View with images and charts Automobile Insurance and Its Operation
PRISTINE VIEW OF AUTO
INSURANCE
1.1 What is Automobile Insurance? Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage: Property coverage pays for damage to or theft of your car. Liability coverage pays for your legal responsibility to others for bodily injury or property damage. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these overages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium. 2.1 Auto Insurance Rights Rights You have the right... • To receive a copy of your policy • To receive all copies of forms and applications you or the agent sign
• Not to be discriminated against because of your race, national origin, beliefs, a physical handicap that does not impair nyour driving ability Premium rights You have the right... • To a fair estimate (quotation) of premium,even though the actual premium may be more or less than the quoted estimate Claims rights You have the right... • To choose which shop will repair your car,unless this right is limited by your policy • To a prompt and good-faith settlement offer, based on the terms of your policy • To negotiate with the insurance company’s adjuster • To use any arbitration procedures provided in your policy. Renewal and cancellation rights You have the right... • To receive prior written notice if the insurance company decides to cancel or not renew your policy • To a statement of the reasons for the cancellation or non-renewal • To cancel your policy at any time —however, you may be subject to a fee or penalty if you cancel your policy mid-term 2.2 Auto insurance responsibilities You have a responsibility... • To fill out the insurance application with complete and accurate information • To get a binder after you have signed the application and use this as proof of coverage until you receive your policy and insurance identification (I.D.) card • To report any changes that affect your policy, including changes in names, addresses, drivers or vehicles Premium responsibility You have a responsibility... • To keep track of your policy renewal date or premium payment due date; most acompanies will send you a bill at least 30days before the renewal date • To pay premiums by the due date, even if you are in a dispute with the insurance ompany... if you do not pay, the company has the right to cancel your policy. Claims responsibility You have a responsibility... • To not file phony, padded, or fraudulent claims which ask the company to pay for losses that did not actually occur; filing fraudulent claims is a crime and you could land in jail • To report promptly any accidents or other losses to the agent or company, following the procedures in your policy
• To cooperate in the claims invest process by providing information requested by the company, agent, or adjuster • To pay for any losses that exceeds the limits of your policy • To immediately inform the company of any claims or lawsuits that could require payment by your company. 2.3 Things to remember You must give your insurer or the person who sells you the insurance as much information as you can about yourself and your vehicle. You must, for example, tell your insurer or the person who sells you the insurance about any driving convictions, any medical condition which could affect your driving ability, or any motoring accidents, even if you have not claimed on your insurance as a result. The information you give will affect the level of your premium, and whether your insurer will pay out on any claim If you want to include anyone else on your insurance, you must give details about them to your insurer, or the person who sells you the insurance You must tell your insurer, in writing, about any change in your circumstances, for example a change of occupation. You should tell them as soon as the change occurs, and not wait until it's time to renew your policy If you take out an insurance policy in your name, you should be the person who drives the vehicle most. If you take out motor insurance in someone else's name because it's cheaper, and they are not the main driver, the insurer can refuse to pay out on a claim 1 If the vehicle has been bought on credit, the finance company will usually insist that it is insured in the name of the person who has taken out the credit agreement. 1 Motor insurance policies normally run for a year. Your insurer does not have to send you a notice reminding you to renew, but most insurers do send out reminders When you take out or renew motor insurance, you will get a cover note at first. This will be valid for 30 days or until you get a copy of the full insurance certificate. It is a criminal offence to drive without a cover note or full insurance certificate, so do not rely only on a telephone conversation where someone has told you that you are covered You can cancel an insurance policy if you sell your vehicle, if it is stolen, or if it is written off. You should check your policy to see if you have a right to a refund of your premium 2.4 What is covered by a basic auto policy? Your auto policy may include six coverages. Each coverage is priced separately.
1. Bodily Injury Liability This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. consider buying more than the state-required minimum to protect assets such as your home and savings. 2. Medical Payments or Personal Injury Protection (PIP) This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accid It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely ent. It may also cover funeral costs. 3. Property Damage Liability This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.
. 4. Collision This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible , the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible. 5. Comprehensive
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible. 6. Uninsured and Underinsured Motorist Coverage This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian 2.5 Can I drive legally without insurance? NO! Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don’t have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous. If you've financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement. 2.6 What if I lease a car? If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage. You'll need to buy these coverages in addition to the others that may be mandatory in your state, such as auto liability insurance. 2.7 How do I choose an insurance company? There are many insurance companies, so choosing between them can be a challenge. Here are the main points to keep in mind when selecting an insurance company: Licensing Not every company is licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there’s a problem. Price Many companies sell insurance policies and prices vary greatly from one to another, so it really pays to shop around. Get at least three price quotes from companies, agents and from the Internet.
Financial Solidity You buy insurance to protect you financially and provide peace of mind. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies. Service Your insurance company must have the ability to handle your claims fairly, efficiently and quickly. You may check a national claims database to see what complaint information it has on a company. Comfort You should feel comfortable with your insurance purchase, whether you buy it from a local agent, directly from the company over the phone, or over the Internet. Make sure that the agent or company will be easy to reach if you have a question or need to file a claim.
2.8 How much coverage do I need? Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. You may also consider purchasing an umbrella or excess liability policy. These policies pay when your underlying coverages are exhausted. In addition to liability coverage, consider buying collision and comprehensive coverage. You don't decide how much to buy. Your coverage reflects the market value of your car and the cost of repairing it. 2.9 What determines the price of one’s policy? There are many factors that influence the price you pay for auto insurance.Your premium may be higher or lower, depending on: 2.10Driving record: .The better your record, the lower your premium. If you've had accidents or serious traffic violations, you will pay more and vice versa.
The number of miles you drive each year : The more miles you drive, the more chance for accidents. If you drive a lower than average number of miles per year, less than 10,000, you will pay less. Where do you live? : Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair. Your age. : In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. The car you drive. : Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car. The amount of coverage : Of course, like anything else, the more coverage you have, the more you pay. However, you may qualify for discou
THE UNDERWRITNG POLICY 3.1 How do companies establish the price of auto insurance? The overall cost of auto insurance is affected by the costs of things the insurance pays for: • Medical care for persons injured in accidents • Auto repair • Theft & fraud • Defending lawsuits against insureds • Administrative expenses The company has the right to charge enough to recover the costs of the expenses shown above and make a reasonable profit.
3.2 How does the insurance company decide what rates to charge? Each company has many variables. They are based on the company’s prediction of how much you and other drivers “like” you will cost the company by filing claims. Statistics & rates Insurance companies base their rates on statistics. • The companies have analyzed statistical information about millions of drivers and they have identified characteristics of drivers who are more likely to have losses which the company would have to pay • For rating purposes the company will group you together with other people whose age, sex, residence and driving experience are similar to yours. High risk = High price 3.3 What is a “high risk” driver? A “high risk” driver is one that the insurance companies believe has a high likelihood of having accidents. You could be classified as a high risk for these reasons: • Poor driving record (accidents, tickets) • Uninsured for more than 30 days 3.4 What else could make it harder to find Insurance? • Poor credit information • Inexperienced driver • Occupation (example: pizza delivery)
3.5 Who insures high risk drivers? Many insurance companies have a program or try to accommodate high-risk drivers. High-risk drivers will pay more than drivers that are not classified as high risk. There are also numerous companies that specialize in selling insurance to people that other companies will not. 3.6 STANDARD FORM FOR PRIVATE VEHICLES POLICY SCHEDUE Policy no: The Insurer: The Insured:
Name… Address… Business or Profession: Period of insurance (a) from……..O’clock on … ……….to midnight on…… Any subsequent period for which the insured shall pay and the insurer shall agree to accept a renewal premium.
Geographical area: Bangladesh The motor vehicle : Any of the following Chassis no………………….. Engine no…………………………………….. REG. Mark & no
Make Type Of body
Cubic capacity
Segregation of the estimated value:
Year of manufacture
Carrying capacity Seating capacity Including driver
Goods
1. Vehicle (Excluding glass item) TK 2. Glass item TK 3. Electrical appliance TK 4. Accessories TK
Limitation as to use (a) Use solely social, domestic and pleasure purposes and foe the insured’s business. (b) Use only for carrying own goods. The policy does not cover use for hire or reward or for organized racing, pace making reliability trial or speed testing, carriage of goods (other than for samples)in connection With any trade or business or use of any purpose in connection with the motor trade. Delete the words” carriage of goods (other than sample)”including wording under (a) above when policy will be issued to cover own goods . Driver’s clause: Driver: Any of following (a)The insured (b)Any other person who is driving on the insured’s order or with his permission. Provided that the person driving holds or had held and has not been disqualified from holding An effective driving license with all the required endorsement thereon as per motor vehicles act and the rules made there under for the time being in force to driver the category of vehicle insured hereunder. Limits of liability: Under section-II-I(a) such amount as is necessary to meet the requirements of motor vehicle act 1991 effective from 3rd December 1991. Under section-II-I(b) TK50000 in respect of one claim or series of claims arising out of one accident. Date of signature of proposal premium tk And declaration Signed at on the day of 199 insurer
No claim bonus In the event of no claim being made or arising under this policy during a period of insurance specified below immediately preceding the renewal of the policy the renewal premium for such part of the insurance is renewed shall be reduced as flows. Reductions on own damage premium only Period of insurance No claim made or pending during the preceding year of insurance No claim made or pending during the preceding 2 consecutive years No claim made or pending during the preceding 2 consecutive years
30% 40% 50%
If the insurer shall consent to transfer of interest in this policy the period during which the interest was in the transferor shall not accrue to the benefit of the transferee. If more than one motor vehicle is described in the schedule the no claim bonus shall be applied as if a separate policy had been issued in respect of each motor vehicle. No claim discount will only be allowed when the insurance is continuous. If the policy lapses due to non payment of renewal premium on or before this renewal date and a fresh policy is obtained within 30 days of the expiry of the previous policy. Then the no claim bonus earned in the previous policy shall be allowed. LOSS OF NO CLAIM BONUS Where an insured at the commencement of the current period of insurance was entitled to no claim bonus in the event of claims occurring thereafter in that period of insurance the no claim bonus at next renewal will be reduced by two steps for each claim until the basic premium is reached, which would then be the premium payable at renewal. SCHEDULE OF LOADING If the insured is not entitled to no claim bonus at the commencement of the current period of insurance and makes claims during that period of insurance the basic premium at next renewal shall be loaded in accordance with the under noted scale. After imposition of htr loading if an insured does not any claim during that policy year the basic premium only at next renewal will apply. Period of insurance One claim in preceding period of insurance two claim in preceding period of insurance three claim in preceding period of insurance
loading 30% of basic premium 40% of basic premium 50% of basic premium
PRIVATE VEHICLE COMPREHENSIVE POLICY FORM Whereas the Insured by a proposal and declaration dated as stated in the schedule which shall be the basis of this contract and is deemed to be incorporated herein has applied to the Insurer for the Insurance hereinafter contained and has paid or agreed to pay the
premium as consideration for such insurance in’ respect of accident loss or damage occurring during the period of Insurance. SECTION I 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 and terrorism activities
d)
by Earthquake (Fire and Shock Damage) ;
e)
by Flood, Typhoon, Hurricane storm, tempest, Inundation, Cyclone, Hailstorm; Frost
f)
by accidental external means
g)
Whilst in transit by road, rail, inland waterway, lift, elevator or air;
Subject to a deduction for depreciation at the scale mentioned below in respect of parts replaced? 1.
For all rubber, nylon, plastic parts type and Battery
50%
2.
For all parts made of Glass
Nil
3.
All other parts. AGE OF CAR
% of Depreciation
Up to 6 month
Nil
Between 6 months and 1 year
5%
Between 1 year and 2 years
10%
Between 2 year and 3 years
15%
Between 3 year and 4 years
25%
Between 4 year and 5 years
35%
Between 5 year and 6 years
40%
over 7 years
50%
No under Insurance shall be applied at the time of loss The Insurer shall not be liable to make any payment in respect of :-
(a) Consequential loss, depreciation, wear and tear, mechanical or electrical breakdowns failures 01 breakages and (b)
Damage to Tiers and Glass items unless the Motor Vehicle is damaged at the same time when the liability of the insurer is limited to 50% of cost of replacement.
I
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 any one accident. The Insured may authorize 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. 500.07- (Five thousand)
b)
The insurer is 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. SECTION II
LIABILITY TO THIRD PARTIES
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 vehicles Act 1991 the Insurer shall not be liable where such death or injury arises out of and in the 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 I 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 he 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 even of the death of any person entitled to indemnity under this policy the. Insurer will in respect of the liability incurred by such person indemnify 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 or
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 the 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. 3.7GENERAL EXCEPTIONS (Applicable to all Section of the policy ) The insurer shall not be liable under this policy in respect of •.-
1. 2. 3.
4.
5. 6.
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 clause. a) any accident loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising there from or any consequential loss. b) Any liability of whatsoever nature. Directly or indirectly caused by or contributed to by or arising from ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. Any accident loss damage or liability directly or indirectly 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 to 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.
3.8 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. 1.
Notice shall be given in writing to the insurer immediately upon the occurrence of any accident or loss or damage . 2. 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. 3. The-insurer may at its own option repair reinstate or replace the Motor Vehicle or part thereof 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 loss less depreciation plus the reasonable cost of fitting. 4. The Insured shall take all reasonable steps to safeguard the Motor Vehicle from loss and to maintain it must be taken by the insured. 5.
The insurer may cancel the policy by sending seven days notice by registered letter to the insured at his last known address
6. If at the 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 rateable proportion of the loss, damage, compensation, costs or expenses. 7. If any difference shall arise as to the quantum to be paid under the policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of an arbitrator. 8. The due observance and fulfillment of the terms conditions and endorsements 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. 3.9 Calculation of premium for different types of Autos Private Car Model (Under Private Registration) Particulars
1
2
Comprehensive Risk
Act Liability Risk
Up to 1300 CC
Up To 1800 CC
Up To 3000 CC
Over 3000 CC
Endorsement no
Up to 1300 CC
Up To 1800 CC
Up To 3000 CC
Over 3000 CC
Endorsement no
3
4
5
6
7
8
9
10
11
12
250
350
Own Damage Premium 1. Premium on vehicle 2795 2873 2925 2990 2. Plus 2.65% on FIV 13250 13250 13250 13250 (TK500000) 3. Total own damage 16045 16123 16175 16240 4. Plus 25% on own Damage premium 4011 4031 4044 4060 -----------------------------------------------5.Basic(for own damage)20056 20154 20219 20300 6. Less.no claim bonus ---------------------------------------------7.Net premium for own 20056 20154 20219 20300 damage ACT LIABILITY PREMIUM 8.Basic 150 250 350 450 9.passengers (45/-per seat) 10.Driver 30 30 30 30 ----------------------------------------------11.Gross total premium 20236 20434 20549 20780
150
180
450
30 30 30 30 --------------------------------280 380 480
EXCLUSIVEOFSPECIAL PERILS 12.Less.Roit&strike(0.50% on F.I.V) 13.Less.Earthquake (0.25% on F.I.V) 14.Less.Flood&cyclone(0.25% on F.I.V) 15.Total net premium 20236 20434 20549 20780 16.Add.15%vat 3035 3065 3082 3117 17.Total premium 23271 23499 23631 23897
180 27 207
280 42 322
380 50 430
480 72 552
COMMERCIAL VEHICLE ( Micro- Bus/ Mini Bus/Bus) Particulars
1 2
Comprehensive Risk
Act Liability Risk
Not Excced Ing 18 seats
Not Excced Ing 19 To 24 seats
Not Excced Ing 25 To 30 seats
Not Excced Ing 31 To 36 seats
Over 36 seats
Not Excced Ing 18 seats
Not Excced Ing 19 To 24 seats
Not Excced Ing 25 To 30 seats
Not Excced Ing 31 To 36 seats
Over 36 seats
3
4
5
6
7
8
9
10
11
12
Own Damage Premium 1. Premium on vehicle 2814 3072 3621 4124 4410 2. Plus 2% on FIV 20000 20000 20000 20000 20000 (TK1000000) -----------------------------------------------------------3. Basic 22814 23072 23621 24124 24410 5. Less.no claim bonus ------------------------------------------------------------6.Net premium for own 22814 23072 23621 24124 24410 damage ACT LIABILITY PREMIUM 7.ACT LIABILITY 500 525 550 600 650 500 525 550 600 650 8.Passngers (per passengerTk 45/) 9.Driver 90 90 90 90 90 90 90 90 90 90 -------------------------------------------------------------------------------------------------10.Gross total premium 23404 23687 24261 24814 25150 590 615 640 690 740 EXCLUSIVEOFSPECIAL PERILS 11.Less. Roit&strike(0.50% on F.I.V) 12.Less.Earthquake (0.25% on F.I.V) 13.Less.Flood&cyclone(0.25% on F.I.V) 14.Total net premium 23404 23687 24261 24814 25150 590 615 640 690 740 15.Add.15%vat 3511 3553 3639 3722 3773 89 92 96 104 111 --------------------------------------------------------------------------------------------------------
16.Total premium
50319
50927
52161
53350
54073
1269
1322
1376
1480
CARRYING VEHICLE (TRUCK) Particulars
Comprehensive Risk
Act Liability Risk
Sl. No 3 Tons 1
2 Own Damage Premium 1.Premium on vehicles 2. Add. 20% of the basic for each additional Ton after 3 tons
3 3078
4 Tons 4 3078
5 Tons 5
Edit No 6
3 4 Tons Tons 7 8
5 Tons 9
3078
616 1232 ---------------------------------3078 3694 4310 3.Plus: 1.65 on F.I.V(500000/) 8250 8250 8250 -----------------------------------4.Basic Premium for own damage 11328 11944 12560 5. Less.no claim bonus ------------------------------------6.Net premium for own 11328 11944 12560 damage ACT LIABILITY PREMIUM 7.Basic 1250 1250 1250 8. Add. 20% of the basic for each additional Ton after 3 tons 250 500 9.Lum Sum 270 270 270 11 Paid Driver/Helper/Conductor (Tk.30/ for each) 90 90 90 --------------------------------------12 Gross Net Premium 12938 13804 14670 EXCLUSIVEOFSPECIAL PERILS 13.Less.Roit&strike(0.50% on F.I.V) 14.Less.Earthquake (0.25% on F.I.V) 15.Less.Flood&cyclone (0.25% on F.I.V) 16.Total net premium 12938 13804 14670 17.Add.15%vat 1941 2071 2201 -------------------------------------------18.Total premium 14879 15875 16871
1250
1250
1250
270
250 270
500 270
90 90 90 -----------------------------1610 1860 2110
1610 1860 2110 242 279 317 ---------------------------------1852 2139 2427
Edit No 10
1591
Motorsed( Rickshaw/ Tempoo/Mushuk) Particulars
1
2
Comprehensive Risk
Act Liability Risk
Up to 350 CC
Up To 500 CC
Up To 750 CC
Over 750 CC
Endorsement no
Up to 350 CC
Up To 500 CC
Up To 750 CC
Over 750 CC
Endorsement no
3
4
5
6
7
8
9
10
11
12
Own Damage Premium 1. Premium on vehicle 1062 1200 1332 1872 2. Plus 1.9% on FIV 3800 3800 3800 3800 (TK200000) ------------------------------------3.Own Damage Premium 4862 5000 5132 5672 4 Less.no claim bonus ---------------------------------------5.Net premium for own 4862 5000 5132 5672 damage ACT LIABILITY PREMIUM 7.basic premium 244 266 289 334 8. Passenger road user (45* No. of Seats) 315 315 315 315 9.Paid Driver/ Helper or Conductor (30* No of D/H/C) 60 60 60 60 ------------------------------------11.Gross Net Premium 5481 5641 5796 6381 EXCLUSIVEOFSPECIAL PERILS 12.Less Roit&strike(0.50% on F.I.A) 13.Less.Earthquake (0.25% on F.I.A) 14.Less.Flood&cyclone (0.25% on F.I.A) ----------------------------------------15.Total net premium 5481 5641 5796 6381 16.Add.15%vat 822 846 869 957 -------------------------------------------------------------------------------17.Total premium 6303 712 737 764 815 Motor Cycle
244
266
289
334
315
315
315
315
60 60 60 60 ---------------------------------------619 641 664 709
---------------------------------------619 641 664 709 93 96 100 106 6487
6665
7338
Particulars Sl. No
1
2
Own Damage Premium: 1. Premium on vehicle 2. Plus 2.15% on FIV (TK1000000)
Comprehensive Risk
Act Liability Risk
Up to 150 CC
Up To 250 CC
Up To 350 CC
Up to 150 Up CC To 250 CC
3
4
5
6
200 1720
275 1720
7
Up To 350 CC 8
350 1720
-------------------------------------------
3. Basic 1920 1995 2070 4. Less. no claim bonus --------------------------------------------5. Net premium for own 1920 1995 2070 damage ACT LIABILITY PREMIUM 6. Act Liability 50 80 150 50 80 150 10.Passngers (45*1) 45 45 45 45 45 45 11.Owner 50 50 50 50 50 50 ----------------------------------------------------------------------12.Gross total premium 2065 2170 2315 145 175 245 13.Add.15%vat 310 326 347 22 26 37 ------------------------------------------------------------------------14.Total premium 2375 2496 2662 167 201 282 CLAIM SETTLEMENT PROCESS 4.1 How GEICO Investigates a Claim When someone reports an accident to GEICO, a liability examiner is assigned to investigate the accident thoroughly to ensure that we handle everyone's claim properly. This process is called the liability investigation. Here are some of the steps we commonly follow to make sure we get all the facts about an accident: The liability examiner reviews the insurance policy and the coverage in effect for the loss to determine what types of damage or injuries are covered. The liability examiner attempts to contact everyone involved in the accident - drivers, passengers, witnesses, etc. - to get everyone's account of the accident.
--
When there are conflicting versions of what occurred in the accident, the liability examiner conducts an in-depth interview with each person involved. These interviews help resolve disputes over the facts of the accident. The liability examiner gathers and reviews additional relevant information, such as the police report, applicable state and local traffic laws, and photos of the scene and the vehicles involved. Then the liability examiner considers all the facts, determines the cause of the accident, and handles the claim accordingly. We are always willing to re-examine our decision if new information about an accident becomes available. 4.2 Resolving claim disputes Who decides comparative negligence? Negligence is a legal issue and there’s no magic formula for dividing the responsibility for an accident .When negligence is disputed, it takes a judge or jury to make conclusions that are legally binding. In reality, most decisions about negligence in auto accidents are made by insurance. companies and their claims adjusters. Validate Even if you accept the adjuster’s conclusion that you were partly at fault, you don’t have to accept the adjuster’s numbers. If the company says you were 30% at fault, ask how that percentage was determined. You have a right to get this information! Subrogation If you’re involved an accident with another car and you can’t settle with the other driver’s company, you can submit the claim to your own company — but only if you have collision coverage. You pay your own collision deductible. Then your company settles the full claim with you and takes over (subrogates) your claim against the other company. If your company collects from the other driver’s company, it will refund your deductible minus an amount equal to the percentage of your negligence. Who hit whom? When the only evidence is your word against the other driver’s word, there’s only one place to settle who pays... in court! Comparative negligence Sharing fault and sharing expense This law says the responsibility (fault) for an accident can be shared. It helps determine how much you can collect from the other driver or the insurance company. Negligence If a traffic accident happens because you do not use the amount of care that could
be expected of a reasonable and prudent person under the circumstances, you are considered negligent. Shared negligence “Whose fault was it?” That’s one of the first questions after an accident. • It’s clear the other driver ran into you... in fact, the other driver got a ticket • But that doesn’t automatically mean the other driver was completely at fault Under comparative negligence law, the other driver can get a ticket... but if you could have reasonably done anything to avoid the accident, you may have to share the negligence and the expense for damages. Investigating the claim When you file a claim against the other driver’s insurance, the company will want to determine whether you should share the blame. The company will ask questions such as: • Did you see the other car before its werved into your lane • If you hadn’t been tuning the radio could you have gotten out of the way • If you had been wearing a seat belt would your injuries have been as bad • Was your car illegally parked? The adjuster: • Your first stop; adjusters evaluate damage and make settlement offers The claims supervisor: • Your next stop if you believe the adjuster’s position is unreasonable or unfair Appraisal or arbitration: • Your policy provides for one or the other if the claims supervisor was unable to satisfy your concern • Written complaints are investigated to determine whether the company and agent have acted improperly • Please note: the Department cannot settle factual disputes over who was at fault or how much the damage is worth Small Claims Court • Your county small claims court can settle disputes involving $3,000 or less. In a typical case, you would sue the other driver, not his or her insurance company. Private Attorney • Consult an attorney whenever you need information about your legal rights and remedies. 4.3 How to make a claim if your car has been stolen If your car has been stolen, tell your insurer and the police immediately. Your insurer will wait a few weeks before settling your claim to allow time for the car to be found. Check your policy to see whether it covers the cost of hiring another car during this time. If you were paying your premium by instalments, you may have to carry on paying, even though you have no
vehicle to insure. If your car is found after your claim has been settled, it will belong to your insurer. If your car is not found, your insurer will offer to pay you the market value of the car, which is the amount you could have sold it for before it was stolen. This payment may bring your policy to an end, depending on the policy. You will not have the rest of your premium refunded, unless this is included in your policy. If you are not satisfied with the offer, try to get evidence that the car is worth more, by using car price guides or prices of similar vehicles in local papers. If your negotiations fail, you may wish to take further action. For information on how to take further action, see How to make a complaint in this fact sheet. 4.4 How to make a claim if your car has been in an accident If you have an accident: 1 never admit that it was your fault at the scene of the accident, as this could make your policy invalid exchange names, addresses, and insurance details with the drivers of the other vehicles involved, and get the details of any independent witnesses. If someone refuses to give you details about themselves or their insurance, your insurer may be able to trace them through the registration number of their car tell your insurer about the accident straight away, even if you do not intend to make a claim. If you do not make a claim for the accident, you will not risk losing your no claims bonus if someone has been injured you must produce your insurance certificate (or cover note) to a police officer or anyone else with reasonable grounds for wishing to see it. If you cannot do this at the scene, you must produce it at a police station within seven days. If you don't do this, the police can seize your vehicle and sell it (although you can claim back the proceeds of the sale). Third party, and third party fire and theft policies Third party and third party fire and theft policies do not cover accidental damage to your car, but they may cover damage or personal injury to the other party, depending on who is to blame for the accident. Always make a claim against the other party first, and allow the insurer to decide who is responsible for the accident. If they decide that you are responsible, you will have to pay for the repairs yourself. To make a claim from the other driver, write to them saying that you intend to make a claim from them. Say that you hold them responsible for the accident and ask them to tell their insurer. Tell your own insurer that you are claiming from the third party. The other driver must report the accident to their own insurer before the claim can be dealt with. The insurer can only act on the instructions of their own policy-holder. You can find out if there is an insurance policy covering the other driver's vehicle. Comprehensive insurance policies If you have a comprehensive insurance policy, you should claim from your own insurer. Be aware that you may lose your no claims bonus if your insurer is unable to recover the money
from the other driver's insurer. You will still need to claim from the other driver's insurer for any injuries you have suffered or any losses which are not covered by your insurance policy. To make a claim, get a claim form from your insurer, or write to the other driver or their insurer, giving full details of the accident and the driver's policy number. Tell the insurer about any independent witnesses, and send them any witness statements as soon as possible (you will need to provide estimates if you are claiming on the other driver's insurance). If you used a broker or an agent to buy your insurance policy, they may help you to prepare your claim. Be sure to keep copies of all documents, including letters, claim forms and statements. Don't arrange to have your car repaired without the insurer's permission, as you will be responsible for the cost. The insurer may ask an engineer or a motor claims assessor to inspect your car, and use an approved repair firm to carry out the work. Alternatively, you may be asked to get estimates yourself, and send them to your insurer for approval before you can go ahead with the repairs. You may have to pay part of the repair costs yourself if your vehicle ends up in a better condition after it has been repaired than it was before. Repairing your car The object of any repair is to restore your car to the same condition it was in immediately before the accident. • The company will choose the least expensive way to do this. • That may mean straightening a body part, installing a used one, or replacing it with a new part which could be original equipment parts or aftermarket parts that are approved. • The company will probably make you a settlement offer based on the estimated repair costs... if you have a lien on your car, the company will make the check out to you, the lien holder and the body shop itself. The company’s estimate The insurance adjuster will propose a settlement based on the estimated cost of repairs and give you a copy of the estimate. If you notify the company that their estimate is lower than estimates you’ve gotten yourself, the company has two choices: • Pay the difference between your estimate and the company’s estimate • OR give you the name of at least one shop that will repair your car for the amount of the company’s estimate. Choice of parts The insurance company’s repair estimate must disclose what kind of parts the estimate is based on. The estimate must tell you if: • If the parts are aftermarket, meaning they’re new but not made by the manufacturer of your car; you will likely be entitled to new parts only if your car is the current model year. • If the parts are used, of “like kind and quality” — this means they will be bought from a salvage dealer; the estimate must identify the salvage dealer. Original Equipment Manufacturer (OEM) or aftermarket parts? There has been a lot of controversy over the use of aftermarket parts. Your body shop may tell you they are inferior or don’t fit like parts sold by the “original equipment
manufacturer” (OEM). • No policy promises to use OEM parts, and some policies now make it clear that they will use aftermarket parts when possible. • You can still have OEM parts if you are willing to pay the difference in parts price. Insurance tip: If your insurance company requires you to use a specific repair shop, the company must guarantee the shop’s work and assess no extra cost to you. Typical policy language: Limit of Liability A. Our limit of liability for loss will be the lesser of the: 1. Actual cash value of the stolen or damaged property; or 2. Amount necessary to repair or replace the property. B. An adjustment for depreciation and physical condition will be made in determining actual cash value at the time of loss. 4.5 When your car is totaled The total loss Your car is considered a total loss when it appears less expensive for the insurance company to replace it than repair it. Everything is based on the car’s actual cash value (ACV). • ACV is what your car (including rust,dents and all the previous damage) was worth on the open market the moment before the accident... it is NOT how much you owe on the car • The company can choose to replace your car with one of “like kind and quality” or offer to settle with you for the car’s actual cash value Cash settlement The company will use one of three methods to determine your car’s actual cash value. • The average cost of two or more comparable cars (make, model, year and condition) available in your area within the past 90 days • OR the average of two or more quotations from local dealers if no cars were actually available • OR a pricing service that has information about auto prices in the local market Replacement If the company offers a replacement car, it must be: • Same make; same year or newer; similar options and mileage; in as good or better condition as your car before the loss • Available for inspection within a reasonable distance from your home • AND free of all taxes and transfer fees. The reality: insurance companies seldom offer replacements, even though the law allows it. Companies usually prefer to settle or cash.
If you can’t find a replacement After accepting a settlement offer, you have 35 days to find a car you can buy for the settlement amount. However, if you cannot find that car within 35 days, you may have the right to reopen negotiations. • Call the adjuster with the location and prices of cars you have found • Insist that the adjuster either meet those prices or tell you where you can find a car at the settlement price When you can’t agree: appraisal Any time you negotiate with your company(and you are simply unable to agree on a settlement) either you or the company can demand an “appraisal.” • You and the company each designate a competent appraiser • The appraisers appoint an umpire and independently evaluate your loss • The umpire resolves any differences between the two appraisers • If you and the company accept the appraisal, the results are binding LEADING AUTO INSURANCE PROVIDERS: NATIONAL & INTERNATIONAL PERSPECTIVE 5.1 Some General Insurance Companies in our Country The City General Insurance Company Ltd. (CGIC) The City General Insurance Company Ltd. (CGIC) is sponsored by few of the most eminent business personalities, industrialists and bankers of Bangladesh under the patronization and guidance of Al-Haj Anwar Hossain, Chairman of Anwar Group of Industries. Mr. Hossain is a former Member of Parliament of Bangladesh, recipient of the Best Banker award by the Government, an industrialist, social worker and above all, a philanthropist. Mr. Hossain is a man of high esteem and is well respected in the society PRODUCTS (regarding auto insurance) MOTOR VEHICLE 1. PRIVATE 2. COMMERCIAL 3. MOTOR CYCLE BUSINESS PROGRESS Business-Wise Premium Income FIRE 63,624,683.00 MARINE CARGO 98,419,563.00 MARINE HULL 4,406,168.00 MOTOR 3,847,531.00 MISCELLANEOUS 18,260,498.00 Gross Premium Income 2006 100,077,788.00 2007 113,318,260.00 2008 129,021,150.00 2009 149,144,382.00 2010 188,558,443.00 Re-Insurance Premium Ceded FIRE 30,028,270.00 MARINE CARGO 24,803,833.00 MARINE HULL 3,269,669.00 MOTOR 1,115,093.00 MISCELLANEOUS 15,851,333.00
Our Vission Is to serve our insured with utmost care and provide the best solution for their needs. We will be a company with due solemnity and corporate social responsibility to the society upheld by taking property risks. Our Mission Is to provide unequal service, protect our insured interest and contribute for economic stabilization of the country. To maintain stakeholders interest with fair and transparent operations ACTIVITIES UNDERWRITING The Company is engaged in General Insurance business, underwriting Fire, Marine Cargo, Marine Hull, Motor Vehicle, Burglary, Cash-in-Transit, Cash-in-Counter, Personal Accident, Workmen Compensation, Contractors All Risk, Machinery Break Down (MBD), Deterioration of Stock (DOS), Boiler & Pressure Vessel (BPV), Contractor’s Plant & Machinery (CPM), Electronic Equipment and etc. RE-INSURANCE Reinsurance is a method of sharing the risks by spreading the same throughout the world. The Company has well-knit automatic reinsurance arrangement, i.e. Treaty / Agreement, for all classes of insurance, and as such can transact any type of risk of any amount. CLAMIS Insurance is contract of indemnity by which “the insured is put back to the position as he was immediately before the loss”. CGIC is Committed to maintain the principle of indemnity. Besides, CGIC is committed to build customer relationship. Keeping this in view, we always go one step ahead to satisfy our valued clients. By applying our best judgment we ensure prompt settlement of all claims to the utmost satisfaction of the insuring clients in the shortest possible time. Green Delta Insurance company ltd. Green Delta Insurance Company Limited (GDIC) is one of the leading private non life insurance companies in Bangladesh. GDIC was incorporated in December 14, 1985 as public limited company under the companies’ Act. 1913. But the actual operation of the company started on 1st January 1986, with a paid up capital of BDT 30.00 million only. The shares of the company are listed with both Dhaka and Chittagong stock exchanges as a publicly quoted company. In 1997, GDIC participated in equity investment to establish Delta Brac Housing Ltd. In 2005, GDIC sponsored a joint venture consortium firm named Green Delta Aims Ltd. This year, the company also floated its very first subsidiary “Green Delta Financial Services Ltd.” – a share brokerage firm. At present the company has been operating its business through 36 branches located at different strategically important areas of Bangladesh. Stepping at it’s 25th birthday, Green Delta Insurance Company Limited has now become a big family of 20 respected board members, 11 dedicated senior management members, 600+ committed staff, numerous valued clients and thousands of esteemed shareholders with a paid up capital of BDT 408.24 million. With the charismatic leadership of Mr. Nasir A Choudhury, Green Delta Insurance Company Ltd. has been leading the wind of change in the insurance industry of the country in terms of service standard, innovative products and legislative restructuring. Agrani Insurance company Ltd.
Founded 3rd April,2000. Head Office : Saiham Sky View Tower(14th Floor),45 Bijoy Nagar., 1000. Dhaka, Location Bangladesh The busy and competitive scenario of today’s commercial world has constrained the time factor and has increased the value of crisp and up-to-the point information .Taking this factor into consideration, we they like to take the privilege to introduce agrani Insurance Company Limited, sponsored & incorporated on 14 March 2000 under the company act,1994 by a group of entrepreneurs of Bangladesh who had earlier established themselves as leading industrialist and business. magnates of the country. The Company started its business on 03 April 2000 after obtaining registration from the Department of Insurance, government of the Peoples Republic of Bangladesh. The company is enlisted with Dhaka Stock Exchange in March 2005. the company is financially sound and has been declaring dividend since 2004. The company has been assigned “A-“(pronounced as “A” minus) denotes high claim paying ability, protection factors are good and there is an exception of variability in risk over time due to economic and/ or underwriting conditions.Present Chairman is Mr. mahmudul hoque .Mr.Md. Anwar hossion. Managing director (CC) of the Company, has a long experience in Insurance Industry. Prior to holding this post he was the deputy managing Director of the Company and looking after the Company. Vision : To become a leading Insurance Service Provider to the Nation. Goal : To maintain good relation with clients and thus benefit our shareholders, employees and the communities where we do business. Strength : We are backed by the Asia's most innovative Insurance Company with their global expertness & technical support in the Insurance activities since inception. The Company underwrites risk involved in trade and properties and thus provides their security through Insurance and Re-Insurance service. The business of the company covers Fire, Marine, Motor and all kinds of Miscellaneous Insurance including Health, Personal Accident etc Some of our Products populer Insurance * Motor : Comprehensive Insurance Act Only Liability Insurance Increased Liability Insurance 5.2 SOME INTERNATIONAL AUTO INSURANSE PROVIDERS Amica Mutual Amica Mutual was rated the top auto insurance provider in the United States in 2010 for the 11th consecutive year, according to the latest customer satisfaction survey from J.D. Power.
The company scored 849 points (compared to 851 in 2009) out of a possible 1,000, and was followed closely by Erie Insurance (849), Auto-Owners Insurance (813), Shelter (807), and State Farm (795), the leading car insurer. Overall, customer satisfaction dropped year-over-year, thanks in part to an increase in the cost of auto insurance premiums. An increase in premium was reported by 22% of respondents, up from 19% in 2009, but the lack of advanced notice given to insured by their insurance companies also led to the drop in satisfaction. The study also found that 60% of policyholders weren’t given advance notice of rate increases. Don’t expect that to change anytime soon. Insurance companies would prefer that you simply continue paying your premium without even looking at the renewal bill. State Farm As its name suggests, the State Farm Mutual Insurance Co. is a mutual company owned by its policyholders, and its stock does not trade publicly. So there are no financial statements on file with the U.S. Securities and Exchange Commission. There is, however, a limited amount of financial data available for the company. The State Farm Mutual Automobile Insurance Co. reported $32.06 billion in premiums earned last year, up from $31.58 billion in 2008. After paying claims, expenses and fees, the company had an operating loss, but once its investment gains are added into the mix, it had net income of $570 million. Allstate Allstate has a small stake in the service contract industry. However, in the 2009 annual report of Allstate Corp., there is no mention of either extended warranties or service contracts. There is no mention of the CarMor Vehicle Service Agreementsold by Allstate Dealer Services, though there is a note that Allstate Dealer Services sells insurance and non-insurance products primarily to auto dealers. GEICO GEICO is a wholly-owned subsidiary of Berkshire Hathaway Inc., and therefore does not publish its own financial statements. However, Berkshire Hathaway includes select figures for the auto insurance company in its annual report GEICO's written premium total for 2009 was $13.76 billion, up from $12.74 billion in 2008. After paying claims and underwriting expenses, the pre-tax gain was $649 million in 2009, down from $916 million in 2008. Despite its massive presence in the auto insurance business, GEICO does not seem to have much involvement with the service contract or warranty industry. Its about our insurance
products page lists everything from term life insurance to condo insurance, but makes no reference to service contracts, extended warranties, or mechanical breakdown insurance. It's worth noting that GEICO sells most of its policies directly to the consumer, on the phone and over the Internet. Given that most vehicle service contracts are sold by the finance and insurance departments of auto dealerships, and given that the integrity of many of the nondealership sales channels have been severely compromised in recent years by the "expiring warranty" scams, it seems unlikely that even GEICO would be able to sell a large number of MBI policies directly to consumers. Progressive Corp. Progressive Corp. and its subsidiary the Progressive Casualty Insurance Co. are best known for their passenger car, motorcycle, snowmobile, RV, ATV and boat insurance products. Progressive's total revenue in 2009 was $14.56 billion, up from $12.84 billion in 2008. Net income neared $1.06 billion in 2009, reversing a slight loss reported in 2008. However, annual revenue has yet to surpass the levels it reached in 2006 and 2007. Progressive does not appear to have any operations in the product warranty or service contract industries. Some of its older annual reports make reference to "lease commitments and service contracts," but that has nothing to do with vehicle service contracts or extended warranties. Its only warranty-related activities are incidental. Farmers Insurance The Farmers Insurance Group of Companies is the third largest auto and home insurer in the U.S. Farmers is a subsidiary of Zurich Financial Services Ltd. Farmers is Zurich's main market brand for personal insurance in the U.S., with more than 20 million homeowners, auto and life insurance policies to its name. Farmers also provides business insurance, with a focus on the small commercial market. Zurich Financial Services was founded in 1872, and is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries, including more than 9,500 employees in North America. 6.1 CONCLUSION Automobile Insurance is one of the most important service sectors worldwide. With the advancement of technology the use of cars gas also increased, as well as the necessity of automobile insurance has also increased. This is the type of insurance that provide insurance against the losses and damages may associated with cars. This is the contract between the car owner and the insurer by which the car owner transfer all or part of the losses associated with his car to the insurer by providing specific premium. 6.2 RECOMMENDATION
The use of cars in our country has also increased to a greater extent. But the great problem is that there is no specific automobile insurance company in our country. Special effort should taken to establish specific automobile insurance company in our country. 6.3 Bibliography The Study is based on the followinh resources: Insurance and Risk Management By George Rejda Web Sources World Bank Report Road Safety Report Business Journal