A clause in the third party section of a private car policy permitting the insured to drive private type cars or motor cycles not belonging to him and not hired to him under a hire purchase agreement. If the insured parts with the insured car, the extended indemnity ceases to apply as the main indemnity then terminates. Occasionally, as an underwriting measure, the insurer may delete the extension.
Insurance Encyclopedia
Driving Other’s Car Provision for Motor Insurance
It may so happen that the registered owner in whose name the policy has been issued was driving another car not belonging to him at the time of accident and the claim has been lodged for damage to this car or for personal injuries to a Third Party under the “Driving Other Car” Clause. In India the owner of the car remains liable for the own damage and third party claims, if the person driving the accidented vehicle, was doing so with due permission of the registered owner. In India we do not have any provision of insurance for “driving other’s car” liability insurance. It may cause a peculiar situation where an uninsured vehicle is driven by a non-registered owner in contravention of the Third Party mandatory insurance resulting in criminal liability on person driving other car for accidental death, while authorizing to drive an uninsured car remains a civil liability under MV Act.
Drone
An aircraft, robot or other flying craft operated by remote control or onboard computers. Also referred to as Unmanned Aircraft Systems (UAS). Can carry small packages or cameras. Often used by realtors, claims adjusters, videographers, emergency services, and many other professions.
Drop down cover
An excess layer, umbrella liability policy or excess of loss treaty that lowers, i.e. drops down, its excess point if the limits of the underlying layer or retention have been exhausted. ‘Drop downs’ are subject to annual aggregate limits. The insured/reinsured may be able to absorb a given retention level on one loss but additional losses need the added protection afforded by the drop-down. ‘Drop down’ covers may also pick up gaps in cover as may happen in umbrella liability policies and master global policies sitting over local policies. See TOP AND DROP.
Drop-Down (also known as Second Event Retention)
An approach to establishing the retention level in excess of loss reinsurance (usually catastrophe) under which the amount of the retention is reduced for the second (or subsequent) loss occurrence. The theory is that the ceding company can afford to retain a given retention level on one loss, but for additional loss(es) needs protection over the lower retention.
Drug formulary
List of prescribed drugs recommended by a managed care plan and dispensed by participating pharmacies to members of the plan. It is periodically reviewed and modified. See the three types—open, closed, and restricted formularies for information. See formulary .
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A schedule of prescription drugs approved for use which will be covered by the Health Insurance Plan of the insurer and dispensed through participating pharmacies.
Drug formulary (Health Insurance)
A list of approved prescription medications that the plan will cover and that will be distributed from affiliated pharmacies.
Drug maintenance list
See: adjusted drug benefit list .
drug price review (DPR)
Weekly update of drug prices at average wholesale price (AWP) that is from the American Druggist Blue Book . See maximum allowable cost list .
Drug price review (Health Insurance)
A process wherein the American Druggist Blue Book is used to establish the wholesale cost of medication. This information is then used to settle on a maximum drug price.