BENEFITS OF INSURANCE LAW AND NEED FOR MOTOR INSURANCE
BENEFITS OF INSURANCE LAW AND NEED FOR MOTOR INSURANCE
Principle of insurance Law : Insurable interest ; whereas the insurance can be taken only for the blood relation and not for third parties . The important is the proximate clause which is contribution .
Benefits of insurance : Agreement has to be made between the company and the insurer.There are 25 insurance companies now.In the absence of an insurer , the benefits will be transferred to the nominee. Insurance companies bear the loss of a vehicle incase of an accident and it has to be proved , not applicable for drunken driving .
Need for motor insurance : Insured declared value (IDV) , It shall be insured for the value of vehicle and the company is bound to repay only to the insured amount.
Role of IRDI : Regulatory body which sets up certain regulations and principles for the insurance schemes and the companies as well . when any issue pops up, IRDI protects the interest of the consumer and also the company .
Dispute settlement body : Appointment of ombudsman , it can be sorted out through arbitration or mediation and few cases are also forwarded to the courts .