Beacon

Motor Vehicles Act :

Motor Vehicles Act passed in 1939 and amended in 1988.

The insurance of motor vehicles against damage is not made compulsory, but the insurance of third party liability arising out of the use of motor vehicles in public places is made compulsory. No motor vehicle can ply in a public place without such insurance.

The policy of insurance should cover the liability incurred in respect of any one accident as follows:

(a) In respect of death of or bodily injury to any person, the amount of liability incurred is without limit i.e. unlimited.

(b) In respect of damage to any property of third party : A limit of Rs.6,000/-

        The liability in respect of death of or bodily injury to any passenger of a public service vehicle in a public place, the amount of liability incurred is unlimited.

        Section 140 of the Motor Vehicles Act 1988, provides for liability of the owner of the Motor Vehicle to pay compensation in certain cases, on the principle of “no fault”. The amount of compensation, so payable, is, Rs.50,000/- for death, and Rs.25,000/- for permanent disablement of any person resulting from an accident arising out of the use of the motor vehicle.

(Note: The principle of “no fault” means the claimant need not prove negligence on the part of the motorist. Liability is automatic.)

Private Cars/ Scooters/ Motorcycles:

Rates are based upon the cubic capacity as given by manufacturers, Insured’s Declared Value (IDV), the Zone of operation and age of the vehicle.

The cubic capacity of the vehicle indicates the power of the engine. Separate rates apply for cars upto 1000 cc, fònm 1000 cc – 1500 cc and ab_ve 1500 cc and scooters/motorcycles upto 150cc,150-350cc & above 350cc.

Similarly there are different rates for vehicles in the age groups upto 5 yrs.; 5 yrs. to 10 yrs. and above 10 yrs.

There are two Zones of operation, Zone A and Zone B, as follows:

Zone A : Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, N.Delhi & Pune.

Zone B : Rest of India. Note: The rates for Zone A are higher than those for Zone B.