For the transaction of motor business in India in accordance with the provisions of part II-b of the insurance act 1938, the tariff advisory committee have . insures may restrict the cover under the standard B policy form without reduction in premium or they may increase the premium for the same or restricted cover without obtaining the permission of the miscellaneous sub-committee of the region concerned.

Period of Insurance
Unless specifically stated otherwise, premiums quoted in the Schedules under various Sections of the India Motor Tariff are the premiums payable on policies issued or renewed for a period of twelve months. No policy is permitted to be issued or renewed for any period longer than twelve months. It shall, however, be permissible to extend the period of insurance under the policy for any period less than twelve months, for the purpose of arriving at a particular renewal date or for any other reasons convenient to the insured, by payment of extra premium calculated on pro-rata basis, provided such policies are renewed with the same insurer immediately after the expiry of such an extension. All such extensions will require attachment of the following Warranty to the policy.
Payment of Premium
The full premium is required to be collected before commencement of cover. It is not permissible to collect premium in installments.

Minimum Premium
The minimum premium applicable for vehicles specially designed or modified for use of the blind, handicapped and mentally challenged persons will be Rs.25/- per vehicle. For all other vehicles, the applicable minimum premium per vehicle will be Rs.100/-.

On transfer of ownership, the Liability Only cover, either under a Liability Only policy or under a Package policy, is deemed to have been transferred in favor of the person to whom the motor vehicle is transferred with effect from the date of transfer.
The transferee shall apply within fourteen days from the date of transfer in writing under recorded delivery to the insurer who has insured the vehicle, with the details of the registration of the vehicle, the date of transfer of the vehicle, the previous owner of the vehicle and the number and date of the insurance policy so that the insurer may make the necessary changes in his record and issue fresh Certificate of Insurance
Change of Vehicle
A vehicle insured under a policy can be substituted by another vehicle of the same class for the balance period of the policy subject to adjustment of premium, if any, on pro-rata basis from the date of substitution.
Where the vehicle so substituted is not a total loss, evidence in support of continuation of insurance on the substituted vehicle is required to be submitted to the insurer before such substitution can be carried out.

Hire Purchase Agreement
Policies and Certificates of Insurance are to be issued in the name of Hirer only and issuance in the joint names of the Hirer and Owner is prohibited. If Owner’s interest is to be protected it should be done by the use of For the purpose of the Personal Accident cover for the Owner-Driver granted under the policy, the insured named in the policy will continue to be deemed as the Owner- driver subject to conditions of the policy relating to this cover.

Cancellation of Insurance and Double Insurance
Cancellation of Insurance
(a) A policy may be cancelled by the insurer by sending to the insured seven days notice of cancellation by recorded delivery to the insured’s last known address and the insurer will refund to the insured the pro-rata premium for the balance period of the policy.
(b) A policy can be cancelled only after ensuring that the vehicle is insured elsewhere, at least for Liability Only cover and after surrender of the original Certificate of Insurance for cancellation.
Double Insurance
When two policies are in existence on the same vehicle with identical cover, one of the policies may be cancelled. Where one of the policies commences at a date later than the other policy, the policy commencing later is to be cancelled by the insurer concerned.
If a vehicle is insured at any time with two different offices of the same insurer, 100% refund of premium of one policy may be allowed by canceling the later of the two policies. However, if the two policies are issued by two different insurers, the policy commencing later is to be cancelled by the insurer concerned and pro-rata refund of premium thereon is to be allowed.
No Claim Bonus
(a) The percentage of applicable NCB is to be computed on the Own Damage premium required for renewal of the insurance after deducting any rebate in respect of “Vehicle Laid Up” under the policy. If the policy period has been extended in lieu of the rebate for the lay up of the vehicle, as per „Vehicle Laid Up‟ Regulation, such extended period shall be deemed to have been part of the preceding year of insurance.
(b) The entitlement of NCB shall follow the fortune of the original insured and not the vehicle or the policy. In the event of transfer of interest in the policy from one insured to another, the entitlement of NCB for the new insured will be as per the transferee’s eligibility following the transfer of interest.(c) If an insured vehicle is sold and not replaced immediately, or laid up, and the policy is not renewed immediately after expiry, NCB, if any, may be granted on a subsequent insurance, provided such fresh insurance is effected within 3 (three) years from the expiry of the previous insurance. The rate of NCB applicable to the fresh policy shall be that earned at the expiry of the last 12 months period of insurance.(d) In the event of the insured, transferring his insurance from one insurer to another insurer, the transferee insurer may allow the same rate of NCB which the insured would have received from the previous insurer. Evidence of the insured’s NCB entitlement either in the form of a renewal notice or a letter confirming the NCB entitlement from the previous insurer will be required for this purpose.

Concession for Laid-Up Vehicles
Vehicles laid up in garage and not in use for a period of not less than two consecutive months will be entitled to:
I. For Liability Only Policy –
a) A pro-rata return of premium for the period during which the vehicle is so laid up, which return will be credited to the insured in consideration of suspension of the insurer’s liability under the policy during the period of lay-up. The credited return of premium will be deducted from the next renewal premium. This cannot be given as cash refund even if the policy is not renewed with the same insurer.

b) The expiry date of the current period of insurance under the policy may be extended for a period equal to the period the policy remained suspended on account of the lay-up.

II. For Package Policy
The liability of the insurer under the policy will remain restricted for loss or damage of the insured vehicle by Fire and/or Theft as applicable during the period of such lay-up. In consideration of this restriction of cover under the policy: –
a pro rata return of premium for the period during which the vehicle is so laid up will be credited to the insured after retention of pro rata premium for the lay-up period in the tariff rate for Fire and/or Theft Risks as applicable for the class of vehicle concerned.

Registration, use and Insurance
It is not permissible to insure any vehicle in the name of an insured not conforming to the name recorded as owner of the vehicle in the vehicle registration document, excepting
i) in case of temporary substitution, 17
ii) in respect of Motor Trade Risk

1.Private Car Type Vehicles used for social, domestic and pleasure purposes and also for professional purposes (excluding the carriage of goods other than samples) of the insured or used by the insured’s employees for such purposes but excluding use for hire or reward, racing, pace making, reliability trial, speed testing and use for any purpose in connection with the Motor Trade
2. Motorized three wheeled vehicles (including motorized rickshaws / cabin body scooters used for private purposes only
3. Motorized three wheeled vehicles used for carriage of either own goods or for hire or reward are rateable under Class A.3 / Class A.4 ( as applicable) of the Commercial Vehicles Tariff

Premium for each of the following extra benefit opted for by the insured’s is to be shown separately in the premium computation table:
(i) Legal liability to paid drivers /and/or cleaner employed in connection with the operation and/or maintenance of motor vehicle under the Workmen’s Compensation Act, Fatal Accidents Act and at Common Law

(ii) Legal Liability to employees of the insured traveling in and / or driving the employer’s vehicle.
Liability to employees of the insured traveling in or driving the employer’s vehicle, either excluding or including the paid driver may be covered on payment of Additional Premium @ Rs. 25/- per employee, the premium being chargeable on the total number of such employees carried (including the paid driver, if applicable) but not exceeding the maximum licensed seating capacity of the vehicle.

(ii) Trailers :
Trailers to be used with any vehicle ratable under this tariff can not be insured separately and the scope of cover on the trailer(s) is to correspond to the cover for the towing vehicle. Each such trailer is required to be specifically identified by its Registration Number and separate IDV is to be declared for each such trailer. Issuance of floater policy covering such trailers is strictly prohibited.

(iii) Rallies held in India
Policies may be extended to include use of the insured vehicle in a particular rally organized by any recognized motoring organization on payment of the following additional premium

1 The compulsory deductibles for the Own Damage cover under Package Policy referred to under GR 40 will become Rs. 5000/- for each and every claim for the entire duration of this extension only.
2. The extension does not cover either the driver and / or the passengers carried in the vehicle or the promoters of the event.
3. This extension does not apply to speed tests, dexterity trials, hill climbs or motor racing

(iv) Reliability Trials Conducted in India by Manufacturers of Vehicles in India
If such trials are to be insured, reference is to be made to TAC with the appropriate details.

(v) Accidents to Soldiers/ Sailors/Airmen employed as Drivers by Defense officials in their private capacity:-
Legal liability of defense officials under Army/Navy/Air force regulations for bodily injury/death caused to soldiers/sailors/airmen employed as drivers by them in their private capacity whilst driving the vehicle insured (including mounting into, dismounting from or traveling in the vehicle) may be covered at an additional premium of Rs 100/- provided the drivers hold effective driving license

i. Loss of Accessories :
Loss of accessories, the property of the Insured , by Theft may be covered at an additional premium @ 3% of the value of the accessories specifically declared by the proposer / insured in the proposal form and or in a letter forming part of the proposal from, subject to a minimum premium of Rs.50/- for this extra benefit only.

ii. Legal Liability to persons employed (Paid Drivers/Cleaners) in connection with the operations and/or maintenance of the two wheeler under the Workmen’s Compensation Act, 1923, Fatal Accidents Act, 1855 and at Common Law
Legal Liability to persons employed (paid drivers/cleaners) in connection with the operations and/or maintenance of the two wheeler under the Workmen’s Compensation Act, 1923, Fatal Accidents Act

iii. Liability to the employees of the insured (other than Paid drivers/Cleaners) who may be driving/riding the employer’s two wheeler .
Liability to the employees of the insured (other than paid drivers/cleaners), who may be 37
driving/riding the employer’s two wheeler may be insured at an additional premium of Rs.60/-.

iv. Rallies held in India
Policies may be extended to include use of the insured two wheeler in a particular rally organized by any recognized motoring organization on payment of the following additional premium
v. Reliability Trials Conducted in India by Manufacturers of Vehicles in India
If such reliability trials are to be covered, reference is to be made to TAC with appropriate details.

Any truck, cart, carriage or other vehicle, including agricultural implements, without means of self-propulsion, drawn or hauled by any self-propelled vehicle is referred to as trailer for the purpose of this tariff. Policies covering towing vehicles may be extended to include trailers or a separate policy may be issued to cover trailers. For either extending the policy covering the towing vehicle to include trailer(s) or for a separate policy for trailers, the premium is to be charged at the following schedule of rates:

1. Where more than one trailer is owned but not more than one trailer is towed at a time, the basis of rating is the basis of “1 trailer towed” and this must be applied to all trailers.

3. For the purpose of considering No Claim Bonus (NCB), in respect of accidents involving the towing vehicle and/or trailer(s) irrespective of whether one or more is/are damaged or give(s) rise to liability, the following clause is to appear in all policies covering either the towing vehicle(s) with trailer(s) or trailers separately:

2. Rates prescribed for Trailers under Tariff for Miscellaneous and Special Types of Vehicles- Class “D” are in respect of Trailers attached to special types of vehicles. Such trailers are not to be rated under this Tariff.


This section is sub-classified into:

i. Tariff for taxis or Private Car Type Vehicles plying for public hire.
ii. Tariff for Private 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. Tariff for Private Car Type Vehicles let out on private hire and driven by the hirer or any driver with hirer‟s permission.
iv. Tariff for Private Car Type Vehicles owned by hotels and hired by them to their guests.

the Tariff for Commercial Vehicles (CVT) are applicable to this Section except expressly provided otherwise. For cover under this section, Commercial Vehicles Policy form as given in Section 6 of the INDIA MOTOR TARIFF is to be used.

Use for Hire or Reward
i). In all cases other than Agricultural and Forestry vehicles, Mobile shops and Canteens, Cinema Film Recording and Publicity Vans, Delivery Trucks, Pedestrian controlled Trolleys and Goods Carrying Tractors and Vehicles used for Driving Tuition and Fire Brigade and Salvage Corps. Vehicles, the Standard Policy allows use of the Vehicles for hire or reward.
ii). The normal Policy also excludes use for the conveyance of passengers for hire or reward. Any vehicle, except Ambulances / Hearses, used for the carriage of passengers for hire or reward is to be rated under Section C of Commercial Vehicle tariff, depending upon the maximum number of passengers licensed to be carried.

Indemnity in respect of non-fare paying passengers
The normal policy whilst permitting the use of the vehicle for the carriage of passengers (other than for hire or reward) does not provide indemnity in respect of death or bodily injury to passengers other than employees coming under the provisions of the Motor Vehicles Act. If indemnity is to be provided to such passenger, application is to be made to the TAC for rating.


Basis of rating
Policies may be issued in respect of any type of motor trade vehicle traveling under its own power at the following rates of premium. It is permissible to issue either separate Policies or Declaration Policies in respect of such risks.

Rating schedule
If the limit in respect of loss or damage to the vehicles in to excess rs. 25000/- own damage premium must be increased by an additional charge for each named driver or trade certificate at the rate of 1% on such excess value.

No claim discount
the discount may only be allowed provided that own damage claim is pending and no payment has been made in connection with any vehicle covered by the policy.
discount for excess accidental damage.

Discount for excess accidental damage
this discount is identical to the scale of discount allowed other commercial vehicles and has been explained in earlier pages.

risks of motor manufacture and motor assembly factories and risks comprising solely motor body builders or petrol filling stations are not subject to this tariff. under this tariff , two types of policies are issued . they are :
1) liability to public risks only policy
2) damage and liability to public risks policy

basis of rating
for motor trade-internal risks the rates of premium are fixed on the basis of superficial area of premises whole of land and building occupied by the insured for purpose of motor trade business. a percentage premium on the wages paid to employees subject to adjustment at the expiry of the policy as described in condition no.6 of the policy.

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