WHO CAN AVAIL TRADE POLICY

•MOTOR VEHICLE DEALERS

•MOTOR VEHICLE REPAIR/SERVICE CENTRES

•ANYBODY IN MOTOR VEHICLE BUSINESS

Motor Trade Policies

•3 Types of Policies

•MOTOR TRADE-ROAD TRANSIT RISKS POLICY

•MOTOR TRADE ROAD RISKS ONLY POLICY

•MOTOR TRADE INTERNAL RISKS POLICY

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.

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.

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.

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.

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

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

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

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.

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)

MOTOR TRADE INTERNAL RISK PACKAGE POLICYCOVERAGE-

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

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

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

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

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.

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 10 Perils 01 Peril

Exclusions ( Section-I) As per Standard Commercial Vehicles Policy Same Limited( 02 sets)

Depreciation on Parts Yes Yes No

Risks covered Transit RisksPublic Place+ Temporarily Garaged only

IN/ON Insured premises only

CPA No No No

NCB No No No

Policy Excess Rs. 50/-( 2 Wheeler)Rs. 500/-(others) Same Same

Towing ChargesAs per Standard Commercial Vehicles Policy Rs. 150/- NIL

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 (E)

Riot and strike (E)

Earthquake (fire and shock damage) (E)

Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost (E)

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

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

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.

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.

T H A N K Y O U

P.Jayachandran

Senior Divisional Manager

National Insurance Co. Ltd

Kochi D.O

Email: p.jayachandran@nic.co.in