Abstract

As the claims-ratio in the motor vehicle insurance category has been consistently high in the past, general insurers are not willing to provide insurance for commercial vehicles. The case focuses on various aspects of insurance coverage for commercial vehicles. It discusses issues regarding the insurability of old commercial vehicles and the steps taken by insurers to discourage compre-hensive insurance of such vehicles. The case also examines the impact of insurers’ unwillingness to provide comprehensive insurance cover to commercial vehicles. In addition, the case discusses the necessity of developing fleet safety programs (by transporters).

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand different aspects of insurance cover for old commercial vehicles and the changing trends regarding the provision of insurance cover for such vehicles in India. Discuss the pros and cons of providing insurance cover to commercial vehicles.

Keywords

Claims-ratio, motor vehicle, insurance category, general insurers, insurance, commercial vehicles, insurance coverage, commercial vehicles, insurability, old commercial vehicles, comprehensive insurance, unwillingness, fleet safety programs, transporters