MOTOR CIRCULARS FOR YEAR 2002

SR.NO. CIRCULAR NO. DATE OF CIRCULAR EFFECTIVE DATE SUBJECT
1 IMT/01/2002 9/05/02 9/05/02 Motor Car Hill Climb
2 IMT/02/2002 16/05/02 16/05/02 Motor Car Hill Climb
3 IMT/03/2002 31/05/02 31/05/02 India Motor Tariff effective from 1.7.2002
4 IMT/04/2002 21/06/02 21/06/02 Revised India Motor Tariff effective from 1-7-2002
5 IMT/05/2002 28/06/02 28/06/02 Revised India Motor Tariff effective from 1-7-2002
6 IMT/06/2002 23/10/02 23/10/02 Ceiling on loading of premium and acceptance of exclusive third party motor proposals
7 IMT/07/2002 24/10/02 24/10/02 India Motor Tariff - Statistical Codes

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IMT/10/2001 20th November, 2001

Re: Rating of Three Wheeled Motorised Rickshaws for

Carriage of goods only - GVW exceeding 1200 kgs

Arising out of a query one of the Insurers regarding the reating of three wheeled motorised rickshaws for carrying of goods having GVW exceeding 1200 Kgs. it has been decided to rate the vehicle under "Class A - Goods carrying vehicle upto 2000 kgs" against rate code 3009.

Insurers are requested to inform their operating offices suitably.

Secretary

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 IMT/1/2002 9th May, 2002

Motor Car Hill Climb

We have received a request for rating of the above Motor Car Hill climb organised at Royal Palms Golf Club on May 19, 2002.

Insurers are advised to rate the proposed rally as per the following rates terms and conditions.

1. The additional risk of hill climbing would be covered under the Standard Policy by charging a loading of 300%

on Short Period Scale of rates for both Own Damage & Third

Party cover.

2. The policy should not be extended to give PA Cover for riders

3. Extension should not be allowed to the passengers carried on

the vehicle.

4. Indemnity should not be provided to the promoters of the rally.

Insurers are requested to inform their operating offices suitably.

Secretary

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IMT/2/2002 16th May, 2002

Motor Car Hill Climb

Further to our Circular No. IMT/1 dt. 9th May, 2002, we would like to state that as informed by the Maharashtra Automotive Sports Association, the organisers of the Motor Car Hill Climb at Royal Palms Golf Club, Mumbai the event is postponed to 26th May, 2002, from 19th May, 2002. All other terms and conditions of our circular remains unchanged. The Insurers may do the needful.

Secretary ------------------------------------------------------------------------------------------------

IMT/3/2002 31-5-2002

India Motor Tariff effective from 1.7.2002

The Revised India Motor Tariff as approved by the Authority will be effective from 1.7.2002. It supersedes the present India Motor Tariff.

The revised tariff is hosted on TAC's websites as follows:

Www.tac.org.in http://busines.vsnl.com/tac

The statutory version printed by TAC is being made available as per indents received.

While all efforts have been made to make the tariff hosted on the websites as authentic as possible, all concerned are requested to use or refer to the statutory version printed by TAC. In case of any discrepancy between the tariff on the website and the print version, the latter will prevail.

Secretary

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IMT/4/2002 21st June, 2002

India Motor Tariff effective from 1.7.2002

Further to our Circular No. IMT/3 dated 31st May 2002, informing the effective date of revised India Motor Tariff which comes into force with effect from 1st July, 2002, insurers are hereby advised to incorporate the following corrections in the said tariff:

GR. 6 Classic Cars (Page 3)

Add the word 'special' before the word 'cover' appearing in the last sentence of the above GR.

GR. 36 B. Optional Personal Accident Cover for persons other than Owner - Driver

(Page 22 )

The table referred to under the above GR is to be corrected as below:-

Description of benefits

% of Capital Sum Insured Premium for every unit of CSI of Rs.10,000/- or part thereof (in Rs)
    Pvt.Car Mot.TwoWheeler Com.Veh.
i) Death only 100%

5 7 6

ii) Loss of Two Limbs or sight of two eyes or one limb and sight of one eye 100%
iii) Loss of one Limb or Sight of one eye 50%
iv) Permanent Total Disablement from injuries other than named above 100%

GR. 39 Third Party Property Damage (TPPD) Cover (Page 22)

To add para C as under on Page 23 (below B)

C. No TPPD cover for unlimited liability or for limits other than those shown under this GR shall be granted.

Regulation 9 - Legal liability for Accidents to Non-fare paying Passengers including employees of the Insured who are not "Workmen" under the Workmen's Compensation Act. (Page 50)

The provision 'a' and 'b' are to be corrected as under:

a.. For Commercial Vehicles not designed for carriage of passengers.

Goods carrying vehicles Rs. 75/- per passenger.

b. For Commercial Vehicles designed for carriage of passengers Rs. 125/- per passenger.

Stage I:

Basic premium on vehicle and accessories )

)

+ Electrical and Electronics fittings ) = A

)

+ Bi -fuel kit )

Stage II:

Add: All extras ( 'a' - 'f' as mentioned in ) = B the specimen computation table)

Stage III

Add: All discounts ( 'g' - 'i' as mentioned ) = C

in the specimen computation table)

Stage IV

(A + B ) - C = D

Stage V

Apply percentage of NCB on D

NB: The percentage extra/discount referred to under various GRs / Sections of the Tariff shall apply on the basic premium i.e. 'A' above unless otherwise specified.

Secretary

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IMT/5/2002 Date : 28-06-2002

MOST URGENT

Re: Revised India Motor Tariff

effective from 1-7-2002

This refers to our earlier circulars regarding the revised India Motor Tariff applicable from 1-7-2002.

However, the revised India Motor Tariff effective from 1-7-2002 shall not be applicable to insurance of buses owned by bonafide members of the Asansol Minibus Association, until further orders.

All insurers are required to note the above instructions for strict compliance and advise their operating offices suitably.

Secretary

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IMT/6/2002 Date : 23.10.2002

Re : Ceiling on loading of premium and

acceptance of exclusive Third party motor proposals

Reference is drawn to IRDA circulars dated 17/05/02, 28/05/02 and 3/10/02 in the above connection.

Reference is also invited to GR 3 B of The India Motor Tariff effective July 1 2002, reading as under:

"RATES PROVIDED UNDER THIS TARIFF ARE MINIMUM RATES. LOADING ON TARIFF PREMIUM RATES BY 100% MAY BE APPLIED FOR ADVERSE CLAIMS EXPERIENCE OF THE VEHICLE INSURED AND INDIVIDUAL RISK PERCEPTION AS PER THE INSURER'S ASSESSMENT. IF THE Experience continues to be adverse, a further loading of 100% on the expiring premium may be applied. No further loading shall apply."

Despite various clarifications issued it appears that there is no uniformity of practice in the matter of application of loading based on adverse claims experience giving rise to discontent among the insuring public.

With a view to set at rest any confusion that may prevail in this regard it is being clarified as under:

Loading on tariff premium in respect of Package as well as Liability Only policies as per parameters defined in the tariff can be effected by an insurer on the basis of claims experience of the concerned vehicle insured. No loading can be charged in cases of vehicles insured which do not have an adverse claims history. Proof of adverse claims must be provided to the insured on demand.

Loading is to be applied on the following pattern: