MOTOR INSURANCE-PART 1

1. The first Motor Car was introduced in to England in the year – 1894
2. The Motor Policy was issued in – 1895 to cover Third Party Liabilities
3. Comprehensive Motor Policy issued in – 1899
4. Car and General Insurance Corporation Limited established in – 1903
5. Compulsory TP insurance acts are – Road Traffic Acts 1930 & 1934
6. The above two acts are consolidated by – Road Traffic Act, 1960
7. In India the Motor Vehicles Act was passed in – 1939
8. Compulsory TP Insurance introduced in India in – 1946
9. Motor Vehicles 1939 Act replaced by – The Motor Vehicles Act 1988 and come into
force from 1st July, 1989
10. Under Section 146 of the M.V.Act, 1988 no person shall allow any other person to use a
vehicle in a– public place unless the vehicle is covered by insurance
11. In the event of Total Loss of the vehicle, insurers pay the Insureds Declared value of the
vehicle as defined – in GR 8 of the Revised Motor Tariff
12. Agreed value policies are prohibited by the Tariff except for – Vintage Cars as defined
in GR 5
13. Subrogation is modified by Agreements between Insurers – ex: Knock for Knock
Agreement
14. Contribution arises when there is a – Double Insurance
15. The contribution condition is specially worded in private car policies because the owner
is also covered for Third Party Liability while – driving cars not belonging to him
16. “Motor Vehicle” is defined in Section 2(28) of the M.V.Act, 1988 as – any mechanically
propelled vehicle adapted for use upon roads whether the power of propulsion is
transmitted thereto from an external source and includes a chassis to which a body
has not been attached and a trailer
17. Vehicle running upon fixed rails or an vehicle of a special type adapted for use only in a
factory or in any other enclosed premises or a vehicle having less than four wheels fitted
with engine capacity of not exceeding 25 cc – is not come under “Motor Vehicle”
definition
18. Private Car means – ( a ) Private car type vehicles used for social, domestic and pleasure
purposes and also for professional purposes ( b ) motorized three wheeled vehicles (
including motorized rickshaws / cabin body scooters used for private purposes only ) ( c )
Three wheeled vehicles (including motorized rickshaws, cabin scooters used for private
purposes )
19. Previously there is a “Goods carrying vehicles ( own goods )” & Goods carrying vehicles
( General Cartage ) but now – goods carrying vehicles is called as “ Goods carriage”
only and there is no categorization of Public carrier and private carrier
20. But Motor Tariff categorized for rating purpose as – Own goods Carrier and General
Cartage Carrier
21. In revised Tariff ( 1.7.2002) T.A.C. renamed as – Public Carrier and Private Carrier
for rating purpose
22. Passengers Carrying Vehicles – ( i ) Four wheeled vehicles and three wheeled vehicles
used for carrying passengers for hire or reward with carrying capacity not exceeding 6
passengers (ii) Four or more Wheeled passenger carrying vehicles with carrying capacity
 exceeding 6 passengers and three wheeled passenger carrying vehicles with carrying
capacity exceeding 17 passengers for hire or reward (iii ) Motorized three wheeled
passenger carrying vehicles with
carrying capacity exceeding 6 passengers but not exceeding 17 passengers for hire or
reward
(iv ) Motorized two wheelers used for carrying passenger for hire or reward
23. Passenger Carrying Vehicles ( 4 wheeled and 3 wheeled ) for hire or reward – ( i ) Taxis
or Private car type vehicles plying for public hire ( ii ) Private Type Taxis let out on
Private Hire direct from the Owner with or without meters and driven by the Owner or an
employee of the Owner
( iii ) Private car type vehicles let out on Private Hire and driven by the Hirer or any
driver with his permission ( iv ) Private Car type vehicles owned by Hotels and hired by
them to their guests
24. How many type of Miscellaneous and Special type of Vehicles are there – Total 58 type
of vehicle are there under this section
25. Compulsory Excess is applicable to – all Miscellaneous and Special Type of vehicles
26. Liability only policy covers – Third party Liability for bodily injury and/or death
and property damage. Personal accident cover for Owner Driver is also included
27. Under Motor Tariff Regulations GR 45 A says – the insured can take restricted cover
for Fire and/ or Theft risks if the vehicle may be laid up in garage and not in use
28. Chapter VII – A and Chapter VIII of the Act provide for insurance of Motor
Vehicles against –Third Party Risk

MOTOR INSURANCE PART -2

1. Motor Vehicle Act , 1939 , but provisions of the chapter VIII were brought into force
from 1.7.1946 and those of Chapter VII – A were effective from 1.10.1982
2. The Motor Vehicles Act, 1988 ( Act No.59 of 1988 ) replaced the – earlier 1939 Act and
become effective from 1.7.1989
3. Chapter X of the MV Act, 1988 Sections 140 to 144 deals with – “Liability without
Fault in Certain cases” ( 1939 Act VII-A SEC 92A to 92E )
4. Chapter XI of the New Act, Sections 145 to 164 deal with – “Insurance of Motor
Vehicles against Third party risks”
5. Chapter XII sections 165 to 176 of the New Act deal with – “Claims Tribunals”
6. Provisions of Chapter VIII of the 1939 Act have now been covered under – Chapter XI
& XII of the New act
7. Chapters X, XI, XII of Motor Vehicle Act 1988, exclusively deals with – Compulsory
Third Party Insurance
8. “Articulated Vehicle” means – A motor vehicle to which a semi-trailer is attached
9. “Certificate of Registration” means – The certificate issued by Competent Authority
to the effect that a motor vehicle has been duly registered in accordance with the
provisions of the Act (Chapter IV of the Act )
10. Conductors License deals by – Chapter III of the Act
11. “Contract Carriage” means – a motor vehicle which carries passenger ( s ) for hire or
reward and is engaged under contract, whether expressed or implied, for the use of
such vehicle as a whole for the carriage of passengers mentioned therein, and
entered into by a person holding a permit in relation to such vehicle or any person
authorized by him in this behalf on a fixed or agree rate of sum on time basis and
included a maxicab, motorcab
12. “Stage carriage” means – a motor vehicle constructed or adapted to carry more than
six passengers excluding the driver for hire or reward a separate fares paid by or
for individual passengers either for the whole journey for stages of the journey
13. Difference between Contract Carriage and Stage carriage is – Contract carriage is
engaged for the whole of the journey and it can not pick up passenger en route and
whereas the stage carriage runs between two points irrespective of any prior
contract and it is boarded by passengers en route who pay the fare for the distance
they propose to travel
14. “Driving License” issued under – Chapter II of the MV Act 1988
15. Driving License for Transport (Licenses) are valid for – 3 years
16. Driving License for Dangerous and Hazardous goods vehicles renewal is – subject to
One day refresher course ( this license is valid for 1 year only )
17. Driving License for Private car is valid up to 20 years – till a person attains age of 40
years
18. Now above the age of 50 years would be renewed for a period of – 5 years on payment
of prescribed fees
19. LMV – up to GVW 7500 KG, MMV – GVW 7500 kgs to 12000 kg and – HGV – GVW
above 12000 kgs ( Gross Vehicle Weight )
20. “Maxi cab” means – any motor vehicle constructed or adapted to carry more than six
passengers,but not more than twelve passengers, excluding the driver, for hire or
reward
21. “Motor cab” means – any motor vehicle constructed or adapted to carry not more
than six passengers, excluding the driver, for hire or reward
22. “Motor car” means – any motor vehicle other than a transport vehicle, omnibus, road
roller,tractor, motor cycle or invalid carriage