for loss or damage caused by fire, theft or attempted theft to the extent of the insured value.

(D) COMPREHENSIVE
This is the widest cover and covers the following: -
(I) Loss or damage to the insured’s vehicle either by fire, theft ,attempted theft or accident.
(II) Medical expenses of the insured, driver or any occupant
of the vehicle at the time of the accident up to a specified amount (limited to private cars)
(III) The insured’s legal liability for bodily injuries or death to the third party (unlimited)
(IV) The insured’s legal liability for damage to properties of third parties (limited)

PROCEDURE FOR MAKING A CLAIM

(a) REGISTRATION/ESTABLISHING A FILE

Policy holders reporting accidents to the Company are given Motor Claim forms for completion and the facts so stated are authenticated by the signatures of the driver/insured. Special attention is paid to the particulars of the vehicle, the driver and the insured. A claim file is then established by extracting information from the relative underwriting policy file.
Claim files are orderly and serially numbered taking into account the order in which accidents/claims are reported, the office from which the policy was effected and the year of occurrence.

(b) SETTLEMENT OF OWN DAMAGE CLAIMS

An Own Damage Claim may arise out of damage through accident, fire or theft to the insured’s own vehicle provided such a vehicle is comprehensively insured. In most cases, damage claims are initiated by the submission of a letter of claim by the insured or his agent.
To process an Own Damage Claim, the following procedures are followed.

i. The completed claim form is now scrutinized vis-à-vis the information extracted from the policy file with a view of determining liability under the policy.

ii. The next step is to carry out investigation to confirm the fact of the case, and the extent of damage where there is doubt, a Police Report is requested for. For theft cases and for all commercial vehicles, submission of Police Accident Report is a compulsory requirement for settling an Own Damage Claim. Also, in all fire cases, a Fire Officer’s Report in addition to Police Report are demanded.

iii. Determination of Liability
Where the Company is NOT LIABLE, that is, where there is a breach of a policy condition or where the date of the accident falls outside the period of insurance, the claimant is accordingly informed. Where the Company is liable the insured is made to obtain repair estimate from a garage of the insured’s own choice or from the accredited dealers of vehicle concerned.

iv. Surveyor’s Assessment
An assessment of the damage is then made by the Motor Surveyor whose duties involve:

(a) Comparing the damage with the repair estimate to delete parts not directly related to the accident.

(b) Checking the prices of the parts of eliminate over involving,

(c) Indicating the contribution to be made by the insured: here new for old parts are subject to contribution since the insured, by the principle of indemnity, is not to benefit format he misfortune.

(d) Where the vehicle is a total loss, an assessment of the pre-accident and salvage values are given.