WHO CAN AVAIL TRADE POLICY
• MOTOR VEHICLE DEALERS
• MOTOR VEHICLE REPAIR/SERVICE CENTRES
• ANYBODY
IN MOTOR VEHICLE BUSINESS
Motor Trade Policies
• 3 Types of Policies
• MOTOR TRADE-ROAD TRANSIT RISKS POLICY
• MOTOR TRADE ROAD RISKS ONLY POLICY
• MOTOR TRADE INTERNAL RISKS POLICY
ROAD TRANSIT POLICY
• MOTOR VEHICLE TRAVELLING ON ITS OWN POWER
• POLICY- STD COMMERCIAL VEHICLE POLICY WITH DELETION OF
NCB CLAUSE & SEC. IV ( P.A COVER)
• SEPARATE POLICY OR DECLARATION POLICY CAN BE ISSUED.
• COVERAGE- LIMITED TO TRANSIT FROM SPECIFIED POINT TO
SPECIFIED POINT.
FEATURES…
• PERILS COVERED/EXCLUSIONS-AS PER STD. MOTOR PACKAGE
POLICY FOR COMMERCIAL VEHICLES.
• DEPRECIATION- AS PER STANDARD PACKAGE POLICY
• DELETION OF 50% LIMITATION CLAUSE
FOR DAMAGE TO TYRES
ON PAYMENT OF EXTRA PREMIUM.
• IDV- SAME RULE AS APPLICABLE TO STD MOTOR PACKAGE
POLICY.
MOTOR TRADE ROAD RISKS
POLICY
BASIS OF POLICY- 1. TRADE CERTIFICATE BASIS
2. NAMED DRIVER BASIS.
TRADE CERTIFICATE- ISUUED AS PER RULE 35 OF
CENTRAL MOTOR VEHICLES
RULES.
PERIOD OF VALIDITY- 12 MONTHS
NUMBERING OF T.C- AB- STATE CODE
12- DISTRICT CODE
TC1- TRADE CERTIFICATE NO.
RULE-39 OF CENTRAL MOTOR
VRHICLES RULES
Trade Certificates
• SHALL NOT BE USED ON MORE THAN ONE VEHICLE AT A TIME.
• SHALL NOT BE USED UP ON ANY VEHICLE OTHER THAN VEHICLE
IN THE BONAFIDE POSSESSION OF DEALER.
RULE -41 PURPOSES FOR WHICH
TRADE CERTIFICATE CAN BE USED.
• FOR TEST-DURING OR AFTER REPAIR
• PROCEEDING TO & FROM ANY PLACE FOR REGISTRATION
• TRIAL/DEMONSTRATION
• FOR DELIVERY TO CUSTOMER
• PROCEEDING TO OR RETURNING FROM
AIRPORT/RLY.STN/WHARF FOR OR AFTER BEING TRANSPORTED
• PROCEEDING TO/ RETURNING FROM VEHICLE EXHIBITION
• REGISTER AS PER
FORM -19 TO BE MAINTAINED
IN DUPLICATE
RULE-43REGISTER
OF
TC’S
AND DUPLICATE COPY TO BE CARRIED DURING THE TRIP
• DETAILS REQUIRED IN FORM 19
Date
T.C.NO/R
EGN.NO
IF REGD
DESC. OF
MOTOR
VEHICLE
PURPOSE
FOR
SENT/BR
OUGHT
DRIVER’S
NAME,D/
L no. &
Address
Hours of
leaving
the
premises
Hours of
Return
Mileage
covered
Signature
of
authorise
d person
MOTOR TRADE- ROAD RISKS
• All Trade certificates in the possession of Dealer to be declared for
Insurance• Not more than one policy for T.C’s
and one policy for named driver
basis shall be issued in respect of each town
• Policy form- Motor Trade Package Policy.
• Rating- As percentage of IDV
• For losses > Rs25,000 for Vehicles other than 2 wheelers & Rs 7,500/
for Two Wheelers to be covered at extra premium
Special Features.
• Covers loss or damage to
the Vehicle in PUBLIC PLACE or
temporarily garaged during the course of journey elsewhere than in
any premises owned or occupied by the insured.
• Perils- As per Std. Motor Package Policy
• Depreciation- As applicable in Std Motor Package Policy.
• Total Loss & IDV- As per Std. Motor Package Policy.
• Geographical Area of operation- With in 80/120 K.M radius from the
insured’s address.
Special Features contd….
• Excess- Applicable as per GR40
• Additional rate for deletion of 50% limitation clause in respect of
damage to tyres.
• Extension for demonstration purpose. Insured or employee of the
insured to accompany when being driven
• Extension for Pvt. Use.(by Member, Director or Employee of the
Insured)
MOTOR TRADE INTERNAL RISK
PACKAGE POLICY
COVERAGESec-1
Damage to own Vehicles- Rs 50,000/ AOA
Sec-II
Bodily Injury- Unlimited
Property Damage excluding damage to Vehicles1.5 lac AOA
Rs
Damage to Vehicles(T.P) Rs 1.5 lacs AOA
Rating- Based on superficial Area occupied & Annual
wages
Section-I
• Loss or Damage to any vehicle owned by the insured or his family
members caused by accidental external &visible means and
occurring in or on the premises.
• Exclusion-1- Loss of use, Depreciation, Wear & Tear,
Ele. & Mech. Breakdown, failures or
breakages
2. Damage to Tyres by application of Brakes
or by punctures, cuts or bursts
Section II• Loss or Damage
occurring in or about the premises through
negligence of insured or any person acting on his behalf
• Accidental death or injury to any person other than employees or
member of the insured’s family or household- Unlimited
• Accidental damage to any vehicle held in trust or in the custody or
control of the insured.
• Other third party property damage
General Exclusions
• Internal Risks Policies are subject to excess as per G R 40
i.e Rs 50/ for Two Wheeler & Rs 500/ for Other Vehicles.
E.Q & STFI , Riot , Strike perils
Fire or Explosion
Any consequence of Burglary, Housebreaking or theft
Damage to property while being worked upon and directly
resulting from such work
General exclusions contd…
• Defective Workmanship
• Death, Injury or Damage caused by demolition/structural alteration
or addition to premises
• Loss or damage in connection with the use ofpower driven cranes,
elevators, lifts or hoists other than car hoist having lift less than 6
feet or equivalent.
COMPARISION OF MOTOR TRADE
POLICIES
Road Transit-E
Road Risk-F
Policy Form
Commercial Vehicle/
Liability Only Policy
Motor Trade Package
Policy
Motor Trade Internal Risks
Policy
Perils
10 Perils
10 Perils
01 Peril
Exclusions ( Section-I)
As per Standard Commercial
Vehicles Policy
Same
Limited( 02 sets)
Depreciation on Parts
Yes
Yes
No
Risks covered
Transit Risks
Public Place+
Temporarily Garaged
only
IN/ON Insured premises only
CPA
No
No
No
NCB
No
No
No
Policy Excess
Rs. 50/-( 2 Wheeler)
Rs. 500/-(others)
Same
Same
Rs. 150/-
NIL
Towing Charges
As per Standard Commercial
Vehicles Policy
Internal Risks-G
COVER
Road
Road Risk-F
Internal Risks-G
COMPARISION
OF
MOTOR
TRADE
Transit-E
POLICIES
SECTION I:
LOSS OF OR
DAMAGE TO
THE VEHICLE
INSURED
(COVER)
Fire, explosion, self ignition or lightning


Burglary, housebreaking or theft


Riot and strike


Earthquake (fire and shock damage)


Flood, typhoon, hurricane, storm, tempest, inundation,
cyclone, hailstorm, frost


Accidental external means


Malicious act


Terrorist activity


Whilst in transit by road rail inland-waterway lift
elevator or air


(E)
(E)
(E)
(E)
(E)
( visible)



COMPARISION OF MOTOR TRADE
POLICIES
EXCLUSIONS
Consequential loss, depreciation, wear and tear,
mechanical or electrical breakdown, failures or
breakages
Road
TransitCommerci
al Policy
Road RiskTrade
Policy
Internal
RisksInternal
Risks Policy



(brakes,p
uncture,
cut, burst)
Tyres and tubes unless the vehicle is damaged at
the same time
(50% of the cost of replacement)*


Driver under influence of intoxicating liquor or
drugs


Loss of or damage to accessories by burglary,
(EXCLUSIONS housebreaking or theft unless the vehicle is stolen
)
at the same time

SECTION I:
LOSS OF OR
DAMAGE TO
THE VEHICLE
INSURED
Overloading or straining
*Note: Can be covered as per Endorsement 62 on
payment of extra premium









CASE STUDY
• MOTOR CAR MOVING UNDER TRADE CERTIFICATE MEETS WITH
ACCIDENT. CLAIM FORM REVEALS THE FOLLOWING.
• Use- Private
• Occupants- NIL
• Driver- Relative of the employee.
• D/L- Valid-But no badge.
Discuss all aspects of liability.
Case Study-Motor Trade Internal
Risks
1.
• When
being repaired, the vehicle caught fire resulting in total loss.
• Discuss liability.
2. The hydraulic hoist failed while the vehicle was undergoing repairs
resulting in damages.
Discuss Liability.
THANK YOU
P.Jayachandran
Senior Divisional Manager
National Insurance Co. Ltd
Kochi D.O
Email: p.jayachandran@nic.co.in