Passenger Carrying Vehicle Insurance (PCV)
In most of the big cities, the passenger carrying vehicle businesses are booming and companies that are into PCV are adding newer vehicles to their fleet every day. More number of investment in vehicles would means more risk and liability. A PCV usually faces two types of risks, one own damage to vehicle due to accident and the second risk is due third party damage. To cover these risks, Insurance would become very important. Leading Insurance Companies have understood the need, and have come up with various innovative products (with add-on covers) that will help PCV owners breathe easy.
What is a PCV ?
- Passenger carrying vehicle or “PCV” is a motor vehicle that typically carries passengers from one destination to another , on a day to day bases .
- As many travelers use this mode of transport on a day on day bases , it becomes important to maintain these vehicles and get them covered again all types of risks .
- Example :Bus , Mini-Bus , Coach
Section 1 – Loss of or Damage to the Vehicle Insured
The Company will indemnify the Insured against loss or damage to the vehicle insured hereunder and/or its accessories whilst thereon:
- By fire, explosion self-ignition or lightning;
- By burglary, housebreaking or theft;
- By riot and strike;
- By earthquake (Fire and Shock Damage);
- By flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost;
- By accidental external means;
- By malicious act;
- By terrorist activity;
- Whilst in transit By road rail inland - waterway lift elevator or air;
- By landslide, rock slide.
Subject to deduction for depreciation at the rates mentioned below in respect of parts replaced:
1. For all rubber/nylon/plastic parts, tyres and tubes, batteries and air bags 50%
2. For fiber glass components 30%
3. For all parts made of glass Nil
4. Rate of depreciation for all other parts including wooden parts will be as per the following schedule
5. Rate of Depreciation for painting: In the case of painting, the depreciation rate of 50% shall be applied only on the material cost of total painting charges. In case of a consolidated bill for painting charges, the material component shall be considered as 25% of total painting charges for the purpose of applying the depreciation.
1. The Company shall not be liable to make any payment in respect of:
(a) Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakages;
(b) Damage to tyres and tubes unless the vehicle is damaged at the same time in which case the liability of the Company shall be limited to 50% of the cost of replacement. And
(c) Any accidental loss or damage suffered whilst the Insured or any person driving the vehicle with the knowledge and consent of the Insured is under the influence of intoxicating liquor or drugs.
2. In the event of the vehicle being disabled By reason of loss or damage covered under this Policy the Company will bear the reasonable cost of protection and removal to the nearest repairer and re delivery to the insured but not exceeding in all Rs. 1500/- in respect of any one accident.
3. The insured may authorize the repair of the vehicle necessitated By damage for which the Company may be liable under this Policy provided that: (a) the estimated cost of such repair including replacements, if any, does not exceed Rs. 500/-;
(b) The company is furnished forthwith with a detailed estimate of the cost of repairs; and
(c) The Insured shall give the Company every assistance to see that such repair is necessary and the charges are reasonable
Insured Declared Value (IDV)
The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘SUM INSURED’ for the purpose of this Policy which is fixed at the commencement of each policy period for the insured vehicle.
The IDV of the vehicle (and accessories if any fitted to the vehicle) is to be fixed on the basis of the manufacturer’s listed selling price of the brand and model as the vehicle insured at the commencement of insurance/renewal and adjusted for depreciation (as per scheduled below):
The schedule of age-wise depreciation as shown below is applicable for the purpose of Total Loss/Constructive Total Loss (TL/CTL) claims only.
The insured vehicle shall be treated as a CTL if the aggregate cost of retrieval and/or repair of the vehicle, subject to terms and conditions of the policy, exceeds 75% of the IDV of the vehicle.
IDV of vehicles beyond 5 years of age and of obsolete models of vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between the insurer and the insured.
IDV shall be treated as the ‘Market Value’ throughout the policy period without any further depreciation for the purpose of Total Loss (TL) / Constructive Total Loss (CTL) claims.
No Claim Bonus
Any one claim will bring the NCB back to 0% and the same will increase in the same order as mentioned above and will become 50% in 5 non claim years.
While selling the old car remember to get an NCB in abeyance letter from the Insurance Company, the NCB percentage will translate to NCB discount while buying the New vehicle .
Section 2 - Liability to Third Party
Subject to the limits of liability as laid down in the Schedule here to the Company will indemnify the insured in the event of an accident caused by or arising out of the use of the vehicle against all sums including claimant’s cost and expenses which the insured shall become legally liable to pay in respect of:
Death of or bodily injury to any person caused By or arising out of the use (including the loading and/or unloading) of the vehicle.
Damage to property caused By the use (including the loading and/or unloading) of the vehicle.
Provided always that:-
The Company shall not be liable in respect of death, injury damage caused or arising beyond the limits of any carriage way or thoroughfare in connection with the bringing of the load to the insured vehicle for loading thereon or the taking away of the load from the insured vehicle after unloading there from.
b) Except so far as is necessary to meet the requirements of the Motor Vehicle Act the Company shall not be liable in respect of death or bodily injury to any person in the employment of the insured arising out of and in the course of such employment. Section ii liability to third parties Nature of Injury Scale of compensation
c) Except so far as is necessary to meet the requirements of the Motor Vehicle Act in relation to the liability under the Workmen's Compensation Act 1923 the Company shall not be liable in respect of death or bodily injury to any person (other than a passenger carried by reason of or in pursuance of a contract of employment) being carried in or upon entering or mounting or alighting from the insured vehicle at the time of occurrence of the event out of which any claim arises.
d) The Company shall not be liable in respect of damage to property belonging to or held in trust By or in the custody of the insured or a member of the insured's household or being conveyed By the insured vehicle .
e) The Company shall not be liable in respect of damage to any bridge and/or viaduct and/or to any road and/or anything beneath By vibration or By the weight of the insured vehicle and/or load carried By the insured vehicle.
f) Except so far as is necessary to meet the requirements of the Motor Vehicles Act the Company shall not be liable in respect of death and/or bodily injury to any person(s) who is/are not employee(s) of the insured and not being carried for hire or reward, other than owner of the goods or representative of the owner of goods being carried in or upon or entering or mounting or alighting from the insured vehicle described in the Schedule of this Policy.
2. The Company will pay all costs and expenses incurred with its written consent.
3. In terms of and subject to the limitations of the indemnity granted By this section to the insured, the Company will indemnify any driver who is driving the vehicle on the insured's order or with insured's permission provided that such driver shall as though he/she was the insured observe, fulfill and be subject to the terms exceptions and conditions of this Policy in so far as they apply.
4. The Company may at its 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 Policy; 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 Policy.
5. In the event of the death of any person entitled to indemnity under this policy the Company will in respect of the liability incurred By such person indemnify his/her personal representative(s) in terms of and subject to the limitations of this Policy provided that such personal representative(s) shall as though such representative was the insured observe, fulfill and be subject to the terms exceptions and conditions of this Policy in so far as they apply.
Section 3 - Towing Disabled Vehicles
The policy shall be operative whilst the insured vehicle is being used for the purpose of towing any one disabled mechanically propelled vehicle and the indemnity provided By Section 2 of this policy shall subject to its terms and limitations be extended to apply in respect of liability in connection with such towed vehicle; Provided always that,
a) Such towed vehicle is not towed for reward.
b )The Company shall not be liable By reason of this section of this policy in respect of damage to such towed vehicle or property being conveyed there by.
Section 4 :Personal Accident Cover for Owner-driver
Subject otherwise to the terms, exceptions, conditions and limitations of this policy, the Company undertakes to pay compensation as per the following scale for bodily injury/death sustained By the owner-driver of the vehicle, in direct connection with the vehicle insured or whilst mounting into/dismounting from the insured vehicle or whilst traveling in the insured vehicle as a co-driver, caused By violent accidental external and visible means which independent of any other cause shall within six calendar months of such injury result in: section iii - towing disabled vehicles.
1.Any accidental loss or damage and/or liability caused sustained or incurred outside the geographical area;
2.Any claim arising out of any contractual liability;
3. Any accidental loss damage and/or liability caused sustained or incurred whilst the vehicle insured herein is
a. Being used otherwise than in accordance with the ’Limitations as to Use’. or b. Being driven by or is for the purpose of being driven by him/her in the charge of any person other than a Driver as stated in the Driver's Clause.
a. Any accidental 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 ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of this exception combustion shall include any self - sustaining process of nuclear fission.
5. Any accidental loss or damage or liability directly or indirectly caused by or contributed to by or arising from nuclear weapons material.
6. Any accidental 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 operations (whether before or after declaration of war) civil war, mutiny rebellion, military or usurped power or by any direct or indirect consequence of any of the said occurrences and in the event of any claim hereunder the insured shall prove that the accidental 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 thereof and in default of such proof, the Company shall not be liable to make any payment in respect of such a claim