Automobile Insurance and Its Operation

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Automobile Insurance and Its Operation


1.1 What is Automobile Insurance?

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:

Ø Property coverage pays for damage to or theft of your car.

Ø Liability coverage pays for your legal responsibility to others for bodily injury or property damage.

Ø Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these overages. If you’re financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

2.1 Auto Insurance Rights


You have the right…

• To receive a copy of your policy

• To receive all copies of forms and applications you or the agent sign

• Not to be discriminated against because of your race, national origin, beliefs, a physical handicap that does not impair nyour driving ability

Premium rights

You have the right…

• To a fair estimate (quotation) of premium,even though the actual premium may be

more or less than the quoted estimate

Claims rights

You have the right…

• To choose which shop will repair your car,unless this right is limited by your policy

• To a prompt and good-faith settlement offer, based on the terms of your policy

• To negotiate with the insurance company’s adjuster

• To use any arbitration procedures provided in your policy.

Renewal and cancellation rights

You have the right…

• To receive prior written notice if the insurance company decides to cancel or not renew your policy

• To a statement of the reasons for the cancellation or non-renewal

• To cancel your policy at any time —however, you may be subject to a fee or penalty if you cancel your policy mid-term

2.2 Auto insurance responsibilities

You have a responsibility…

• To fill out the insurance application with complete and accurate information

• To get a binder after you have signed the application and use this as proof of coverage until you receive your policy and insurance identification (I.D.) card

• To report any changes that affect your policy, including changes in names, addresses, drivers or vehicles

Premium responsibility

You have a responsibility…

• To keep track of your policy renewal date or premium payment due date; most acompanies will send you a bill at least 30days before the renewal date

• To pay premiums by the due date, even if you are in a dispute with the insurance ompany… if you do not pay, the company has the right to cancel your policy.

Claims responsibility

You have a responsibility…

• To not file phony, padded, or fraudulent claims which ask the company to pay for

losses that did not actually occur; filing fraudulent claims is a crime and you could

land in jail

• To report promptly any accidents or other losses to the agent or company, following

the procedures in your policy

• To cooperate in the claims invest process by providing information requested by the company, agent, or adjuster

• To pay for any losses that exceeds the limits of your policy

• To immediately inform the company of any claims or lawsuits that could require

payment by your company.

2.3 Things to remember

You must give your insurer or the person who sells you the insurance as much information as you can about yourself and your vehicle. You must, for example, tell your insurer or the person who sells you the insurance about any driving convictions, any medical condition which could affect your driving ability, or any motoring accidents, even if you have not claimed on your insurance as a result. The information you give will affect the level of your premium, and whether your insurer will pay out on any claim

If you want to include anyone else on your insurance, you must give details about them to your insurer, or the person who sells you the insurance

You must tell your insurer, in writing, about any change in your circumstances, for example a change of occupation. You should tell them as soon as the change occurs, and not wait until it’s time to renew your policy

If you take out an insurance policy in your name, you should be the person who drives the vehicle most. If you take out motor insurance in someone else’s name because it’s cheaper, and they are not the main driver, the insurer can refuse to pay out on a claim

If the vehicle has been bought on credit, the finance company will usually insist that it is insured in the name of the person who has taken out the credit agreement.

Motor insurance policies normally run for a year. Your insurer does not have to send you a notice reminding you to renew, but most insurers do send out reminders

When you take out or renew motor insurance, you will get a cover note at first. This will be valid for 30 days or until you get a copy of the full insurance certificate. It is a criminal offence to drive without a cover note or full insurance certificate, so do not rely only on a telephone conversation where someone has told you that you are covered

You can cancel an insurance policy if you sell your vehicle, if it is stolen, or if it is written off. You should check your policy to see if you have a right to a refund of your premium

2.4 What is covered by a basic auto policy?

Your auto policy may include six coverages. Each coverage is priced separately.

1. Bodily Injury Liability

This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.

consider buying more than the state-required minimum to protect assets such as

your home and savings.

2. Medical Payments or Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accid It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely ent. It may also cover funeral costs.

3. Property Damage Liability

This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.


4. Collision

This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible , the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll also be reimbursed for the deductible.

5. Comprehensive

This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.

6. Uninsured and Underinsured Motorist Coverage

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.

Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian

2.5 Can I drive legally without insurance?

NO! Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don’t have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous.

If you’ve financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.

2.6 What if I lease a car?

If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage. You’ll need to buy these coverages in addition to the others that may be mandatory in your state, such as auto liability insurance.

2.7 How do I choose an insurance company?

There are many insurance companies, so choosing between them can be a challenge. Here are the main points to keep in mind when selecting an insurance company:


Not every company is licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there’s a problem.


Many companies sell insurance policies and prices vary greatly from one to another, so it really pays to shop around. Get at least three price quotes from companies, agents and from the Internet.

Financial Solidity

You buy insurance to protect you financially and provide peace of mind. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.


Your insurance company must have the ability to handle your claims fairly, efficiently and quickly. You may check a national claims database to see what complaint information it has on a company.


You should feel comfortable with your insurance purchase, whether you buy it from a local agent, directly from the company over the phone, or over the Internet. Make sure that the agent or company will be easy to reach if you have a question or need to file a claim.

2.8 How much coverage do I need?

Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits.

You may also consider purchasing an umbrella or excess liability policy. These policies pay when your underlying coverages are exhausted.

In addition to liability coverage, consider buying collision and comprehensive coverage. You don’t decide how much to buy. Your coverage reflects the market value of your car and the cost of repairing it.

2.9 What determines the price of one’s policy?

There are many factors that influence the price you pay for auto insurance.Your premium may be higher or lower, depending on:

2.10Driving record:

.The better your record, the lower your premium. If you’ve had accidents or serious traffic violations, you will pay more and vice versa.

The number of miles you drive each year :

The more miles you drive, the more chance for accidents. If you drive a lower than average number of miles per year, less than 10,000, you will pay less.

Where do you live? :

Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.

Your age. :

In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers.

The car you drive. :

Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car.

The amount of coverage :

Of course, like anything else, the more coverage you have, the more you pay. However, you may qualify for discou


3.1 How do companies establish the price of auto insurance?

The overall cost of auto insurance is affected by the costs of things the insurance

pays for:

• Medical care for persons injured in accidents

• Auto repair

• Theft & fraud

• Defending lawsuits against insureds

• Administrative expenses The company has the right to charge enough to recover the costs of the expenses shown above and make a reasonable profit.

3.2 How does the insurance company decide what rates to charge?

Each company has many variables. They are based on the company’s prediction of how much you and other drivers “like” you will cost the company by filing claims.

Statistics & rates

Insurance companies base their rates on statistics.

• The companies have analyzed statistical information about millions of drivers and they have identified characteristics of drivers who are more likely to have losses which the company would have to pay

• For rating purposes the company will group you together with other people whose age, sex, residence and driving experience are similar to yours.

High risk = High price

3.3 What is a “high risk” driver?

A “high risk” driver is one that the insurance companies believe has a high likelihood of having accidents.

You could be classified as a high risk for these reasons:

• Poor driving record (accidents, tickets) • Uninsured for more than 30 days

3.4 What else could make it harder to find Insurance?

• Poor credit information

• Inexperienced driver

• Occupation (example: pizza delivery)

3.5 Who insures high risk drivers?

Many insurance companies have a program or try to accommodate high-risk drivers.

High-risk drivers will pay more than drivers that are not classified as high risk.

There are also numerous companies that specialize in selling insurance to people that

other companies will not.



Policy no:

The Insurer:

The Insured: Name…


Business or Profession:

Period of insurance (a) from……..O’clock on … ……….to midnight on……

Any subsequent period for which the insured shall pay and the insurer shall agree to accept a renewal premium.

Geographical area: Bangladesh

The motor vehicle : Any of the following

Chassis no………………….. Engine no……………………………………..


Mark &


Make Type





Year of


Carrying capacity
Seating capacity

Including driver


Segregation of the estimated value: 1. Vehicle (Excluding glass item) TK

2. Glass item TK

3. Electrical appliance TK

4. Accessories TK

Limitation as to use

(a) Use solely social, domestic and pleasure purposes and foe the insured’s business.

(b) Use only for carrying own goods.

The policy does not cover use for hire or reward or for organized racing, pace making reliability trial or speed testing, carriage of goods (other than for samples)in connection With any trade or business or use of any purpose in connection with the motor trade.

Delete the words” carriage of goods (other than sample)”including wording under (a) above when policy will be issued to cover own goods


Driver’s clause:

Driver: Any of following

(a)The insured

(b)Any other person who is driving on the insured’s order or with his permission.

Provided that the person driving holds or had held and has not been disqualified from holding

An effective driving license with all the required endorsement thereon as per motor vehicles act and the rules made there under for the time being in force to driver the category of vehicle insured hereunder.

Limits of liability:

Under section-II-I(a) such amount as is necessary to meet the requirements of motor vehicle act 1991 effective from 3rd December 1991.

Under section-II-I(b) TK50000 in respect of one claim or series of claims arising out of one accident.

Date of signature of proposal premium tk

And declaration

Signed at on the day of 199 insurer

No claim bonus

In the event of no claim being made or arising under this policy during a period of insurance specified below immediately preceding the renewal of the policy the renewal premium for such part of the insurance is renewed shall be reduced as flows.

Reductions on own damage premium only

Period of insurance

No claim made or pending during the preceding year of insurance 30%

No claim made or pending during the preceding 2 consecutive years 40%

No claim made or pending during the preceding 2 consecutive years 50%

If the insurer shall consent to transfer of interest in this policy the period during which the interest was in the transferor shall not accrue to the benefit of the transferee. If more than one motor vehicle is described in the schedule the no claim bonus shall be applied as if a separate policy had been issued in respect of each motor vehicle.

No claim discount will only be allowed when the insurance is continuous. If the policy lapses due to non payment of renewal premium on or before this renewal date and a fresh policy is obtained within 30 days of the expiry of the previous policy. Then the no claim bonus earned in the previous policy shall be allowed.


Where an insured at the commencement of the current period of insurance was entitled to no claim bonus in the event of claims occurring thereafter in that period of insurance the no claim bonus at next renewal will be reduced by two steps for each claim until the basic premium is reached, which would then be the premium payable at renewal.


If the insured is not entitled to no claim bonus at the commencement of the current period of insurance and makes claims during that period of insurance the basic premium at next renewal shall be loaded in accordance with the under noted scale. After imposition of htr loading if an insured does not any claim during that policy year the basic premium only at next renewal will apply.

Period of insurance loading

One claim in preceding period of insurance 30% of basic premium

two claim in preceding period of insurance 40% of basic premium

three claim in preceding period of insurance 50% of basic premium


Whereas the Insured by a proposal and declaration dated as stated in the schedule which shall be the basis of this contract and is deemed to be incorporated herein has applied to the Insurer for the Insurance hereinafter contained and has paid or agreed to pay the premium as consideration for such insurance in’ respect of accident loss or damage occurring during the period of Insurance.


The insurer will indemnify the Insured against loss or damage to the Motor Vehicle and or its ^accessories whilst thereon.

a) by fire explosion, self ignition or lightning ;

b) by burglary housebreaking or theft;

c) by Riot and Strike including malicious and terrorism activities

d) by Earthquake (Fire and Shock Damage) ;

e) by Flood, Typhoon, Hurricane storm, tempest, Inundation, Cyclone, Hailstorm; Frost

f) by accidental external means

g) Whilst in transit by road, rail, inland waterway, lift, elevator or air;

Subject to a deduction for depreciation at the scale mentioned below in respect of parts replaced?

1. For all rubber, nylon, plastic parts type and Battery 50%

2. For all parts made of Glass Nil

3. All other parts.

AGE OF CAR % of Depreciation

Up to 6 month Nil

Between 6 months and 1 year 5%

Between 1 year and 2 years 10%

Between 2 year and 3 years 15%

Between 3 year and 4 years 25%

Between 4 year and 5 years 35%

Between 5 year and 6 years 40%

over 7 years 50%

No under Insurance shall be applied at the time of loss

The Insurer shall not be liable to make any payment in respect of :-

(a) Consequential loss, depreciation, wear and tear, mechanical or electrical breakdowns failures 01 breakages and

(b) Damage to Tiers and Glass items unless the Motor Vehicle is damaged at the same time when the liability of the insurer is limited to 50% of cost of replacement.

I Any accidental loss or damage suffered whilst the Insured or any person driving with the knowledge and consent of the Insured is under the influence of intoxicating liquor or drugs.

In the event of the Motor Vehicle being disabled by reason of loss or damage covered under this policy the insurer will bear the reasonable cost of protection and removal to the nearest repairers and of redelivery to the Insured but not exceeding in all Tk. 1000/- (one thousand) in respect of any one accident.

The Insured may authorize the repair of the Motor Vehicle necessitated by damage for which the insurer may be liable under this policy provided that :

a) The estimated cost of such repair does not exceed Tk. 500.07- (Five thousand)

b) The insurer is furnished forthwith a detailed estimate of the cost and

c) The Insured shall give the insurer every assistance to see that such repair is necessary and the charge reasonable.


The Insurer will indemnify the insured in the event of accident caused by or arising out of the use of the motor Vehicle against all sums including claimant’s costs and expenses which the insured shall become legally liable to pay in respect of

i) death of or bodily injury to any person but except so far as is necessary to meet the requirements of section 110 of the Motor vehicles Act 1991 the Insurer shall not be liable where such death or injury arises out of and in the course of the employment of such person by the Insured.

ii) damage to property other than property belonging to the insured or held in trust by or in the custody I or control of the insured.

2. The Insurer will pay all costs and expenses incurred with its written consent:

3. in terms of and subject to the limitations of the indemnity which is granted by this section to the insured the insurer will indemnify any driver who. Is driving the Motor Vehicle on the insured’s order or with his. Permission provided that such driver shall as though he were the insured observe fulfill and be subject to the terms exceptions and conditions of this policy in so far as they can apply.

4. In the even of the death of any person entitled to indemnity under this policy the. Insurer will in respect of the liability incurred by such person indemnify his personal representatives in the terms of and subject to the limitations of this policy provided that such personal representatives shall as though they were the insured observe fulfill and be subject to the terms exceptions and conditions of this policy in so far as they can apply.

5. The insurer may at own option (A) arrange for representation at any Inquest or Fatal Inquiry in respect of any death which may be the subject of indemnity under this Section and (B) undertake the defense of proceedings in any Court of Law in respect of any act or alleged offence causing or relating to any event which may be the subject of the Indemnity under this Section.


Nothing in this policy or any endorsement hereon shall affect the right of any person indemnified by this policy or any other person to recover an amount under or by virtue of the provision of the Motor Vehicles Act.

But the Insured shall repay to the insurer all sums paid by the insurer which the insurer would not have been liable to pay but for the said provisions.


(Applicable to all Section of the policy )

The insurer shall not be liable under this policy in respect of •.-

1. Any accident loss damage and/or liability caused sustained or incurred outside the Geographical Area.

2. Any claim arising out of any contractual liability.

3. Any accident loss damage and/or liability caused sustained or incurred whilst any Motor Vehicle in respect of or in connection with which insurance is granted under this policy is

a) Being used otherwise than in accordance with the Limitations as to Use.

b) Being driven by any person other than a Driver as stated in the Driver’s clause.

4. a) any accident loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising there from or any consequential loss.

b) Any liability of whatsoever nature.

Directly or indirectly caused by or contributed to by or arising from ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.

5. Any accident loss damage or liability directly or indirectly caused by or contributed to by or arising from ‘nuclear weapons material.

6. any accident loss damage and / or liability directly or indirectly or proximately or remotely occasioned by contributed to by or traceable to or arising out of or in connection with War, Invasion, the Act of foreign enemies, hostilities or Warlike operation (whether before or after declaration of war) Civil War, Mutiny,. Rebellion, Military or usurped power or by any direct or indirect consequences of any of the said occurrences and in the event of any claim hereunder the Insured shall prove that the accident loss damage and / or liability arose independently of and was in no way connected with or occasioned by or contributed to by or traceable to any of the said occurrences.


This policy and the schedule shall be read together and any word or expression to which a specific meaning has been attached in any part of this policy or of the schedule shall bear the same meaning wherever it may appear.

1. Notice shall be given in writing to the insurer immediately upon the occurrence of any accident or loss or damage .

2. No admission, offer, promise, payment or indemnity shall be made or given by or on behalf of the Insured without the written consent of the insurer.

3. The-insurer may at its own option repair reinstate or replace the Motor Vehicle or part thereof and/or its accessories or may pay in. cash the amount of the loss or damage and the liability of the insurer shall not exceed the actual value of the parts damaged or loss less depreciation plus the reasonable cost of fitting.

4. The Insured shall take all reasonable steps to safeguard the Motor Vehicle from loss and to maintain it must be taken by the insured.

5. The insurer may cancel the policy by sending seven days notice by registered letter to the insured at his last known address

6. If at the time any claim arises under this policy there is any other existing insurance covering the same loss, damage or liability the insurer shall not be liable to pay or contribute more than its rateable proportion of the loss, damage, compensation, costs or expenses.

7. If any difference shall arise as to the quantum to be paid under the policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of an arbitrator.

8. The due observance and fulfillment of the terms conditions and endorsements of this policy in so far as they relate to anything to be done or complied with by the Insured and the truth of the statements and answers in the said proposal shall be conditions precedent to any liability of the Insurer to make any payment under this policy.

3.9 Calculation of premium for different types of Autos

Private Car Model (Under Private Registration)

Particulars Comprehensive Risk Act Liability Risk
Up to 1300















Up to 1300













Endorsement no
1 2 3 4 5 6 7 8 9 10 11 12

Own Damage Premium

1. Premium on vehicle 2795 2873 2925 2990

2. Plus 2.65% on FIV 13250 13250 13250 13250


3. Total own damage 16045 16123 16175 16240

4. Plus 25% on own

Damage premium 4011 4031 4044 4060


5.Basic(for own damage)20056 20154 20219 20300

6. claim bonus – – – –


7.Net premium for own 20056 20154 20219 20300



8.Basic 150 250 350 450 150 250 350 450


(45/-per seat) ­- – – – – – – –

10.Driver 30 30 30 30 30 30 30 30

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­———————————————– ———————————

11.Gross total premium 20236 20434 20549 20780 180 280 380 480


12.Less.Roit&strike(0.50% on F.I.V)


(0.25% on F.I.V)

14.Less.Flood&cyclone(0.25% on F.I.V)

15.Total net premium 20236 20434 20549 20780 180 280 380 480

16.Add.15%vat 3035 3065 3082 3117 27 42 50 72

17.Total premium 23271 23499 23631 23897 207 322 430 552

COMMERCIAL VEHICLE ( Micro- Bus/ Mini Bus/Bus)

Particulars Comprehensive Risk Act Liability Risk


Ing 18




Ing 19

To 24




Ing 25

To 30




Ing 31

To 36


Over 36 seats Not


Ing 18




Ing 19

To 24




Ing 25

To 30




Ing 31

To 36


Over 36 seats
1 2 3 4 5 6 7 8 9 10 11 12

Own Damage Premium

1. Premium on vehicle 2814 3072 3621 4124 4410

2. Plus 2% on FIV 20000 20000 20000 20000 20000



3. Basic 22814 23072 23621 24124 24410

5. claim bonus


6.Net premium for own 22814 23072 23621 24124 24410



7.ACT LIABILITY 500 525 550 600 650 500 525 550 600 650

8.Passngers (per passengerTk 45/)

9.Driver 90 90 90 90 90 90 90 90 90 90

——————————————————— ——————————————

10.Gross total premium 23404 23687 24261 24814 25150 590 615 640 690 740


11.Less. Roit&strike(0.50% on F.I.V)


(0.25% on F.I.V)

13.Less.Flood&cyclone(0.25% on F.I.V)

14.Total net premium 23404 23687 24261 24814 25150 590 615 640 690 740

15.Add.15%vat 3511 3553 3639 3722 3773 89 92 96 104 111

———————————————————– ———————————————-

16.Total premium 50319 50927 52161 53350 54073 1269 1322 1376 1480 1591




Particulars Comprehensive Risk Act Liability Risk
3 Tons 4 Tons 5 Tons Edit No 3 Tons 4




Edit No
1 2 3 4 5 6 7 8 9 10

Own Damage Premium

1.Premium on vehicles 3078 3078 3078

2. Add. 20% of the basic for

each additional Ton after 3 tons – 616 1232


3078 3694 4310

3.Plus: 1.65 on F.I.V(500000/) 8250 8250 8250


4.Basic Premium for own damage 11328 11944 12560

5. claim bonus


6.Net premium for own 11328 11944 12560



7.Basic 1250 1250 1250 1250 1250 1250

8. Add. 20% of the basic for

each additional Ton after 3 tons – 250 500 – 250 500

9.Lum Sum 270 270 270 270 270 270

11 Paid Driver/Helper/Conductor

(Tk.30/ for each) 90 90 90 90 90 90

————————————— ——————————

12 Gross Net Premium 12938 13804 14670 1610 1860 2110


13.Less.Roit&strike(0.50% on F.I.V)


(0.25% on F.I.V)


(0.25% on F.I.V)

16.Total net premium 12938 13804 14670 1610 1860 2110

17.Add.15%vat 1941 2071 2201 242 279 317

——————————————– ———————————-

18.Total premium 14879 15875 16871 1852 2139 2427

Motorsed( Rickshaw/ Tempoo/Mushuk)

Particulars Comprehensive Risk Act Liability Risk
Up to 350















Up to 350













Endorsement no
1 2 3 4 5 6 7 8 9 10 11 12

Own Damage Premium

1. Premium on vehicle 1062 1200 1332 1872

2. Plus 1.9% on FIV 3800 3800 3800 3800

(TK200000) ————————————-

3.Own Damage Premium 4862 5000 5132 5672

4 claim bonus


5.Net premium for own 4862 5000 5132 5672



7.basic premium 244 266 289 334 244 266 289 334

8. Passenger road user

(45* No. of Seats) 315 315 315 315 315 315 315 315

9.Paid Driver/ Helper or Conductor

(30* No of D/H/C) 60 60 60 60 60 60 60 60

————————————- —————————————-

11.Gross Net Premium 5481 5641 5796 6381 619 641 664 709


12.Less Roit&strike(0.50% on F.I.A)


(0.25% on F.I.A)


(0.25% on F.I.A) —————————————– —————————————-

15.Total net premium 5481 5641 5796 6381 619 641 664 709

16.Add.15%vat 822 846 869 957 93 96 100 106

—————————————– —————————————17.Total premium 6303 6487 6665 7338 712 737 764 815

Motor Cycle

Sl. No Particulars Comprehensive Risk Act Liability Risk
Up to 150










Up to 150










1 2 3 4 5 6 7 8

Own Damage Premium:

1. Premium on vehicle 200 275 350

2. Plus 2.15% on FIV 1720 1720 1720

(TK1000000) ——————————————-

3. Basic 1920 1995 2070

4. Less. no claim bonus ———————————————

5. Net premium for own 1920 1995 2070



6. Act Liability 50 80 150 50 80 150

10.Passngers (45*1) 45 45 45 45 45 45

11.Owner 50 50 50 50 50 50

————————————– ———————————- —

12.Gross total premium 2065 2170 2315 145 175 245

13.Add.15%vat 310 326 347 22 26 37

—————————————– ——————————–14.Total premium 2375 2496 2662 167 201 282


4.1 How GEICO Investigates a Claim

When someone reports an accident to GEICO, a liability examiner is assigned to investigate the accident thoroughly to ensure that we handle everyone’s claim properly. This process is called the liability investigation.

Here are some of the steps we commonly follow to make sure we get all the facts about an accident:

The liability examiner reviews the insurance policy and the coverage in effect for the loss to determine what types of damage or injuries are covered.

The liability examiner attempts to contact everyone involved in the accident – drivers, passengers, witnesses, etc. – to get everyone’s account of the accident.

When there are conflicting versions of what occurred in the accident, the liability examiner conducts an in-depth interview with each person involved. These interviews help resolve disputes over the facts of the accident.

The liability examiner gathers and reviews additional relevant information, such as the police report, applicable state and local traffic laws, and photos of the scene and the vehicles involved.

Then the liability examiner considers all the facts, determines the cause of the accident, and handles the claim accordingly. We are always willing to re-examine our decision if new information about an accident becomes available.

4.2 Resolving claim disputes

Who decides comparative negligence?

Negligence is a legal issue and there’s no magic formula for dividing the responsibility

for an accident .When negligence is disputed, it takes a judge or jury to make conclusions that are legally binding. In reality, most decisions about negligence

in auto accidents are made by insurance.

companies and their claims adjusters.


Even if you accept the adjuster’s conclusion that you were partly at fault, you don’t have

to accept the adjuster’s numbers. If the company says you were 30% at fault, ask how that percentage was determined. You have a right to get this information!


If you’re involved an accident with another car and you can’t settle with the other driver’s company, you can submit the claim to your own company — but only if you

have collision coverage.

You pay your own collision deductible. Then your company settles the full claim with you and takes over (subrogates) your claim against the other company.

If your company collects from the other driver’s company, it will refund your

deductible minus an amount equal to the percentage of your negligence.

Who hit whom?

When the only evidence is your word against the other driver’s

word, there’s only one place to settle who pays… in court!

Comparative negligence

Sharing fault and sharing expense

This law says the responsibility (fault) for an accident can be shared. It helps determine

how much you can collect from the other driver or the insurance company.


If a traffic accident happens because you do not use the amount of care that could

be expected of a reasonable and prudent person under the circumstances, you are considered negligent.

Shared negligence

“Whose fault was it?” That’s one of the first questions after an accident.

• It’s clear the other driver ran into you… in fact, the other driver got a ticket

• But that doesn’t automatically mean the other driver was completely at fault

Under comparative negligence law, the other driver can get a ticket… but if you could

have reasonably done anything to avoid the accident, you may have to share the

negligence and the expense for damages.

Investigating the claim

When you file a claim against the other driver’s insurance, the company will want

to determine whether you should share the blame. The company will ask questions

such as:

• Did you see the other car before its werved into your lane

• If you hadn’t been tuning the radio could you have gotten out of the way

• If you had been wearing a seat belt would your injuries have been as bad

• Was your car illegally parked?

The adjuster:

• Your first stop; adjusters evaluate damage and make settlement offers

The claims supervisor:

• Your next stop if you believe the adjuster’s position is unreasonable or unfair

Appraisal or arbitration:

• Your policy provides for one or the other if the claims supervisor was unable to

satisfy your concern

• Written complaints are investigated to determine whether the company and agent have acted improperly

• Please note: the Department cannot settle factual disputes over who was at fault or how much the damage is worth

Small Claims Court

• Your county small claims court can settle disputes involving $3,000 or less. In a typical case, you would sue the other driver, not his or her insurance company.

Private Attorney

• Consult an attorney whenever you need information about your legal rights and remedies.

4.3 How to make a claim if your car has been stolen

If your car has been stolen, tell your insurer and the police immediately. Your insurer will wait a few weeks before settling your claim to allow time for the car to be found. Check your policy to see whether it covers the cost of hiring another car during this time. If you were paying your premium by instalments, you may have to carry on paying, even though you have no vehicle to insure. If your car is found after your claim has been settled, it will belong to your insurer. If your car is not found, your insurer will offer to pay you the market

value of the car, which is the amount you could have sold it for before it was stolen. This payment may bring your policy to an end, depending on the policy. You will not have the rest of your premium refunded, unless this is included in your policy. If you are not satisfied with the offer, try to get evidence that the car is worth more, by using car price guides or prices of similar vehicles in local papers. If your negotiations fail, you may wish to take further action. For information on how to take further action, see How to make a complaint in this fact sheet.

4.4 How to make a claim if your car has been in an accident

If you have an accident:

never admit that it was your fault at the scene of the accident, as this could make your policy invalid

exchange names, addresses, and insurance details with the drivers of the other vehicles involved, and get the details of any independent witnesses. If someone refuses to give you details about themselves or their insurance, your insurer may be able to trace them through the registration number of their car

tell your insurer about the accident straight away, even if you do not intend to make a claim. If you do not make a claim for the accident, you will not risk losing your no claims bonus

if someone has been injured you must produce your insurance certificate (or cover note) to a police officer or anyone else with reasonable grounds for wishing to see it. If you cannot do this