WRITE UP ON GENERAL REGULATIONS OF INDIA MOTOR TARIFF

Sl Regulation No.
No & Title
1. 1. Insurance not
provided for
2. 2. Proposal
Forms

3. 3. Policy Forms
4. 3A. Types of
Policies

3B. Rating

DESCRIPTION

Remarks

All Motor Insurance within the purview of Tariff. For risks not provided-reference be made to TAC.
Proposal form to be submitted by the insured for new insurance & at renewal in case of material
alteration except in change in IDV at renewals.
Change in IDV at renewals to be informed by insured through a signed letter.
Change in insurer: fresh proposal from insured required.

Policies to be issued only as per Standard Forms given in Tariff.

Two types of policies:1. LIABILITY ONLY POLICY: covers third party liability for TPPI/death/TPPD.Includes PA for
owner-driver.
2. PACKAGE POLICY: covers loss/damage to vehicle also in addition to liabilities under 1 above.
Imp.: Restricting the scope of cover for loss/damage to vehicle under Package Policy-without any
reduction in Tariff rates is permitted. No other alteration,change,extension allowed without TAC
approval.
RATES are minimum.
LOADING: For adverse claims experience of the vehicle & individual risk perception: loading by 100%
. Further loading of 100% also permitted if experience still adverse.

[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

Written proposal
is also a must as
per Protection of
Policyholders
Interests
Regulation of
IRDA.
Section 6 of Tariff

Maximum loading
allowed:
100%+100%
Page 1

5. 4. Extension of
Geographical
Area.

Policies can be extended to include: (a) Bangladesh; (b) Bhutan; (c) Nepal; (d) Pakistan;
Contd
(e) Sri Lanka; & (f) Maldives at flat rate~ Package Policy..Rs. 500 per vehicle irrespective of class of vehicle.
~ Other Policies.Rs. 100 per vehicle irrespective of class of vehicle.
Exclusions: Cover for damage to vehicle/injury to its occupants/TP liability for vehicle during air
passage/sea voyage for the purpose of ferrying vehicle to extened geographical area.
6. 5. Vintage Cars
Cars manufactured prior to 31-12-1940 & duly certified by the Vintage & Classic Car Club of India.
7. 6.Classic Cars
Car manufactured after 31-12-1940 but before 31-12-1970. No special rating or cover available.
8. 7.Valued Policies Not permitted except for vintage cars.
9. 8.Insureds
IDV will be sum insured & will be fixed at commencement at each policy period for each
Declared Value
insured vehicle.
(IDV)
HOW TO FIX: On the basis of manufacturers listed selling price of the brand & model ,at the
commencement of insurance/renewal and adjusted as per depreciation schedule given below.
IDV of side car/ accessories fitted-but not included in manufacturers listed price-to be fixed likewise.
SCHEDULE OF DEPRECIATION(other than for Motor Trade Policies):AGE OF VEHICLE
% OF DEP. FOR ARRIVING AT IDV
1. Not exceeding 6 months
5%
2. Exceeding 6 months but not exceeding 1 year
15 %
3. Exceeding 1 year but not exceeding 2 years
20 %
4. Exceeding 2 years but not exceeding 3 years
30 %
5. Exceeding 3 years but not exceeding 4 years
40 %
6. Exceeding 4 years but not exceeding 5 years
50 %
[Separate table for Motor Trade Policies-Not reproduced here].
IMPORTANT NOTES: 1. For vehicles beyond 5 years & obsolete models: IDV to be determined on
the basis of an understanding between inurer & insured.
2. IDV applicable for Total Loss(TL)/Constructive Total Loss(CTL) claims only.
3. CTL if aggregate cost of retrieval &/or repair exceeds 75 % of IDV.
4. IDV will not change during policy period for TL/CTL claim settlement.
Insurers liability in any case not to exceed IDV less value of wreck in as is where is condition.
10. 9. Depreciation
For all categories of vehicles & accessories:on Parts for
1. Rubber/nylon/plastic parts,tyres & tubes, batteries & air bags..50 %
Partial Loss
2. Fibre glass components...30 %
[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

IMT 1

IMT 2
IMT 2
IDV is applicable
for Total Loss(TL)
& Constructive
Total Loss(CTL)
claims only.
No depreciation
on brand new
vehicles covered
under Motor
Trade Policies.

Page 2

Claims
11. 10. Geographical
Zones

12. 11. Period of

Insurance
13. 12. Premium
Rates for Short
Period Cover
14. 13. Display of
Premium
15. 14. Computation
of Premium
16. 15. Payment of
Premium
17. 16. Minimum
Premium
18. 17. Transfers

3. Glass parts..Nil
Contd
Other parts(including woodden parts): Depreciation from-minimum 5% to maximum 40%,
from upto 6 months to 10 years. More than 10 years: 50%.(Table not reproduced here).
Rating-depends upon the location of office of registration of vehicle:(i) Pvt cars/Motorised Two Wheelers/Commercial vehicles rateable under Section 4.C.1 & C.4.Zone A: Ahmedabad,Bangalore,Chennai,Hyderabad,Kolkata,Mumbai,New Delhi,Pune.
Zone B: Rest of India.
(ii) Commercial vehicles excluding vehicles rateable under Section 4.C.1 & 4.C.Zone A: Chennai, Delhi/New Delhi,Kolkata,Mumbai.
Zone B: All othe State capitals.
Zone C: Rest of India.
Twelve months. No policy for more than 12 months. For shorter duration:for arriving at a particular
renewal date/other convenient reason on pro rata basis-subject to certain conditions & with a warranty.
Short period cover/renewal for less than 12 months on following rates: 20% of annual premium upto 1
month, & finally full premium above 8 months.(Table not reproduced here).
NOTES: 1. Extensions only by charging premium on short period rates.
2. Short period covers/renewals not permissible for Liability Only Policies.
Package Policy: OD & Liability components to be displayed separately in policy schedule.
Loadings/Discounts: To be displayed separately.
Rounding Off: OD & Liability premiums to be rounded off to nearest rupee,separately.
Premium,discounts,loadings etc to be calculated as per Tariff.

Cover/renewal
not permissible
for Liability Only
Policy.

Full premium to be collected before commencement of cover. Installments not permitted.

Rs 25 per vehicle:For vehicles specifically designed/modified for use of blind,handicapped,mentally
challenged people.
Rs 100 per vehicle: all other vehicles.
Liability Only Cover-either under Liability Only Policy or Package Policy: deemed to have been
transferred on transfer of ownership,from the date of transfer. Transferee to apply within 14 days to
transferee with complete information to insurer.
Package Policy-Own Damage section:Specific request from transferee with consent of transferor.
NCB to be adjusted/recovered as per transferees entitlement.

[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

IMT 3

Page 3

Fresh completed proposal form to be obtained both for Package/Liability Only Policy.
Transfer only on getting acceptable sale evidence plus fresh proposal form.
Rs 50 as transfer fee.
Old certificate to surrender.If not available then to obtain a declaration.
19. 18. Change of
Substituition by another vehicle of same class for balance period of policy.Adjustment of premium on
Vehicle
pro-rata basis from the date of substitution. If substituted vehicle is not a total loss, evidence for
continuation of insurance on substituted vehicle required before such substituition.
20. 19,20,21.
Policies & Certificates to be issued in the name of:Vehicles Subject
1. Hire purchase agreement: Hirer only-Owners interest can be protected by endorsement.
to Hire Purchase/
2. Lease agreement: Lessee only-Lessors interest can be protected by endorsement.
Lease/
3. Hypothecation agreement: Registered owner only-Pledgees interest can be protected by
Hypothecation
endorsement.
Agreements
For PA to cover in all above cases: owner-driver will continue to be deemed as owner-driver.
21. 22. Cover Note
To be issued only in Form 52 of Rule 142(1) of Central Motor Vehicle Rules 1989.
As per Rule 142(1) covernote valid for 60 days & insuer shall issue a policy before expiry date.
22. 23. Certificate of To be issued only in Form 51 of Rule 141 of Central Motor Vehicles Rules 1989.
Insurance
23. 24.Cancellation
Cancellation: (a) by insurer: 7 days notice of cancellation by recorded delivery.Pro-rata premium
of Insurance &
refund for balance policy period.
Double
(b) by insured: 7 days notice of cancellation. Premium retention on short period scale for period for
Insurance
which cover was in existance ;subject to (i) no claim; & (ii) minimum premium as per Tariff.
(c) only after ensuring vehicle insured elsewhere at least for Liability Only cover & surrender of
original certificate for cancellation.
(d) Insurer to inform RTA concerned by recorded delivery.
Double Insurance for same vehicle:> identical period: one policy may be cancelled.
>Different periods: policy commencing at a later date is to be cancelled.
>With two different offices of same insurer: 100% refund on policy commencing later.
>With two different insurers: pro-rata refund on policy commencing later.
>If due to bank/financial instituition requirement given in writing, earlier policy required to be cancelled:
premium retention on short period scale for which cover was in force.
In all cases: Minimum premium as per Tariff to be retained; & no refund of premium if claim on either
policy when both policies were in operation but prior to cancellation of one of them.
[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

Contd
IMT 4

IMT 5
IMT 6
IMT 7
Reproduced in
Section 6 of Tariff
Reproduced in
Section 6 of Tariff

Page 4

24. 25. Cancellation

and issuance of
Fresh Certificate
of Insurance
25. 26. Certificate or
covernote
destroyed,torn,
soiled, defaced
or mutilated
26. 27. No Claim
Bonus

For any changes in policy during its currency: certificate of insurance to be surrendered.
Information about change in engine/chassis nos. to be intimated to insurer immediately Contd
with RTOs endorsement.
Rs 50 for each issuance of fresh Certificate of Insurance.
Fresh certificate/covernote to be issued where Insured-declares with full particulars of
circumstances for loss/destruction & efforts made to find; or returns such torn,soiled,mutilated or
defaced certificate or covernote.
To be marked duplicate. Original to be returned to insurer if found later by insured.
(a)NCB only on OD section except on- Trade Policies: Road Transit Risks; Road Risks: Internal Risks;
-Only Fire &/or Theft Risks
For Liability+Fire &/ or Theft Risks: only on Fire &/or Theft portions.
Entitlement only after expiry of full duration of 12 months.
(b) Table: Discount on premium, uniform for all types of vehicles, ranges from minimum 20% to
maximum 50%, corresponding with 1 to 5 consecutive claim free years.(Table not reproduced here).
Sunset Clause: Protection of NCB,as per previous Tariff, till a claim arises-in which case it will
become NIL.Subsequent NCB as per above table.(IST July 2002 to 30.06.2003)
(c) NCB to compute on OD premium after deducting rebate for Vehicle Laid Up.
(d) In vehicle transfer NCB will be as per transferees eligibility.
NCB for substitiuted vehicle only if of same class. In case of death of individual insured NCB will pass
on to the person with custody of vehicle.
(e) NCB of instituition vehicle will pass on to employee on transfer of vehicle, if earlier allotted &
operated exclusively by him.
(f) Change of insurer-same NCB to allow subject to confirmation. If insured unable to produce
evidence, declaration to be obtained.
Insurer obliged to write to policy issuing office of previous insurer within 21 days & previous insurer
obliged to reply within 30 days.
(g) NCB on sale of vehicle-not replaced immediately or laid up- can be granted upto 3 years.
(h) NCB earned abroad: can be allowed within 3 years.
(i) NCB on renewal only upto 90 days [except in (g) above].For military/para military personnel in
forward areas,renewal upto 365 days-on individual basis-with a declaration in writing that (contd)
the vehicle was not in use during the interim period.l

[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

Rs 50 as
administartive
charges.

Failure to write
to previous
insurer within 21
days & failure to
reply by previous
insurer within 30
days will be
breach of Tariff.
Page 5

27. 28. Automobile

Association
Membership
Discount
28. 29. Discount for
Vintage Cars
29. 30. Discount for
Anti-Theft
Devices
30. 31. Concession
for Laid-up
Vehicles

(j) NCB only if vehicle insured continuously for 12 months without break.[Except for (g),(h),(i) above].
5% of OD premium on new insurance/renewal of Package Policy only. Maximum Rs 200 for car;
Rs 50 for two wheeler. Discount only on Package Policy. To individuals, joint owners of companies
who are members. Hire purchaser etc. also eligible.
If membership obtaied during policy currency: allow pro-rata discount. Similarly if membership
cancelled during policy currency-recover pro-rata discount.
25% on OD premium. Pro-rata for mid-term certification.

Anti-theft devices approved by Automobile Research Association of India(ARAI),Pune & installation in

vehicle certified by any Automobile Association: Discount 2.5% on OD premium:maximum Rs 500.
On pro-rata basis for mid-term basis.
Vehicles laid-up in garage & not in use for not less than 2 consecutive months:I. Liability Only Policy:at insureds option-(a) pro-rata return on net premium-to be adjusted at
renewal. No cash refund; or (b) policy period extension at renewal.
II. Package Policy: Liability restricted to Fire &/or Theft. At insureds option: (a)return pro-rata
premium & charge pro-rata premium for Fire/Theft risk/s.Calculation on net premium.To be
adjusted at renewal. No cash refund; or (b) policy period extension at renewal.
I & II subject to: (i) vehicle not under repairs as a result of claim under policy; (ii) previous written
notice from insured; (iii) certificate of insurance returned to insurer; (iv) period not to extend beyond 12
months from the policy expiry date.
No premium return for lay-up of trailers, vehicles used for hire & reward or for Motor Trade purpose.
31. 32. Prohibition of Not permitted more than once during currency of a policy.
Mid term inclusion/cancellation
of extra benefits.
32. 33. Concession
50 % discount on OD premium for both
for specially
l Use confined to own premises-all vehicles except as otherwise provided in Tariff: 33 1/3 % discount.
(i)
designed/ modi- (ii) Use confined to sites-for goods carrying vehicles: 33 1/3 % discount.
(ii)
fied vehicles for No Certificate/covernote which includes a certification to be issued in these cases.
blind, handicapped & mentally challenged
[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

Not allowed on
Fire &/or Theft
risks only
policies.
IMT 8
IMT 9
IMT 10
Rs 15 as
administrative
charges.
IMT 11-A
IMT 11-B
IMT 11-C

IMT 13
IMT 14

Page 6

persons.
35. 36. Personal A.
Accident (PA)
Cover under
Motor Policy B.
C.
D.
E.
F.
36. 37. Cover for G.
vehicles
imported without
customs duty.
37. 38. Vehicles H.
requisitioned by
Government I.
38. 39. Third Party
J.
Property
K.
Damage Cover
L.
M.
N.
O.
39. 40. Compulsory
P.
Deductibles
Q.
R.

A.Compulsory PA cover for owner-driver: applicabe under both Liabilty Only & Package Policies. Cover
to registered owner in person if he holds an effective driving licence: while driving, mounting/
dismounting or travelling in insured car as a co-driver.
Not granted-where a vehicle is owned by a company,firm,corporate body; or where owner does not
have an effective D/L.Premium not to be charged & delete provision.If insured has more than one
vehicle-PA cover for one vehicle only at his option.
B. Optional PA cover for persons other than owner-driver: Maximum CSI Rs 2 lacs per person for
following: 1. Private cars,three wheelers rated as pvt cars, two wheelers-not for hire & reward: for
insured or any named person other than paid driver & cleaner.
2. Private cars,three wheelers rated as private cars, two wheelers-not for hire & reward: unnamed
passengers limited to registered carrying capacity-other than insured,his paid driver & cleaner.
3. All classes of vehicles: Paid driver,cleaner & conductor
4. Two wheelers for hire & reward: Unnamed hirer/driver.
(Scope of covers,CSI,premium etc. not reproduced here).
Vehicles of embassies,consulates etc where import duty element is not included in IDV: Load OD
premium by 30%.

Not for
commercial
vehicles under
Sections E,F & G
of Tariff.

IMT 15
IMT 16
!MT 17
!MT 18
IMT 19

Automatically held covered during requisition period without any additional premium.
Loss/ claim payable by insurer in excess of amount paid by government.
A. Limits for TPPD for other than goods carried in insured vehicle :
Rs 1 lakh for private & commercial 2 wheelers;
Rs 7.50 lakhs for all other commercial vehicles, 3 wheelers, taxis,private cars & 2 wheelers
rateable under commercial vehicle Tariff.
B. At inception,insured can opt out-statutory limit of Rs 6000 will apply. Premium discount allowed.
Mid-term term change of TPPD not permitted.
From claims under OD section provided for all classes of vehicles, viz. 2 wheelers, 3 wheelers,private
cars, taxis, commercial vehicles of all classes.(Table not reproduced here).
Notes: 1. Also applicable where restricted covers as per GR 45 A/B granted{Fire &/or Theft Risks}.
2. Endorsements- a. for commercial vehicles,excluding taxis & 2 wheelers for carrying passengers.

[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

Not for Class G

(Motor Trade
Internal Risks)
IMT 20

IMT 21
IMT 22
Page 7

S.
T.
40 41. Electrical/U.
Electronic
Fittings
42. Use of CNG/
V.
41. LPG fuel
W.
X.
42. 43. Fibre glass
Y.
fuel tanks
43. 44. Vehicles Z.
used for Driving
Tuitions
AA.
44. 45A. Restricted
BB.
Cover for Fire &/
or Theft RisksCC.

b. for pvt cars, 3 wheelers-rated as pvt cars, 2 wheelers & taxis.

3. Exclusion under a. of Endorsement 21 can be reinstated at additional premium.
Fitted but not included in manufacturers selling price: Premium @ 4 % of value of such fittings;
specifically to be declared by insured; for OD section.
(a) Bi-fual(petrol/diesel & CNG/LPG), permitted by RTA: CNG/LPG kit fitted to insure separately @ 4%
of value of kit-specifically to be declared by insured. Kit fitted during the currency of policy,charge prorata premium.
(b) Vehicle fitted with only CNG/LPG kit as appd by RTA & value of CNG/LPG kit is not seaprately
available-5% extra on OD premium.
(c) Rs 60 extra per vehicle for TP liability cover.
Rs 100 extra for OD section for Class D commercial vehicles; Rs 50 extra for all other vehicles.

Vehicles used by Driving Schools recognised by RTA for giving tuition, with double clutches & brakes,
with professional tutor: OD premium+ 60% exra; TP premum as per Tariff.
For 3 wheelers & 2 wheelers: 60% extra on both OD & TP premium.
Only when vehicle in garage & not in use: Written declaration from insured. Cover for Fire &/or Theftwithout Liability Only cover: Fire or Theft only: 0.50% of IDV; Fire+Theft: 0.75% of IDV.
NOTES: Prohibited for all vehicles under Class D( Misc & Spl. Type);Class E,F & G(Motor Trade Risks).
(Compulsory Dedutibles,extras, discounts applicabe not reproduced here).
45. 45B. Restricted
DD. Restricted Liability Only+Fire &/or Theft Risks, subject to minimum premium as per GR 16.
Cover for LiabiEE. NOTES: Prohibited for Class D(Misc & Spl. Type) vehicles.
PTO
lity Only & Fire
FF.
(Table of premium,Compulsory Deductibles,extras,discounts applicabe not reproduced here.)
&/or Theft Risks
GG.
HH.
46. 46. Vehicles II. Pvt cars,taxis & 2 wheelers running on battery,as appd by RTAdriven by nonJJ. Pvt Cars/Taxis: Rate as pvt cars/taxis upto 1000cc(Refer to respective tariff);
conventional KK. Motorised 2 wheelers: Rate as motorised 2 wheelers with capacity exceeding 150cc but not exceeding
source of power 350cc(refer to respective tariff).
LL. For vehicles driven solely by any other non-conventional source of power appd by RTA-refer to TAC.
47. 47. Towing MM. In addition to limit already provided under the standard Package polocies, higher towing charges can be
charges for
opted,subject to charging extra premium as given in the table (not reproduced here)
[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

IMT 23
IMT 24
IMT 25
(Modified)
To be accounted
under item f) of
A OD Premium
LIMITATION AS
TO USE clause
to be modified.
IMT 26

Page 8

vehicles which
have met with an
accident
48. 48. Submission
NN. Extensive codes provided in Section 8 of Tariff. Imperative upon insurers to submit data to TAC as per
of Statistics
Section 64 UE of Insurance Act.
OO.
49. 49. InterpreTACs clarifications & interpretations are final & binding.
tation of India
Motor tariff
IMPORTANT NOTE: This write up is compiled by us only to understand fundamentals & basics of General Regulations of India Motor
Tariff effective from 1st July 2002. At many places the language has been modifed and many an item have been condensed or not
included for the sake of brevity. Readers are advised to refer to the Tariff for full text & proper understanding of the contents.
DISCLAIMER: We will not be responsible for any errors or omissions.

[COMPILED BY SAMEER DHAWAN ASSTT.MANAGER BO I CHANDIGARH, sameer.dhawan@nic.co.in]

Page 9