This situation is one of Double Insurance. In such cases, one of the policies is cancelled, provided there are no claims reported in either of the policies.

 Refund is granted on a pro rata basis for the period both the policies are in force concurrently. If one policy is applicable during the period 1.1.2000 to 31.12.2000, while the other is from 1.3.2000 to 28.2.2001. In case the first policy is cancelled on 1.4.2000, refund is made on pro rata basis for the period 2.4.2000 to 31.12.2000. In case the second policy is cancelled on 1.4.2000, then the refund is made for the period 2.4.2000 to 28.2.2001.

However if there is a claim on 1.4.2000, clearly both the policies will cover it. In such cases, the Contribution Condition of the policy is invoked, which states that each of the policies will bear its rate able proportion of the claim.

The most common form of disputes that arise between the insured and the insurer is with regard to either admission of liability or the quantum of the claim.

 In case of disputes regarding quantum of the claim, where the liability under the policy is admitted by the insurers, it is a condition of the policy that such disputes be referred to an arbitrator, as per provisions of the Indian Arbitration Act,1940.

In case the decision of the arbitrator is disputed by any party, then that party can approach the proper forum of either the Consumer Forum or the Civil Court. Disputes regarding admission of liability is always referred to the Consumer Forum or the Civil Court.

If a motor insurance policy expires and is not renewed in time, two problems arise.

Firstly, if the insured was enjoying a No Claim Bonus in the previous policy and there is no claims made during that period, the bonus eligible on the current policy is forfeited and the policy is treated afresh for the purpose of bonus application, if the policy is not renewed within 90 days of its expiry

Secondly, if the policy expires and is not renewed in time, before granting the renewal on Comprehensive terms, the insurance company officials have to physically inspect the vehicle, before granting the cover. This may cause a lot of inconvenience

It is, therefore advisable to renew the policies in time so that there is no interruption in the period

The provisions of the Motor Vehicles Act largely influence motor insurance in India. Offences relating to vehicular documents can affect the contract of insurance adversely. 

 If the certificate of insurance is not valid at the time and date of accident, there is no question of claim under the policy, as the risk would have operated beyond the period of insurance. Just imagine the fate of the owner of a vehicle in case he does not have a valid policy and fatally injures a pedestrian by accident. The entire liability that would arise out of the third party claim would have to be borne by him. And that would mean a lot of money.

The certificate of registration not only proves ownership of the vehicle but also gives it an identification number. If the vehicle is not registered in a person's name, he cannot be rightfully the owner of the same. He is therefore not entitled to claim any insurance money arising on account of accident to the vehicle. When a vehicle is sold, the buyer should necessarily get the ownership transferred in his name by means of a transfer endorsement in the RC book. An intimation should be given to the insurance company also to endorse the insurance policy accordingly.

The driving license is a very important document. The insurance companies by means of a warranty in the policy specifically mention that the company shall not be liable to pay any loss or damage arising out of an accident, if at the material time the driver was not holding a valid and effective driving license.

Valid means that the driver should possess the license entitling him to drive that particular type of vehicle. A person holding a driving license to drive a car is not entitled to drive a motor cycle.

Effective it means that the license should be in force. If any of these conditions are not satisfied the driving license is treated to be invalid and claims if made are rejected by the insurance companies.

A learner's license is said to be valid and effective, if an "L" board, according to specifications of the Act, is installed in the front and rear of the vehicle, and a person holding a valid and effective driving license of the vehicle being driven, is seated beside the holder of the learner's license.

The permit is a document issued to commercial vehicles authorising its use and route. Normally we find the words 'National Permit' written on the hood of trucks or buses. These vehicles are permitted to be used anywhere in India.

If a truck meets with an accident in Gujarat whereas it possesses a permit to be used in Maharashtra only, the insurance company rejects the claim or makes a suitable deduction from the claim amount, for the breach.

The fitness certificate is also issued to commercial vehicles as a proof of its roadworthiness for its particular use. If a vehicle does not have such a certificate and meets with an accident, the insurance companies may reject the claim if the insured cannot prove that the vehicle was roadworthy otherwise and the accident had nothing to do with its roadworthiness. If the vehicle had a fitness certificate and it had expired, insurance companies admit the claim but make a suitable deduction from the amount as penalty for the breach.

If there is an accident causing injury or damage to any person, animal, vehicle or property, the driver of that vehicle should render all possible help to the injured. He should also report the matter to the nearest police station, within 24 hours of the occurrence of such accident. According to the provisions of Section 134 of the Motor Vehicles' Act, the driver/owner of the vehicle involved in an accident is responsible to convey the injured to the nearest hospital or clinic. The doctor so approached shall be duty bound to render necessary medical aid or treatment without waiting for any procedural formalities.

Here are some Do's and Don'ts, in the event of an accident