1. PRESENTATION ON
MOTOR TRADE POLICIES

2. WHO CAN AVAIL TRADE POLICY
MOTOR VEHICLE DEALERS
MOTOR VEHICLE REPAIR/SERVICE CENTRES
ANYBODY IN MOTOR VEHICLE BUSINESS

3. Motor Trade Policies 3 Types of Policies
MOTOR TRADE-ROAD TRANSIT RISKS POLICY
MOTOR TRADE ROAD RISKS ONLY POLICY
MOTOR 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 POLICY
DELETION 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 Certificates
SHALL 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 REPAIR
PROCEEDING TO & FROM ANY PLACE FOR REGISTRATION
TRIAL/DEMONSTRATION
FOR DELIVERY TO CUSTOMER
PROCEEDING TO OR RETURNING FROM AIRPORT/RLY.STN/WHARF FOR OR AFTER BEING TRANSPORTED
PROCEEDING 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 TRIP
DETAILS REQUIRED IN FORM 19
Date
T.C.NO/REGN.NO IF REGD
DESC. OF MOTOR VEHICLE
PURPOSE FOR SENT/BROUGHT
DRIVER’S NAME,D/L no. & Address
Hours of leaving the premises
Hours of Return
Mileage covered
Signature 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 town
Policy form- Motor Trade Package Policy.
Rating- As percentage of IDV
For 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 Policy
Depreciation- 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 GR40
Additional 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 driven
Extension 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-I
Loss 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 breakages
2. 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 behalf
Accidental death or injury to any person other than employees or member of the insured’s family or household- Unlimited
Accidental damage to any vehicle held in trust or in the custody or control of the insured.
Other third party property damage

16. General Exclusions
Internal Risks Policies are subject to excess as per G R 40
i.e Rs 50/ for Two Wheeler & Rs 500/ for Other Vehicles.
E.Q & STFI , Riot , Strike perils
Fire or Explosion
Any consequence of Burglary, Housebreaking or theft
Damage to property while being worked upon and directly resulting from such work

17. General exclusions contd…
Defective Workmanship
Death, Injury or Damage caused by demolition/structural alteration or addition to premises
Loss 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-E
Road Risk-F
Internal Risks-G
Policy Form
Commercial Vehicle/ Liability Only Policy
Motor Trade Package Policy
Motor Trade Internal Risks Policy
Perils
10 Perils
01 Peril
Exclusions ( Section-I)
As per Standard Commercial Vehicles Policy
Same
Limited( 02 sets)
Depreciation on Parts
Yes No
Risks covered
Transit Risks
Public Place+ Temporarily Garaged only
IN/ON Insured premises only
CPA
NCB
Policy Excess
Rs. 50/-( 2 Wheeler)
Rs. 500/-(others)
Towing Charges
Rs. 150/-
NIL

19. COMPARISION OF MOTOR TRADE POLICIES
COVER
Road Transit-E
Road Risk-F
Internal Risks-G
SECTION I: LOSS OF OR DAMAGE TO THE VEHICLE INSURED
(COVER)
Fire, explosion, self ignition or lightning 
(E)
Burglary, housebreaking or theft
Riot and strike
Earthquake (fire and shock damage)
Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost
Accidental external means
( visible)
Malicious act 
Terrorist activity
Whilst in transit by road rail inland-waterway lift elevator or air
Landslide rockslide.
COMPARISION OF MOTOR TRADE POLICIES

20. COMPARISION OF MOTOR TRADE POLICIES
EXCLUSIONS
Road Transit-Commercial Policy
Road Risk-Trade Policy
Internal Risks-Internal Risks Policy
SECTION I: LOSS OF OR DAMAGE TO THE VEHICLE INSURED
(EXCLUSIONS)
Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakages 
Tyres 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 drugs 
Loss of or damage to accessories by burglary, housebreaking or theft unless the vehicle is stolen at the same time
Overloading or straining
*Note: Can be covered as per Endorsement 62 on payment of extra premium

21. CASE STUDY
MOTOR CAR MOVING UNDER TRADE CERTIFICATE MEETS WITH ACCIDENT. CLAIM FORM REVEALS THE FOLLOWING.
Use- Private
Occupants- NIL
Driver- Relative of the employee.
D/L- Valid-But no badge.
Discuss all aspects of liability.

22. Case Study-Motor Trade Internal Risks1.
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.Jayachandran
Senior Divisional Manager
National Insurance Co. Ltd
Kochi D.O