Study of Motor Insurance & Property Insurance Contracts

8/13/2019 Study of Motor Insurance & Property Insurance Contracts

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Group Member Ali Naqvi

Hina Razzaq

Arslan NawazJawaria Abrar Aqsa Muzaffar

Qaiser Ayub


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Adamjee Insurance Company Ltd

Motor Insurance &Property InsuranceContracts


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Parts of Contract

1

2

3

4

5

6

Declarations

Definitions

Insuring agreement

Exclusions

Conditions

Miscellaneous provisions


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Declarations - identifies who is an insured, the insured'saddress, the insuring company, what risks or property

are covered, the policy limits (amount of insurance), anyapplicable deductibles, the policy period and premiumamount.

Definitions - define important terms used in the policylanguage.

Insuring agreement - describes the covered perils, orrisks assumed, or nature of coverage, or makes somereference to the contractual agreement between insurerand insured. It summarizes the major promises of theinsurance company, as well as stating what is covered.

Parts of Contracts


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Exclusions - take coverage away from the Insuring Agreement by describing perils, hazards or lossesarising from specific causes which are not covered bythe policy.

Conditions - provisions, rules of conduct, duties andobligations required for coverage. If policy conditions are

not met, the insurer can deny the claim. Miscellaneous Provisions cancelation, subrogation

clause and their requirement

Parts of Contracts


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Motor Insurance Contract


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Motor Insurance ensures that the owner of vehicle isprotected from financial losses, caused by damage ortheft to the vehicle and third party liability.

What is Motor Insurance?


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Period of insurance Insured Insurer Insurer and insured

address Geographical area Premium amount

Decelerations In ContractInformation about insurer, insured and insured car specifications.Like

Car manufacturedcompany

Model no Engine no Chassis no

CC no Body type Color of car


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Adamjee comprehensive motor insurance

policy gives you the maximum coverage.The major scope of the cover includes: Loss or Damage Due To (Section 1) Third Party Liability (Section 2) Medical expenses (Section 3)

Coverage Insuring agreement


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Accidental means Fire external explosion, Self ignition Lightning, Flood, Hail, Wind, Tornado Convulsion of nature Theft & Burglary house breaking Malicious Act Whilst in transit (Road & Rail) Riots & Strikes Terrorism (Optional)

CoverageLoss or Damage Due To:


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Property Damage Bodily Injury or death of any person (Section 95 of motor vehicles

act 1939) Cost and expense written consent Indemnification to authorized driver

Not indemnified to non owner or non hire purchaser of motor car

Coverage

Third Party Liability & Medical Expenses

Medical expensesIn case of violent accident external and visible mean company will pay

medical expenses which is not exceeded by 350Rs .

Third Party Liability


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Losses incurred outside geographical area of Pakistan Consequential loss depreciation wear and tear

Driven by unauthorized driver Mechanical or electrical breakdown failures or breakage Damage to Tyres and Battery unless the Motor Any loss or liability arising out by

Radiations or radio activity from nuclear

Nuclear waste Nuclear weapons

Exclusion


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Company is not liable to loss or damage of Television Radio Tape recorder Record changer

A.C

ExclusionsSpecial loss


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Notice of loss, assistance and information shouldprovided to company in case of loss.

Company entitled for claim settlement. Company can replace, repair or pay cash to damageof car or its parts.

Reasonable steps should be safeguard against loss. Company can cancel policy after 7 days notice in case

non payment of premium. Difference of claim settlement should be on court of

attributor.

Conditions


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Time Period RateLatest modal but not older than 6 months 5%

Older than 6 months but no exceeded 12 months 10%





Older than 60 months 60%

ConditionsDepreciation clause

Event of claim following rate of depreciation will be applied


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1 claim inprecceding

year ofinsurance

Schedule of Loading


year ofinsurance


year ofinsurance

4 claim in

preccedingyear of

insurance

10%B.P

20%B.P

30%

B.P

40%B.P


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Property Insurance Contract


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Insurance policy provides compensation to the insuredperson or firm in the event of damage to the propertyinsured (i.e. buildings, stock, machinery and othercontents) caused by fire, lightning.

What Property insurance is?


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+1500Like

Property Insurance


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Period of insurance insurer name Insured name Insurer and insured

address Geographical area

Decelerations In ContractInformation about insurer, insured and insured machinesspecifications. Like

Machine manufacturedcompany

Model no Engine no Capacity


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The insurance policy broadly covers losses due to: Physical loss or damage due to defect in casting and material.

Faulty design Faults at workshop Or in erection. Bad workmanship Lack of skills Carelessness Shortage of water in boilers. Physical explosion Tearing apart on account of centrifugal force Strom Short circuits

Insuring agreement Coverage


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Atmospheric Disturbance (Like Earthquake, Fire, Lightning andFlood)

Chemical Explosion Theft / Burglary Loss due to which supplier/contractor responsible by law for

damages. Loss of or damage of exchangeable tools (Wires, ropes etc) Riot and Strike Gross negligence Losses arising out of War and War like situations Nuclear reaction, radiations or radioactive etc.

Exclusions


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Observance and fulfillment o for this policy truthstatement and answers in questionnaire and proposal

made by insured and condition precedent must bemention

Schedule shall be deemed to in corporated and part ofpolicy used in contract including the schedule specific

meaning can bi attached in any part of policy Insured shall at his own expense take all reason able

proportion or reasonable recommendation .insurerprevent losses or damage as per requirement and

manufacturer s recommendation

Conditions


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Memo 1 Sum Insured

Policy that sum insured is equal to the cost ofreplacement of insured machinery by new machinery ofthe same kind and capacity init cost of replacementincluding

Conditions Provisions


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Memo 2 Basic of indemnity(A) In case of damage insured item can be repaired

insurers shall pay expenses necessarily restore todamaged machine state of serviceability , cost ofdismantling and effecting the repairs , fright from repair

shop ,custom duties . if repair made by insured at workshop , the insurers pay

the cost of material ,wages and reasonable % to coveroverhead charges



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No deduction shall be made for deprecation or partreplaced ,value of salvage shall bi taken to the account .

Memo 2(B)

Insured item is destroyed insurers shall pay the actualvalue of item before the loss occurs, Charges forordinary fright and custom duties.



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Right to inspect and examine the risk Provide information and details risk

Precautions should be taken by insured at its own expense If notice of loss is not given to insurer till 14 days then loss

should not be indemnified Attributor clause Umpire clause Policy can be terminated by the request of insured at any time Insures shall not be liable to pay any interest other than

interest for default

Miscellaneous Provisions


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Premium payment can be made through cash, cheque,pay order, demand draft, telex transfer to the concerned

Adamjee Insurance branch.

Premium Payment Method


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I have onequestion


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Study of Motor Insurance & Property Insurance Contracts

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