Find answers to common questions you ask.
Who needs to buy Motor Insurance?
Normally, the owner is the one who needs to buy the insurance for the vehicle. However, the Motor Vehicles
(Third Party Insurance) Act of 1958 requires the users of motor vehicles to be insured against third party risks.
What kind of coverage am I required by law to buy for my motor vehicle?
The law requires that all motor vehicles which will be driven on the roads to which the public has access must
be insured against third party risks i.e. death or bodily injury to any person caused by or arising out of the use of the motor vehicle.
Whose legal liability is covered under a Motor Insurance?
Although only the owner of the insured motor vehicle is named as the policyholder, anyone who drives the
insured motor vehicle is also insured for his legal liability as a result of the use of the motor vehicle provided
he has a valid motor vehicle driving licence and permitted by the owner to drive the motor vehicle.
What does a Motor Insurance cover?
Generally, the Motor Insurance Policy covers:
a) Loss of or damage to the motor vehicle insured
b) Legal liability to third parties for death or bodily injury and damage to their properties.
How many types of Motor Insurance covers are available?
In terms of coverage, the following types of motor insurance policies are available:
a) Comprehensive Policy - it is the type of policy with the most comprehensive coverage.
b) Third Party Fire and Theft - It provides limited coverage to the insured motor vehicle?s own damage
c ) Third Party Only - it basically complies with the requirement of the Law.
What is the coverage available under the Comprehensive Policy?
In addition to the third party liability required to be covered by law, (i.e. death or bodily injury to third
parties) the policy covers the loss of or damage to the insured vehicle due to all causes except those
specifically excluded.
The causes covered include fire external explosion self-ignition or lightning, theft,
malicious act, flood, typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature, strike,
riot, civil commotion, damage as result of crash with other vehicle.
The policy also covers damage to third
party properties.
What is the coverage available under the Third Party Fire and Theft Policy?
Apart from the third party legal liability mentioned above, the policy covers damage to third party property as well as loss of or damage to the insured vehicle caused by fire and theft.
What is the coverage available under the Third Party Only Policy?
The policy insures the Policyholder?s legal liability as a result of
a) death of or bodily injury to any person; and
b) damage to third party?s property up to the limit under the policy, (the minimum limit being ¢10 Million and could be reviewed upwards at request)
arising out of an accident caused by or in connection with the use of the insured vehicle.
What are the excluded causes under Comprehensive Policy?
The cover under the Policy does not include:
a) consequential loss such as cost of hiring another motor vehicle as a substitute to the damaged one
b) depreciation , wear and tear
c) mechanical breakdown and failure of electronic equipments
d) damage to tyres
e) driven by an unauthorized and/or unlicensed person
f) Contractual liability.
How would my claim under a Comprehensive Policy be handled by EIC?
The Company will, at its option, repair, reinstate or replace the insured vehicle or pay the
amount of the loss of or damage to the vehicle. The maximum amount payable by the Company will be the market value at the
time of the loss or damage or the Sum Insured shown in the Schedule whichever is less.