Wondering what the warranties and clauses in a comprehensive policy mean?
Let me try to explain some of them to you based from MAPFRE-Insular's Private Car Insurance Policy. Here we go!
Repair Shop Clause (for vehicles more than 24 months old)
"It is hereby understood and agreed that in case of damage to the Scheduled Vehicle or its accessories or spare parts, if insured hereon, claim settlement shall be based on the reasonable cost of repair or installation of the same at a MAPFRE Insular Accredited Repair Shop"
the way I understand it >> this is a clause placed to make sure that no one makes outrageous claims. The insurance company will pay the reasonable price of the repair, the price shall be verified by consulting an accredited repair shop.
Valuation Clause"It is hereby declared and agreed that the liability of the Company shall not exceed the amount appearing on the Policy Schedule or the fair market value of the Scheduled Vehicle at the time or loss or damage, whichever is less."
Your claims will be based on the Amount Covered in your insurance policy. The insurance company will not pay you more than what you are insured for.
Unnamed Passenger Personal Accident Clause"In consideration of the payment of an additional premium, it is hereby understood and agreed that if any driver or passenger shall sustain accidental bodily injury shall solely and independently of any other cause result within three (3) calendar months in his death or permanent disablement as hereinafter defined, the company undertakes to pay the sum or sums of money specified hereunder-
| Scale of Benefits |
| 1. Death | 100% of the principal sum |
| 2. Permanent disablement |
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| 2.1 Total & irrevocable loss of sight in both eyes | 100% of the principal sum |
| 2.2 Total loss of use of both hands or both feet, or |
|
| physical severance at or above the wrist of |
|
| both hands or at or above the ankle of both |
|
| feet, or of one hand and one foot. | 100% of the principal sum |
| 2.3 Total loss of use of one hand or one foot or |
|
| physical severance at or above the wrist of one |
|
| hand or at or above the ankle of one foot and |
|
| total and irrevocable loss of sight in one eye | 100% of the principal sum |
| 2.4 Total & irrevocable loss of sight in one eye | 50% of the principal sum |
| 2.5 Total loss of use of one hand or one foot or |
|
| physical severance at or above the wrist of one |
|
| hand or at or above the ankle of one foot | 50% of the principal sum |
| 3. Medical expenses consequent upon such injury | Up to 10% of the principal sum |
Provided always that:
A. The total liability of the company per person for benefits paid under this endorsement arising from any one occurrence shall not exceed the principal sum per person. Furthermore, the total liability of the company during any one policy term shall not exceed the aggregate limit of indemnity stated therein.
B. Where the injury is not specified in respect of item 3 above, the company will adopt a percentage which is not inconsistent with the provisions of the scale of benefits provided above.
C. If at the time of a covered accident, the number of passengers including the driver exceeds the authorized seating capacity declared, the company shall be liable only for the proportion of indemnity that the authorized seating capacity bears to the actual number of passengers including the driver, at the time of the accident.
D. No benefit shall be payable in respect of death or injury, directly or indirectly, wholly or in part, arising or resulting from traceable to intentional self-injury, suicide (whether felonious or not) or attempted suicide, physical defect or infirmity and any accident happening while the driver is under the influence of intoxicating liquor or drugs.
E. Definition of Terms 1. "Medical Expenses" shall be the actual cost of medical, surgical or other remedial attention, treatment or appliances given or prescribed by a legally qualified physician and all hospital, nursing home and ambulance charges incurred as a result of a covered accident.
2. "Scheduled Vehicle" shall refer to the motor vehicle described in the schedule of the motor policy
3. "Passenger" shall refer to any occupant of the scheduled vehicle.
4. "Driver" shall refer to the authorized driver as defined in the motor policy
For the purpose of this endorsement, the following shall apply
Principal sum: "Sum Insured per Person" as appearing on the face of the policy
Aggregate limit of indemnity: "Limit of Liability" as appearing on the face of the policy
Except as herein varied, all other terms and conditions of this policy including any endorsement shall remain the same."
>> so I hope you understood some of these warranties and clauses after reading this entry.
For more information please contact me. =)
Karen Mangilitkmangilit@yahoo.com
09175379492
http://nonlifeinsurance.blogspot.com/
http://car-insurance-philippines.blogspot.com/
disclaimer: the information on this page is for your general knowledge. please consult your agent and your insurance policy for complete details.
