2 WHO CAN AVAIL TRADE POLICY MOTOR VEHICLE DEALERSMOTOR VEHICLE REPAIR/SERVICE CENTRESANYBODY IN MOTOR VEHICLE BUSINESS
3 Motor Trade Policies 3 Types of Policies MOTOR TRADE-ROAD TRANSIT RISKS POLICYMOTOR TRADE ROAD RISKS ONLY POLICYMOTOR TRADE INTERNAL RISKS POLICY
4 ROAD TRANSIT POLICY MOTOR VEHICLE TRAVELLING ON ITS OWN POWER POLICY- STD COMMERCIAL VEHICLE POLICY WITH DELETION OF NCB CLAUSE & SEC. IV ( P.A COVER)SEPARATE POLICY OR DECLARATION POLICY CAN BE ISSUED.COVERAGE- LIMITED TO TRANSIT FROM SPECIFIED POINT TO SPECIFIED POINT.
5 FEATURES…PERILS COVERED/EXCLUSIONS-AS PER STD. MOTOR PACKAGE POLICY FOR COMMERCIAL VEHICLES.DEPRECIATION- AS PER STANDARD PACKAGE POLICYDELETION OF 50% LIMITATION CLAUSE FOR DAMAGE TO TYRES ON PAYMENT OF EXTRA PREMIUM.IDV- SAME RULE AS APPLICABLE TO STD MOTOR PACKAGE POLICY.
6 MOTOR TRADE ROAD RISKS POLICY BASIS OF POLICY- 1. TRADE CERTIFICATE BASIS 2. NAMED DRIVER BASIS. TRADE CERTIFICATE- ISUUED AS PER RULE 35 OF CENTRAL MOTOR VEHICLES RULES. PERIOD OF VALIDITY- 12 MONTHS NUMBERING OF T.C- AB- STATE CODE 12- DISTRICT CODE TC1- TRADE CERTIFICATE NO.
7 RULE-39 OF CENTRAL MOTOR VRHICLES RULES Trade CertificatesSHALL NOT BE USED ON MORE THAN ONE VEHICLE AT A TIME.SHALL NOT BE USED UP ON ANY VEHICLE OTHER THAN VEHICLE IN THE BONAFIDE POSSESSION OF DEALER.
8 RULE -41 PURPOSES FOR WHICH TRADE CERTIFICATE CAN BE USED. FOR TEST-DURING OR AFTER REPAIRPROCEEDING TO & FROM ANY PLACE FOR REGISTRATIONTRIAL/DEMONSTRATIONFOR DELIVERY TO CUSTOMERPROCEEDING TO OR RETURNING FROM AIRPORT/RLY.STN/WHARF FOR OR AFTER BEING TRANSPORTEDPROCEEDING TO/ RETURNING FROM VEHICLE EXHIBITION
9 RULE-43- REGISTER OF TC’S REGISTER AS PER FORM -19 TO BE MAINTAINED IN DUPLICATE AND DUPLICATE COPY TO BE CARRIED DURING THE TRIPDETAILS REQUIRED IN FORM 19DateT.C.NO/REGN.NO IF REGDDESC. OF MOTOR VEHICLEPURPOSE FOR SENT/BROUGHTDRIVER’S NAME,D/L no. & AddressHours of leaving the premisesHours of ReturnMileage coveredSignature of authorised person
10 MOTOR TRADE- ROAD RISKS All Trade certificates in the possession of Dealer to be declared for Insurance-Not more than one policy for T.C’s and one policy for named driver basis shall be issued in respect of each townPolicy form- Motor Trade Package Policy.Rating- As percentage of IDVFor losses > Rs25,000 for Vehicles other than 2 wheelers & Rs 7,500/ for Two Wheelers to be covered at extra premium
11 Special Features.Covers loss or damage to the Vehicle in PUBLIC PLACE or temporarily garaged during the course of journey elsewhere than in any premises owned or occupied by the insured.Perils- As per Std. Motor Package PolicyDepreciation- As applicable in Std Motor Package Policy.Total Loss & IDV- As per Std. Motor Package Policy.Geographical Area of operation- With in 80/120 K.M radius from the insured’s address.
12 Special Features contd…. Excess- Applicable as per GR40Additional rate for deletion of 50% limitation clause in respect of damage to tyres.Extension for demonstration purpose. Insured or employee of the insured to accompany when being drivenExtension for Pvt. Use.(by Member, Director or Employee of the Insured)
13 MOTOR TRADE INTERNAL RISK PACKAGE POLICY COVERAGE- Sec-1 Damage to own Vehicles- Rs 50,000/ AOA Sec-II Bodily Injury- Unlimited Property Damage excluding damage to Vehicles- Rs 1.5 lac AOA Damage to Vehicles(T.P) Rs 1.5 lacs AOA Rating- Based on superficial Area occupied & Annual wages
14 Section-ILoss or Damage to any vehicle owned by the insured or his family members caused by accidental external &visible means and occurring in or on the premises.Exclusion-1- Loss of use, Depreciation, Wear & Tear, Ele. & Mech. Breakdown, failures or breakages2. Damage to Tyres by application of Brakes or by punctures, cuts or bursts
15 Section II-Loss or Damage occurring in or about the premises through negligence of insured or any person acting on his behalfAccidental death or injury to any person other than employees or member of the insured’s family or household- UnlimitedAccidental damage to any vehicle held in trust or in the custody or control of the insured.Other third party property damage
16 General ExclusionsInternal Risks Policies are subject to excess as per G R 40i.e Rs 50/ for Two Wheeler & Rs 500/ for Other Vehicles.E.Q & STFI , Riot , Strike perilsFire or ExplosionAny consequence of Burglary, Housebreaking or theftDamage to property while being worked upon and directly resulting from such work
17 General exclusions contd… Defective WorkmanshipDeath, Injury or Damage caused by demolition/structural alteration or addition to premisesLoss or damage in connection with the use ofpower driven cranes, elevators, lifts or hoists other than car hoist having lift less than 6 feet or equivalent.
18 COMPARISION OF MOTOR TRADE POLICIES Road Transit-ERoad Risk-FInternal Risks-GPolicy FormCommercial Vehicle/ Liability Only PolicyMotor Trade Package PolicyMotor Trade Internal Risks PolicyPerils10 Perils01 PerilExclusions ( Section-I)As per Standard Commercial Vehicles PolicySameLimited( 02 sets)Depreciation on PartsYesNoRisks coveredTransit RisksPublic Place+ Temporarily Garaged onlyIN/ON Insured premises onlyCPANCBPolicy ExcessRs. 50/-( 2 Wheeler)Rs. 500/-(others)Towing ChargesRs. 150/-NIL
19 COMPARISION OF MOTOR TRADE POLICIES COVERRoad Transit-ERoad Risk-FInternal Risks-GSECTION I: LOSS OF OR DAMAGE TO THE VEHICLE INSURED(COVER)Fire, explosion, self ignition or lightning(E)Burglary, housebreaking or theftRiot and strikeEarthquake (fire and shock damage)Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frostAccidental external means( visible)Malicious actTerrorist activityWhilst in transit by road rail inland-waterway lift elevator or airLandslide rockslide.COMPARISION OF MOTOR TRADE POLICIES
20 COMPARISION OF MOTOR TRADE POLICIES EXCLUSIONSRoad Transit-Commercial PolicyRoad Risk-Trade PolicyInternal Risks-Internal Risks PolicySECTION I: LOSS OF OR DAMAGE TO THE VEHICLE INSURED(EXCLUSIONS)Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakagesTyres and tubes unless the vehicle is damaged at the same time(50% of the cost of replacement)*(brakes,puncture, cut, burst)Driver under influence of intoxicating liquor or drugsLoss of or damage to accessories by burglary, housebreaking or theft unless the vehicle is stolen at the same timeOverloading or straining*Note: Can be covered as per Endorsement 62 on payment of extra premium
21 CASE STUDYMOTOR CAR MOVING UNDER TRADE CERTIFICATE MEETS WITH ACCIDENT. CLAIM FORM REVEALS THE FOLLOWING.Use- PrivateOccupants- NILDriver- Relative of the employee.D/L- Valid-But no badge.Discuss all aspects of liability.
22 Case Study-Motor Trade Internal Risks 1.When being repaired, the vehicle caught fire resulting in total loss.Discuss liability.2. The hydraulic hoist failed while the vehicle was undergoing repairs resulting in damages.Discuss Liability.
23 T H A N K Y O U Senior Divisional Manager National Insurance Co. Ltd P.JayachandranSenior Divisional ManagerNational Insurance Co. LtdKochi D.O