Motor Insurance is by far the most common class of insurance. Vehicles registered in the name of organizations for private use are considered as Motor Private and the vehicles owned by companies used for their business are considered as Motor Commercial. Vehicles used for carrying goods for reward or Vehicles leased for transportation purposes are considered as General Cartage. Vehicles rented out to individuals or leased to companies are considered as Rent-A-Car. Vehicles engaged in carrying fare paying passengers are called Taxi. Insurance covering vehicles whilst in the care and custody of Automobile dealers or Garages, driven for repairs and testing purposes are called Motor Trade or Trade plate policies. Specific policies are available to protect the vehicles and liabilities arising out of them.
Comprehensive Motor Policies generally provide coverage against the loss of or damage to the insured vehicle as well as the liability towards the third parties. Third party liability includes legal liability arising from damage to Third party property and injury or death of the third party. Passengers are generally considered as the third party provided they are not immediate family members or employees of the Insured or the driver. Specific extensions are required to protect members of the family or employees of the Insured or the driver.
While Third Party Insurance is mandatory in most of the Middle Eastern countries. to protect the general public and their property, Comprehensive Insurance remains the best option, as it covers accidental loss of or damage to the insured vehicle apart from the third party legal liability. Vehicles can also be insured against Third Party Liability extended to include the risks of fire and theft. Banks or financial institutions generally seek comprehensive coverage for the vehicles financed by them, with the interest on the vehicle assigned to them through a Hire Purchase Clause.
While taking up an Insurance Policy one should consider the standing or reputation of the Insurance Company in the market and the scope of cover provided under their Policies before making a decision. Some other factors worth considering but not limited to are the liability limits, liability to family members, liability to employees, limitations of use, deductibles, agency repair options, protection to driver and passengers, personal effects, territorial limits, natural calamities, War & S.R.C.C., as well as malicious damage coverage. Add on covers such as Auto Assist, Vehicle out of use or Gap in value can also be provided.
Drivers with proven claims free record can generally avail better terms. Fleet policy would be suggested for companies owning a fleet of vehicles to facilitate easy administration as well as cost efficiency. Some of the following considerations can economise the cost of Insurance and enable you effectively to manage your fleets:
The team at Millennium Insurance Brokers have the expertise and extensive experience in the local as well as international markets, and can offer total Risk Management solutions on Motor Fleets and handle Insurance requirements in the cost-effective manner.