PRIVATE VEHICLE COMPREHENSIVE POLICY
SECTION-1 : OWN DAMAGE
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 activities; |
| d) | by Earthquake (Fire and Shock damage); |
| e) | by Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone, Hailstorm, Forst; |
| f) | by accidental external means; |
| g) | whilst in transit by road, rail, inland waterway, lift, elevator or air; |
| h) | act liability. |
Subject to a deduction for depreciation at the scale mentioned below in respect of parts replaced;
| 1. | For all rubber, nylon, plastic parts, tyre and battery | 50% |
| 2. | For all parts made of glass | Nill |
| 3. | All other parts |
| AGE OF CAR | % OF DEPRECIATION |
| Up to 1 year | Nil |
| Between 1 year and 2 year | 10% |
| Between 2 year and 3 year | 15% |
| Between 3 year and 4 year | 20% |
| Between 4 year and 5 year | 25% |
| Between 5 year and 6 year | 30% |
| Between 6 year and 7 year | 40% |
| Over 7 Years | 50% |
The insurer shall not be liable to make any payment in respect of ;
| a) | Consequential loss, depreciation, wear and tear, mechanical and electrical breakdowns failures or breakages and |
| b) | damage to Tyres unless the Motor Vehicle is damaged at the same time when the liability of the insurer is limited to 50% of cost of replacement. |
| c) | 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 anyone accident.
The insured may authorise 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.5000/- (Five thousand) |
| b) | the insurer, be 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. |
COMPULSORY EXCESS (APPLICABLE TO SECTION – Ι)
| a) | The insurer shall not be liable for the first amount indicated below or any less expenditure which may be incurred being the first part of any expenditure for which provision as made under Section-1 of this Policy in respect of each and every event occurring whilst the Motor Vehicle is being driven or is for the purpose of being driven by him in the charge of any person who;
is under 25 years of age Tk. 1000/- |
| b) | is over 25 years of age and |
| I. | has held a valid driving license other than learner’s driving license for a period more than 2 years but less than 3 years |
Tk. 500/- |
| II. | has held a valid driving license other than learner’s license
for a period more than 1 years but less than 2 years |
Tk. 700/- |
| III. | has held a valid driving license other than learner’s driving license
for a period less than 1 year |
Tk. 800/- |
If the expenditure incurred by the insurer shall include the amount for which insured is responsible hereby such amount shall be repaid by the insured forthwith.
| I. | For the purposes of this Clause the expression “event” shall mean an event or series of events arising out of one cause in connection with the Motor Vehicle. |
| II. | This Clause shall not apply to loss or damage caused by fire, self ignition, lightning or explosion. |
SECTION – II LIABILITY TO THIRD PARTIES
| 1. | 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 Vehicle Act, 1991 the Insurer shall not be liable where such death or injury arises out of and in 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 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 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. | |
| 4. | In the event of the death of any person entitled to indemnity under this policy the insurer will in respect of the liability incurred by such person Indemnity 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 of 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 indemnity under this section. | |
AVOIDANCE OF CERTAIN TERMS AND RIGHT OF RECOVERY
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.
GENERAL EXCEPTIONS
(Applicable to all section of the Policy)
The insurer shall not be liable under this policy in respect of:
- any accident, loss, damage and/or liability caused sustained or incurred outside the Geographical Area.
- any claim arising out of any contractual liability.
- 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
- a) any accident loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss.
- b) any liability of whatsoever nature.
directly or indirectly caused by or contributed to by or arising from ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purposes of this exception combustion shall include any self sustaining process or nuclear fission.
- any accident loss, damage or liability directly or indirectly and caused by or contributed to by or arising from nuclear weapons material.
- any accident loss, damage and/or liability directly or indirectly or proximately or remotely occasioned by contributed 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 or any consequences there of and in default of such proof the insurer shall not be liable to make any payment in respect of such a claim.
CONDITIONS
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.
- Notice shall be given in writing to the insurer immediately upon the occurrence of any accident or loss or damage and in the event of any claim and thereafter the insured shall give all such information and assistance as the insurer shall require. Every letter claim writ summons and/or process or a copy thereof shall be forwarded to the insurer immediately on receipt of the insured. Notice shall also be given in writing to the insurer immediately the insured shall have knowledge of any impencing Prosecution. Inqeust or Fatal Inquiry in respect of any occurrence which may give rise to a claim under this policy. In case of theft, or criminal act which may be the subject of a claim under this policy the insured shall give immediate notice to the police and co-operate with the insurer in securing the conviction of the offender.
- 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 which shall be entitled if it so desires to take over and conduct in the name of the insured the defense or settlement of any claim or to prosecute in the name of the Insured for its own benefit any claim for indemnity or otherwise and shall have full discretion in the conduct of any proceeding or in the settlement of any claim and the insured shall give all such information and assistance as the insure may require.
- The insurer may at its own option repair reinstate or replace the Motor Vehicle or part there of 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 lost less depreciation plus the reasonable cost of fitting and shall in no case exceeds the insured’s estimate of the value of the Motor Vehicle (including accessories thereon) as specified in the schedule or the Value of the Motor Vehicle (including accessories thereon) at the time of the loss or damage whichever is the less.
- The Insured shall take all reasonable steps to safeguard the Motor Vehicle from loss, damage and to maintain it in efficient condition and the insurer shall have at all times free and full access to examine the Motor Vehicle or any part thereof or any driver or employee of the insured. In the event of any accident or breakdown, the Motor Vehicle shall not be left unattended without proper precautions being taken to prevent further damage or loss and it the Motor Vehicle be driven before the necessary repairs are effected any extension of the damage or any further damage to the Motor Vehicle shall be entirely at the insured’s own risk.
- The insurer may cancel the policy by sending seven days notice by registered letter to the insured at his last known address and in such event will return to the insured the premium paid less the pro-rata portion thereon for the period the policy has been in force or the policy may be cancelled at any time by the insured on seven day’s 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 insurer 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 in produced.
- If at any 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 rate able proportion of the loss, damage compensation, costs or expenses.
- If any difference shall arise as to the quantum to be paid under this policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of an arbitrator to be appointed in writing by the parties in difference or of if they cannot agree upon a single arbitrator to the decision of two disinterested persons as arbitrators of whom one shall be appointed in writing by each of the parties within two calendar months after having been required to do so in writing by the other party in time and for the time being in force. In case either party shall refuse or fail to appoint arbitrator within two calender months after receipt of notice in writing requiring an appointment the other party shall be at liberty to appoint sole arbitrator and in case of disagreement between the arbitrators the difference shall be referred to the decision of an Umpire who shall have been appointed by them in writing before entering on the reference and who shall sit with the arbitrators and preside at the meeting.
It is clearly agreed and understood that no difference or dispute shall be referred to arbitration as herein before provide if the insurer has disputed or not accepted liability under or in respect of this policy.
It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this policy that award by such arbitrators or umpire of the amount of the loss or damage shall be first obtained.
If is also hereby further expressly agreed and declared that if the insurer shall disclaim liability to the insured for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been made the subject matter of a suit in a Court of Law then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.
- The due observance and fulfillment of the terms, conditions and endorsement 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.
NO CLAIM BONUS
A rebate in accordance with the following scale may be allowed by way of deduction from the premium required for the next renewal of the insurance on each vehicle in connection with which No Claim has been made or is pending in respect of the under noted 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 of Insurance .………………….. …………………………………..40%
No claim made or pending during the preceding 3 consecutive years of Insurance ….…………………………………………………….50%
LOSS OF NO CLAIM BONUS
The No Claim Bonus should not be totally withdrawn in the event of claim but should be reduced by two steps for each claim untill the insured has reached the basic premium. The period of qualification for bonus then commence de novo as from the next renewal date.
SCHEDULE OF LOADING
If the insured is not entitled to any No Claim Bonus and made any Claim or Claims during the preceding period of Insurance the basic premium at next renewal shall be loaded in accordance with the following scale.
One claim in preceding period of Insurance 30% of Basic Premium
Two claims in preceding period of Insurance 40% of Basic Premium
Three claims in preceding period of Insurance 50% of Basic Premium
| IMPORTANT NOTICE
1. Intimation of accident and intimation of claim under the policy must ordinarily be given within 24 hours but not later than 48 hours of the accident under any circumstances. 2. The affected vehicle must not be removed from the place of accident before inspection of the same by the Surveyor and / or representative of the company. 3. The affected vehicle must not be placed to any workshop without writer consent of the Company. 4. The affected vehicle must be kept at the place of accident duly guarded and cared till inspection of the same is complete. 5. Photocopies of Blue Book, Tax Token, Fitness Certificate, Route Permit and Driver’s Licence should always be available with the insured so that the same may be presented to the Surveyor/Company’s representative immediately on demand. Originals should also be submitted for verification as and when asked for. |