This form covers, ‘Act Liability” and ‘Personal Accident Risk to Owner/Driver.’ Liability only policy is called Standard Form for “Liability Only” policy. This form applies uniformly to all classes of vehicles, whether Private Cars, Commercial Vehicles, Motor Cycles or Motor Scooters, with suitable amendments in “Limitations as to Use”, “Driver Condition” and some specific Conditions. The Authority has prescribed proposal forms for third party ‘Liability Only” policy for private car, two wheelers and commercial vehicles.

This cover is normally offered by insurers for vehicles over 7 years, prohibited for Class D (Miscellaneous and Special Type) vehicles.

The new system pin points pedestrians, highlighting them on a dashboard display. Variant of system display the direction the pedestrian is moving. As the distance closes between pedestrian and vehicle, a warning appears on the night vision monitor as well as the head up display on the windshield if so equipped.

Package policy form provides wider cover for ‘own damage,’ ‘Act Liability’, and P.A. to owner/river with suitable modifications based on the class of vehicle covered. It can also be extended to cover additional liabilities such as liability employees or the insured who may be travelling in or driving the employer’s cars, augmented Third Party Property Damage Liability, etc. Insurers could, restrict the cover under the Own damage Section of Package Policy without reduction in premiums or increase the premium. However, ‘Liability only’ cover cannot be modified.

In December 2006 IRDA issued direction that all the General Insurers operating in India will collectively participate in a pooling arrangement to where in all motor third party insurance business. The GIC was nominated as the Administrator of the Pooling Arrangement. The pool was made operational w.e.f. 1st April 2007 whereby (01) The GIC’s share would b the statutory cession received by it (01) All other members will cede to the pool in proportion to their market share of the Gross Direct Premium underwritten in India (03) The General Insurance Council shall appoint a committee to lay down detailed underwriting policies and procedures as well as detailed claims processing procedures. (04) The pool will handle only commercial vehicles covered by policies issued by all general insurance. (05) Since the motor third party business is expected to run on a “no profit no loss” basis, there shall be no ceding commission in respect of the business ceded to pool w.e.f. 1.4.2010. Earlier it was 10%.

The policy covers damage to any insured vehicle (including its accessories where thereon) the property of the insured or any member of the insured’s family or household caused by accidental, external and visible means and occurring in or on the premises. Section (ii) of the Policy covers legal liability.