MOTOR CIRCULARS 2005

SR.NO.	CIRCULAR NO.	DATE OF CIRCULAR	EFFECTIVE DATE	SUBJECT
1	MOT/1/2005	17/05/2005	1/7/2005	Long Term Act Only Policy for Two wheelers
2	MOT/2/2005	27/05/2005	27/05/2005	Extension of Geographical Area under Motor Policies Covering Rallies held outside India.
3	MOT/3/2005	27/05/2005	27/05/2005	GR.17 of India Motor Tariff - Transfers - Time Limit for Transfer of Package Policy
4	MOT/4/2005	17/6/2004	Clarificatory circular	GR.17 of India Motor Tariff - Transfers - Time Limit for Transfer of Package Policy
5	MOT/5/2005	24/6/2005		India Motor Tariff - Statistical Codes
6	MOT/6/2005	29/6/2005		India Motor Tariff -Long Term Act Only Policy for Two Wheelers
7	MOT/7/2005	3/8/2005		India Motor Tariff- Satistical Codes
8	MOT/8/2005	4/8/2005		Discount on OD Premium for ApprovedAnti-theft Devices.
9	MOT/9/2005	4/10/2005		Endorsement IMT - 16 PA cover to unnamed passengers other than insured and the paid driver and cleaner.
10	MOT/10/2005	10/10/2005		GR-42 Use of CNG /LPG fuel
11	MOT/11/2005	19/12/2005		India Motor Tariff - Statistical Codes

________________________________________________________________________

:IMT/01/05 Date: 17-5-2005

Sub : Long Term Act Only Policy for Two wheelers

Section – 3 of the India Motor Tariff permits insurers to issue annual Liability Only policies wherein the third party property damage liability is allowed to be restricted to conform to the statutory limits (Act liability) under the Motor Vehicles Act.

It has been decided to permit insurers to issue long term Act Only policies for two wheelers for fresh insurances and renewals effective from 1.7.2005, subject to the following terms and conditions:-

1) Issue of long term Act Only policy shall be compulsory in all those States/Union Territories where one time tax is collected by RTOs on two wheelers.

2) In States/Union Territories where one time tax is not compulsory, an option may be given to the insured, either to choose an annual cover or a long term cover to coincide with the validity period of the vehicle registration.

3) The proposal form to be obtained for insurance of long term Act Only policy for two wheelers shall be as per Annexure “A”.

4) The long term policy once issued shall not be allowed to be cancelled except on cancellation of registration of the vehicle by the RTO following total loss of the vehicle or for wrongful use of the vehicle, etc. In any event, no refund of premium shall be admissible on cancellation.

5) The standard cancellation condition (condition 4) as appearing in Section-6 of India Motor Tariff shall be replaced by the following wordings::

“The policy shall not be allowed to be cancelled except on cancellation of registration of the vehicle by the RTO following total loss of the vehicle or for wrongful use of the vehicle, etc. In any event, no refund of premium shall be admissible on cancellation.”

6) The original policy / certificate shall be issued in laminated form to enable their long term preservation and use by the insured.

7) The period of cover under the policy / certificate shall be mentioned as follows:

“From ______ O’clock on ________ to the date of cancellation of registration of vehicle”.

8. The policy shall bear the title “Long Term Act Only Policy” . The standard form of Liability Only Policy given in Section 6 of India Motor Tariff shall be used mentioning the Limit of Liability under Section 1(ii) of the Policy as Rs.6,000/-

9. Separate annual own damage or Liability Only policy (minus the Act liability) can be issued by an insurance company where long term Act Only Policy is taken either from them or from another insurance company.

10. Before issuing annual OD / Liability Only (minus the Act liability) policy, an insurer shall obtain and record proof of a valid long term Act Only Policy in respect of the two wheeler.

11. The following premium structure shall be applicable for the long term Act Only policies for two wheelers.:

Period of Insurance	Premium
Upto 3 years	3 years premium in advance less 5% discount
Upto 4 years	4 years premium in advance less 7.5% discount
Upto 5 years	5 years premium in advance less 10% discount
Upto 6 years	6 years premium in advance less 12.5% discount
Upto 7 years	7 years premium in advance less 15% discount
Upto 8 years	8 years premium in advance less 17.5% discount
Upto 9 years	9 years premium in advance less 20% discount
Upto 10 years	10 years premium in advance less 22.5% discount
Upto 11 years	11 years premium in advance less 25% discount
Upto 12 years	12 years premium in advance less 27.5% discount
Upto 13 years	13 years premium in advance less 30% discount
Upto 14 years	14 years premium in advance less 30% discount
Upto 15 years	15 years premium in advance less 30% discount

Consequently, the provisions of the India Motor Tariff stand modified to give effect to the aforesaid decision regarding issuance of long term Act Only policies..

Insurers are requested to take note and advise their operating offices suitably.

Secretary

Annexure “A”

PROPOSAL FORM

PROPOSAL FORM FOR LONG TERM ACT ONLY POLICY FOR TWO WHEELERS

(The queries made/details stated below are the minimum requirements to be furnished by a proposer. The Insurer may seek any other information as desired for underwriting purpose.)

Proposer's ( Owner's) Full Name:

Address (Address where vehicle is normally kept and used):

Pin Code: Tel. No: Fax No: E-Mail Address:

Occupation / Business:

Type of Cover required : Long Term Act Only policy

Period of Insurance: From---------------- To--------------------

1. Registration No. and Date of Registration of the Vehicle:

2. Registering Authority & Location :

3. Year of Manufacture :

4. Engine No :

5. Chassis No. :

6. Make of Vehicle :

7. Type of Body/Model :

8. Cubic Capacity :

9. Seating capacity including Driver :

10. Whether the vehicle is driven by non-conventional Yes/No

source of power

If yes, please give details.

11. Whether the vehicle is used for driving tuitions. Yes/No

12. Whether use of vehicle is limited to own premises? Yes/No

13. Whether vehicle is used for Commercial purposes ? Yes/No

14. Whether vehicle belongs to foreign embassy / consulate ? Yes/No

15. Whether vehicle is designed for use of Blind/ Handicapped/

mentally challenged persons and duly endorsed as such by RTA ? Yes/No

16 Previous History

a. Date of Purchase of the vehicle by the proposer ___________________________________

b. Whether the vehicle was New or Second Hand at the time of Purchase ________________

c. Will the vehicle be used exclusively for

A. private, social, domestic, pleasure & professional purposes (Yes/No)

B. carriage of goods other than samples or (Yes/No)

personal luggage

d. Is the vehicle in good condition ? (Yes/No)

If "No" please give full details ______________________________________

e. Name and address of the previous insurer _____________________________________

___________________________________________________________________________________________________________

f. Previous Policy Number ___________________________________________________

Period of Insurance from ________/_________/________ to _______/________/_____

g. Claims intimated during Year Number Amount (Rs.)

the preceding 3 years ________________________________________________________________________________

________________________________________________________________________________

h. Has any insurance company ever :

a) declined the proposal (Yes/No)

b) cancelled & refused to renew (Yes/No)

(if yes, reasons there for ).......................................................................................

c) imposed special condition or excess (Yes/No)

(if yes, reasons and details thereof) .................................................................

17. Details of Hire Purchase / Hypothecation / Lease

a) Is the vehicle proposed for insurance :-

Under Hire Purchase (Yes/No)

Under Lease Agreement (Yes/No)

Under Hypothecation Agreement (Yes/No)

b) If yes, give name and address of concerned parties _____ __________ __________ ________ _______ ________ ________ ______ ____ ______ ________ __________ ___________ _______ ______________ _________ ________ ______ _____ ______ _____ _____ _______ __________ ________ _____ _______

18. Details of Driver : (As at the date of proposal)

(a) Age Owner Driver

Others

(b) Does the driver suffer from defective vision or

hearing or any physical infirmity. (Yes/No)

If "Yes" please give details.

any accident or loss ? If yes, please give details as

under including the pending prosecution, if any :-

Driver’s Name	Date of Accident	Circumstances of Accident/ Claim	Loss/Cost Rs.

19. Any other relevant information :

Declaration by Insured

I / We hereby declare that the statements made by me / us in this Proposal Form are true to the best of my / our knowledge and belief and I / We hereby agree that this declaration shall form the basis of the contract between me / us and the "--------- --------- --------- -------------------- Co. Ltd."

I/We also declare that any additions or alterations are carried out after the submission of this proposal form then the same would be conveyed to the insurers immediately.

Place
Date		Signature of Proposer

INSURANCE ACT 1938, SECTION 41 - PROHIBITION OF REBATES

1. No person shall allow or offer to allow, either directly or indirectly as an inducement to any person to take out or renew or continue an insurance in respect of any kind or risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate except such rebate as may be allowed in accordance with the prospectus or tables of the Insurer.

2. Any person making default in complying with the provisions of this section shall be punishable with fine, which may extend to five hundred rupees.

Re: Extension of Geographical Area under Motor Policies Covering Rallies held outside India.

In response to a request received from an insurer, it has been decided that cover for rallies held outside India shall not be clubbed with the standard motor vehicle insurance policy issued for India.

However, insurance for rallies held outside India may be granted by insurers as a separate cover by charging appropriate premium after due assessment and consideration of the laws and situations applicable in the country where the rally is held.

Insurers are requested to take note and advise their operating offices suitably.

Re: GR.17 of India Motor Tariff - Transfers - Time Limit for Transfer of Package Policy

In response to a query received from an insurer regarding the time limit provided under GR17 of India Motor Tariff in respect of transfer of Package Policy it is clarified that the ‘Liability Only’ portion of the cover is deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of transfer. That is the transfer of ‘Liability Only’ cover is automatic irrespective of the type of policies and the 14 days’ time period mentioned in the tariff is more relevant to ‘Package Policy’(i.e Own Damage section).

Insurers are requested to take note and advise their operating offices suitably.

Ref.:IMT/04/05 Date : June 17, 2005

Re : Long Term Act Only Policy for Two Wheelers

This refers to our circular Ref. IMT/01/05 dated May 17, 2005. Listed below are the clarifications to the queries raised by insurers :-

Query 1 :

Period of cover on the policy/certificate :

The period of cover mentioned as “ from ------- o’clock on ------- to the date of cancellation of registration of vehicle”, gives an impression that the cover is available for an indefinite period. Please clarify.

Clarification :

The period of cover to be mentioned on the policy/certificate shall be as under :-

“From ------------to-----------------”. (Mention the date of expiry of the registration. For renewal of the cover following extension of the initial registration period, annual policy will have to be issued – refer Query 2).

Query 2 :

What is the premium to be charged if the validity of the registration is extended beyond 15 years ?

Clarification :

If the validity of registration is extended beyond 15 years, annual Package/Liability Only policy shall be issued charging full annual premium for every year.

Query 3 :

What is the premium to be charged if the cover is required for less than 3 years ?

Clarification :

For the first renewal of an existing policy falling due on or after 1.7.05, if the residual validity of registration of the two wheeler is less than 3 years, insurer shall issue annual Package/Liability Only policy charging full annual premium.

Query 4 :

Can TPPD cover in excess of Rs.6,000/- be provided under Long Term Act Only Policy ?

Clarification :

TPPD in excess of Rs.6,000/- cannot be provided under the Long Term Act Only Policy. It can be granted under the annual Package (minus Act Liability) policy or the annual Liability Only (minus Act Liability) Policy.

Query 5 :

Can PA cover to Owner Driver be granted under Long Term Act only Policy?

Clarification :

PA cover to Owner Driver cannot be granted under the Long Term Act Only Policy. It is to be granted under the annual Package (minus Act Liability) policy or the annual Liability Only (minus Act Liability) Policy.

Query 6 :

What wordings are to be used for annual Package Policy or the annual Liability Only Policy where a Long Term Act Only Policy has been obtained ?

Clarification :

Where Long Term Act only policy has been obtained, the following modification shall be made to the annual Package (minus Act Liability) policy or the annual Liability Only (minus Act Liability) Policy issued by the insurer :

Package Policy :

Section II-1(i) :

The present wordings shall be replaced by the wordings “as covered in the Long Term Act Only Policy No……………dated …………..issued by (name and address of the insurance company) for the period from ………….to…………”

Section II-1(ii) :

Limit of Liability under Section II-1(ii) shall be modified to state only the enhanced TPPD cover in excess of Rs.6,000/- and PA cover for Owner Driver

Liability Only Policy :

Item No.1(i) The present wordings shall be replaced by the wordings “as covered in the Long Term Act Only Policy No…………….dated……………issued by (name and address of the insurance company) for the period from…………………to……………….”

Item No.1(ii) shall be modified to cover the enhanced TPPD cover in excess of Rs.6,000/- and PA cover for Owner Driver.

Query 7 :

What type of proposal forms are to be used for annual Package policy or the annual Liability Only policy where a Long Term Act Only policy has been obtained ?

Clarification :

Where a Long Term Act Only Policy is obtained the standard proposal form given in the tariff shall be suitably modified by the insurer for use in connection with the issue of the annual Package Policy or the annual Liability Only Policy.

Insurers are requested to take note and advise their operating offices suitably.

Secretary

Sub : India Motor Tariff - Statistical Codes.

Further to TAC Circular IMT/01/05 dated 17th May, 2005 regarding the introduction of Long Term Act Only Policy for Two wheelers with effect from 1st July, 2005 and the subsequent clarifications vide Circular IMT/04/05 dated 17th June, 2005, insurers are requested to incorporate the following details under Policy code - Section 8 of the revised India Motor Tariff (page 230).

Sr.No

In Form

Premium Codes

(3)&(23)

Policy Code

Description

Long Term Act Only Policy for two wheelers

Insurers are requested to take note and advise their operating offices suitably.

Insurers attention is invited to TAC’s Circular IMT/01/05 dated 17th May, 2005 regarding the introduction of Long term Act Only Policy for Two Wheelers with effect from 1st July, 2005 and clarificatiory circulars dated 17th June, 2005 and 24th June, 2005.

It has been decided by the TAC Board that the implementation of the Long Term Act Only Policy for Two Wheelers with effect from 1st July, 2005, be kept in abeyance.

Insurers are requested to take note and advise their operating offices suitably.

Insurers are requested to incorporate the following details as the last item in 'Class Code' (page no.231) under Section -8, Statistical Codes, of India Motor Tariff.

Sr.no. In Form	Class Code	Description
(4) & (24)	28	Stand Alone Trailers

Insurers attention is drawn to GR.30 of the India Motor Tariff which provides as under:-

Vehicles (other than those covered under Motor Trade policies) fitted with anti-theft devices approved by Automobile Research Association of India (ARAI), Pune and whose installation is duly certified by any of the Automobile Associations mentioned in GR.28 above are eligible for a discount of 2.5% on the OD component of premium subject to a maximum of Rs.500/-.

For mid-term installation of anti-theft device approved and certified as above in the vehicle insured, pro-rata proportion of the premium discount calculated as per tariff provision for the unexpired period of the policy is to be allowed."

It has been brought to our notice that some insurers are granting discounts on Own Damage (OD) premium in respect of anti-theft devices which are not approved and not installed as per GR.30.

TAC has invited the suggestions of CEOs of all insurers for amendments/modifications in the present norms as provided in GR.30. Pending decision of the TAC Board for amendments/modifications to the present norms, insurers are advised to ensure that GR.30 provisions are strictly complied with.

Insurers are requested to take note and advise their operating offices suitably.

Re: Endorsement IMT - 16 PA cover to unnamed passengers other than insured and the paid driver and cleaner.

Insurer’s attention is drawn to Endorsement IMT - 16 of India Motor Tariff on page 196. It has been decided to delete the words "but not driving" from the first para (9th line) of the above endorsement.

"In consideration of the payment of an additional premium it is hereby understood and agreed that the insurer undertakes to pay compensation on the scale provided below for bodily injuries hereinafter defined sustained by any passenger other than the insured and/or the paid driver attendant or cleaner and/or a person in the employ of the insured coming within the scope of the Workmen’s Compensation Act, 1923 and subsequent amendments of the said Act and engaged in and upon the service of the insured at the time such injury is sustained whilst mounting into, dismounting from or traveling in the insured motor car and caused by violent, accidental external and visible means which independently of any other cause shall within three calendar months of the occurance of such injury result in."

Insurer’s attention is drawn to item 3(b) of TAC circular no. IMT/08/2002 dated 16th December 2002, wherein GR.42- Use of CNG / LPG fuel -appearing on page 25 of India Motor Tariff had been amended / modified.

It has been decided to insert the word "Bi fuel system" between the words "CNG / LPG engine" and "as approved" in the first line of amended/modified GR.42(b).

"Where the vehicle is fitted with only CNG / LPG engine or Bi fuel system as approved by RTA and the value of the CNG / LPG kit is not separately available, 5% extra is to be charged on Own Damage Premium"

Further to circular dated IMT/05/2003 dated 7th August, 2003 insurers are requested to incorporate the following details in Annexure -1 Make Code under Section - 8 of India Motor Tariff as new items below the names of manufacturers mentioned on the respective pages.

Annexure -1 (Cars )

Vehicle Make Code	Vehicle Description
	Fiat (03)
03036	Palio Sport NV
03037	Palio 1.9 D EL NV
03038	Palio 1.9 D ELX NV
03039	Palio 1.9 D ELX SP NV
03040	Adventure 1.6 Sport
03041	Palio 1.2 EL NV
03042	Palio 1.2 EL PS NV
03043	Palio 1.2 ELX NV
03044	Palio 1.2 SPORT NV
03045	Palio 1.6 Sport
03046	Palio 1.9 D EL PS
03047	Palio 1.9 D ELX PS
03048	Petra 1.2 EL (Petrol)
03049	Petra 1.6 EL (Petrol)
03050	Petra 1.9 EL (Diesel)
03051	Petra 1.9 ELX (Diesel)
	Ford (04)
04017	Endeavour 4x2
04018	Endeavour 4x4
04019	Ikon 1.3 CLXi (Flair)
04020	Ikon 1.6 Sxi
04021	Fusion
04022	Fusion Plus
04023	Fusion Plus (ABS/EBD)
04024	Ikon 1.3 Flair
04025	Ikon 1.6 EXi
04026	Ikon 1.8 EXi
04027	Ikon 1.8 ZXI
04028	Mondeo 2.0 Petrol
	General Motors (05)
05043	Corsa sail 1.4
05044	Corsa sail 1.6
05045	Corsa 1.4 GSI
05046	Corsa 1.6 GLS
	Hindustan Motors (06)
06034	Ambassador 1800 BU Std
06035	Ambassador Grand BE AC PS
06036	Ambassador Grand 2.0 BE AC PS (D)
06037	Mitsubishi Lancer SL Xi
06038	Mitsubishi Lancer SL Xd
06039	Ambassador Avigo 1.8 BU AC (P)
06040	Ambassador Avigo 2.0 BU (AC) (D)
06041	Mitsubishi Lancer 1.5 LXiV
06042	Mitsubishi Lancer 1.5 LXi
06043	Mitsubishi Lancer 1.8 LXi
06044	Mitsubishi Lancer 2.0 LXdv
06045	Mitsubishi Lancer 2.0 XLd
06046	Pajero 2.8 GLX (4X4)
06047	Nissan X - Trail Comfort (4X4)
06048	Nissan X - Trail Elegance (4X4)
	Honda (07)
07013	New City Exi
07014	New City GXI (M/T)
07015	New City GXI CVT
07016	CR-V
07017	City Exi
07018	City GXI(M/T)
07019	City GXI CVT
07020	Accord V6
07021	New CR-V (M/T)
07022	New CR-V (A/T)
	Hyundai (08)
08025	Santro Xing XE 1.1
08026	Santro Xing XP 1.1
08027	Santro Xing XS 1.1
08028	Sonata S 20
08029	Terracan 2.9 CRDi Turbo
08030	Santro Xing XK 1.1
08031	Santro Xing XL 1.1
08032	Santro Zing XG 1.1
08033	Santro Xing XO 1.1
08034	Santro Xing Automatic
08035	Getz GLE
08036	Getz GLS
08037	Getz GLX
08038	Accent GLE
08039	Accent Viva CRDi
08040	Elantra GT
08041	Elantra GLS
08042	Elantra CRDi
08043	Sonata Embera M/T
08044	Sonata Embera A/T
08045	Terracan 2.9 CRDi Turbo (4X4)
08046	Tucson 2.0 CRDi (4X4)
	Mahindra (09)
09018	Bolero Invader GLX
09019	Bolero Invader DI
09020	Bolero Invader DI DX
09021	Bolero XL DI Turbo
09022	Bolero XLS
09023	Scorpio 2.6 Turbo (Std) CRDe
09024	Scorpio 2.6 DX CRDe
09025	Scorpio 2.6 Sportz CRDe
09026	Scorpio 2.6 SLX CRDe
09027	Scorpio 2 WD Rev 116 (P)
	Maruti (10)
10088	800 Standard
10089	800 AC
10090	800 DX AC
10091	Grand Vitara XL-7
10092	Omni 8 seater
10093	Omni 5 seater
10094	Alto Std
10095	Alto LXi
10096	Swift LXi
10097	Swift VXi
10098	Swift ZXi
10099	Baleno LXi
10100	Baleno VXi
10101	Versa DX Std ( 5 seater )
10102	Grand Vitara XL-7 (4X4)
	Telco (11)
11033	Sumo SA (EGR)
11034	Safari EXI (4X2) Petrol
11035	Safari EXI (4X4) Petrol
11036	Sumo Victa LX EGR FF
11037	Sumo Victa EX EGR FF
11038	Sumo Victa GX EGR
11039	Sumo Victa GX Turbo
11040	Sumo Victa Spacio Gold
11041	Safari DiCOR LX (4X2)
11042	Safari DiCOR LX (4X4)
11043	Safari DiCOR EX (4X2)
11044	Safari DiCOR EX (4X4)
11045	Safari DiCOR VX (4X2)
11046	Safari DiCOR VX (4X4)
11047	Indica LEiV2
11048	Indica LGI V2
11049	Indica DLG
11050	Indigo GSX
11051	Indigo SX
11052	Indigo Marina GLE
11053	Indigo Marina GLS
11054	Indigo Marina GLX
11055	Indigo Marina LS TDI
11056	Indigo Marina LX TDI
	Toyota (12)
12016	Qualis RS E3 (Diesel)