Motor Insurance is by far the most common class of insurance. Vehicles registered in the name of individuals or Companies for private use are considered as Motor Private and the vehicles owned by companies used for own 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 vehicles and liabilities arising out of them.
Comprehensive Motor Policies generally provide coverage against the loss of or damage to the insured vehicle and liability towards third parties arising out its use. 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 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 in order to protect the general public and their property, Comprehensive Insurance remains an option, which 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. If the Vehicles are financed through banks or financial institutions generally they seek comprehensive cover 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 in order to rely on it in the unfortunate event of an accident. Some of the factors worth considering 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., malicious damage etc. Add on covers such Auto Assist, Vehicle out of use or Gap in value can be provided.
Generally individuals with proven claims free record can avail better terms and fleet policy would be suggested for companies owning fleet of vehicles in order to facilitate easy administration as well as cost efficiency. Some of the following considerations can economize the cost of Insurance and also enable you effectively manage your fleets.
- Choosing vehicles with safety features and cost effective repairs
- Taking ownership of vehicles by maintaining them regularly
- Regular checks of tire pressure and general consumables
- Boosting employee morale to ensure they look after company vehicle as their own
- Improving driving skills of drivers and recognizing accident free drivers
- Choosing Insurers who determines premium on risk based analysis
- Opting Higher deductibles by being self insured for portion of the risk
- Maintaining accident records to train and make drivers responsible for their actions
- Locating the fleet in remote areas
We, at Millennium Insurance Brokers with our expertise and extensive experience in the local and international markets are able to offer total Risk Management solutions on Motor Fleets and handle Insurance requirements in the most cost effective manner.