Ans. Following are the conditions under Private Car Policy B:
(1) Notice of loss:
- Notice should be given immediately to the insurer upon the occurrence of any accident, loss or damage and, in the event of any claim the insured should give all information and assistance as the insurer may require.
- Every letter, claim. writ, summons, etc. should be forwarded to the insurer immediately on the receipt of insured.
-In the event of any impending prosecution, inquest or fatal inquiry, the insured should immediately inform the insurer in writing.
- In case of theft or other criminal act which may be the subject of a claim, the insured should give immediate notice to the Police and cooperate with the insurer in securing the conviction of the offender.
(2) No, admission, offer, promise or payment:
- The insured should not settle or make any payment in respect of any claim, or admit liability or make any other admission with respect to the accident or any claim arising there from without the written consent of the insurer.
- The insurer shall be entitled, if he so desires, to take over and conduct in the name of the insured , the defence or settlement of any claim or to prosecute in the name of the insured any claim for indemnity. The insured should give any information or assistance which the insurer may require for the purpose of resisting or settling any claim.
(3) Indemnity:
- The insurer has the option to repair, reinstate or replace the motor car or part thereof and / or its accessories or may pay in cash the amount of the loss or damage.
- In any event, the liability of the insurer shall not exceed the value of parts damaged or lost less depreciation plus reasonable cost of fitting. In no case shall the liability of the insurer exceed the insured's estimate of value of the motor car (including accessories thereon) at the time of the loss or damage, whichever is less.
(4) Safeguarding the vehicle from loss or damage:
- The insured is expected to take all reasonable steps to safeguard the motor car from loss or damage.
-He is also obliged to maintain it in an efficient condition.
-In the event of any accident or breakdown the motor car should not be left unattended without proper precaution being taken to prevent further damage or loss.
-If the motor car is driven before necessary repairs are effected, any extension of the damage or any further damage shall be entirely at insured's own risk.
(5) Cancellation:
- The insurer may cancel the policy by sending seven days notice by registered letter to the insured, and in such event he will return to the insured the premium paid less the prorata portion thereon for the period the policy has been in force.
- The policy may be cancelled by the insured on seven days notice and provided no claim has arisen during the currency of the policy, the insured shall be entitled to a return of premium, less premium at the insurance company's Short Period Rates for the period the policy has been in force.
- However where the ownership of the vehicle is transferred, the policy cannot be cancelled, unless evidence that the vehicle is insured elsewhere is produced.
(6) Contribution :
If at the time any claim arises, there is any other existing insurance covering the same loss, damage or liability, then the insurer shall not be liable to pay or contribute more than its rateable proportion of such loss, damage, compensation, costs or expenses.
(36) (7) Arbitration:
-This condition provides for settlement of disputes under the policy through arbitration which is a less expensive and faster method of settlement than litigation. Only disputes regarding the amount or quantum of the claim can be referred to arbitration. If the insurer has disputed or denied liability under the policy, then the insured will have to take recourse to a court of law.
-The arbitrator has to be appointed in writing by the parties in difference.
- If the parties cannot agree upon a single arbitrator, then two disinterested persons are to be appointed as arbitrators, of whom one shall be appointed in writing by each of the parties.
-If either party shall refuse or fail to appoint an arbitrator within two calendar months after receipts of notice in writing by the other party in accordance with the provisions of the Arbitration Act, 1940 then the other party shall be at liberty to appoint a sole arbitrator.
In case of disagreement between the arbitrators, the difference will have to be referred to the decision of an Umpire, who has to be appointed by the arbitrators in writing before entering on the reference. The Umpire has to sit with the arbitrators and preside at the meetings.
It shall be a condition precedent to any right of action or suit upon the policy that award by such arbitrators or Umpire of the amount of the loss or damage shall be first obtained.
A claim will be deemed to be abandoned or time-barred if a suit is not filed in a court of law within 12 calendar months from the date the insurer declines liability for the claim,. Thus this condition stipulates a time limit for filing suit.
(8) Observance of conditions as precedent to liability:
Due observance and fulfillment of the terms, conditions and endorsement of the policy and the truth of the statements and answers in the proposal form shall be the conditions precedent to any liability of the insurer under the policy.