Classification of vehicles for insurance purpose
The vehicles are for the most part separated in the accompanying four classifications for the motivations behind insurance:
(1) Private cars.
(2) Commercial vehicles which allude to a mechanically determined vehicle utilized for business or exchange purposes. They might be traveler vehicles, merchandise vehicles or tractors.
(3) Trade vehicles.
(4) Motor cycles.
Rates are declared for every classification, and for rate-production purposes assist classification based on the utilization to which the vehicle is put is made inside those classes.
Tariff and Non-Tariff Offices
The insurance companies are of two kinds. Those which are individuals from the Motor Tariff Association are called ‘Tariff Offices’ and those which are not the individuals from the Tariff Association are known as ‘Non-Tariff Offices.’ Most of the companies are duty workplaces. The top notch rates and policy states of all the levy workplaces are managed by the Tariff Association. Obviously there are no regional points of confinement and limitations for the driving of vehicles in any division however the insurance must be influenced in a specific division. Additionally a levy office in a specific locale can protect a vehicle in some other area yet the premium and the conditions must be represented by the Tariff Association of the district in which the vehicle is.
Kinds of Inclusion
Every vehicle policy can be isolated into the accompanying three composes:
(1) Act Policy
An Act Policy covers all dangers for which a policy is essentially to be taken by the proprietor of a vehicle under the Motor Vehicles Act. As indicated by this Act, a policy must be taken to cover any risk which might be brought about by the guaranteed in regard of the passing of or substantial damage to any individual caused by or emerging out of the utilization of the vehicle in an open place. The degree of the sum to which a policy ought to be taken is additionally determined in the Act.
Again a policy of insurance is additionally important to cover any obligation emerging under the arrangements of the Workmen’s Compensation Act 1923, in regard of the passing of or substantial damage to any paid worker occupied with driving or generally in participation on or being carried in an engine vehicle. Every one of these arrangements together with the exemptions are imprinted on the policy itself. It ought to be seen that insurance is mandatory as to individual damage just and not as to harm to property.
(2) Third Party Policy
This policy covers not just those outsider dangers for which an insurance policy is lawfully important as clarified above yet in addition covers such dangers for which the guaranteed might be held subject under different laws, for example, Fatal Accidents Act 1855 and customary law. Here the policy incorporates likewise the harm to property of outsiders for which the guaranteed is at risk. The guarantor embraces to pay notwithstanding the remuneration, all aggregates including inquirer’s expenses and costs for which the safeguarded turns out to be legitimately at risk.
(3) Comprehensive Policy
An extensive policy covers a wide assortment of dangers under single inclusion. There are some exceptionally basic dangers which alone are secured by this policy and if some other hazard is to be secured it very well may be added to the dangers protected after the installment of additional premiums. An exhaustive policy for private cars typically covers the accompanying dangers:
(a) Loss of or harm to car.
The car including fundamental Lamps, Tyre’s, and Accessories consequently is guaranteed against misfortune or harm by inadvertent outside means, fire, blast, self-start, lightning, ice, thievery, housebreaking, burglary, vindictive act and in travel by street, rail, inland conduit, lift or lift.
(b) Removal charges
In regard of evacuation of the car to and from the premises of the closest repairers for any mischance up to a specific utmost.
(c) Third gathering obligation, i.e., dangers shrouded in outsider policy.
(d) Costs and costs brought about with the assent of the company.
(e) Repair charges for the car because of mischance for which company is subject upto a specific farthest point.
(f) Medical Expenses up to a specific farthest point acquired regarding wounds supported by the safeguarded or any tenant of the car.
Notwithstanding the above dangers, the guaranteed can likewise anchor extra advantages in the wake of paying additional premiums. These advantages might be (I) demise or substantial damage of the safeguarded alone or together with spouse, and of anonymous travelers, (ii) mobs and strikes, and so forth., (iii) loss of mats, coats or gear by robbery, burglary or f.re, and so on.
Approaches identifying with business vehicles are not as extensive as those by which private cars are protected. The fundamental distinction being the exclusion of individual mischance benefits and the confinement of outsider repayment in regard of harm to property to Tk. 20,000 on any one mischance. The arrangements on engine cycles are issued on comparative lines as the cars.