To
CEOs of all General Insurance Companies
(Except AIC, ECGC, Star Health, Apollo Munich & Max Bupa)

Sub: Motor Insurance – ‘Liability Only’ Cover – Standard Proposal Forms for:

(1) Private Cars / Two Wheelers and
             (2) Commercial Vehicles (other than Motor
Trade Internal Risks Policies)

For motor insurance ‘Liability Only’ cover, the standard proposal forms were earlier prescribed under the India Motor Tariff. As tariffs are no longer regulated by the Authority except for ‘Liability Only’ covers for motor third party risks, in supersession of all previous circulars, regulations and orders issued under the erstwhile tariff, the Authority now, in exercise of powers under Sec.14(2)(i) of IRDA Act-1999, prescribes standard proposal forms for ‘Liability Only Policy’ for (1) Private Cars/Two Wheelers and (2) Commercial Vehicles (other than Motor Trade Internal Risks) as set out at Annexures-1 and Annexures-2 respectively of this circular.

All insurers are directed to ensure that no other proposal forms than those prescribed here are used for third party motor insurance ‘Liability Only’ covers for the above mentioned classes of vehicles. Prescription of any other forms in contravention of this circular will be deemed to be a regulatory breach and action will be taken accordingly. Further, the provisions of any proposal forms other than what are prescribed in forms annexed will not be enforceable and will be treated as ‘non est factum’.

Insurers are advised to bring this circular to the notice of their operating offices.

        -sd-
[Prabodh Chander]
Executive Director

.