Difficult Terminologies Explained
Legal liability (as applicable to commercial vehicles [taxis] excluding goods carrying and buses)
• Legal liability to non fare-paying passengers other than statutory liability (except the Fatal Accidents Act, 1855)
• Legal liability to non fare-paying passengers who are not employees of the insured
• Legal liability to fare-paying passengers excluding liability for accidents to employees of the insured arising out of and in the course of their employment
• Legal liability to paid driver and/or conductor and/or cleaner employed in connection with the operation
of the motor vehicle
EMI cover (this add-on cover is applicable only if it is mentioned in the policy schedule)
• The company will indemnify the insured to pay, on occurrence of the covered event (if as a result of an accident to the insured’s vehicle, the vehicle is required to be kept in any of the company’s authorized garages for repairs of more than 30 consecutive days) EMI amount(s) falling due in respect of the auto loan, subject to maximum sum insured.
Daily allowance (garage cash) benefit (this add-on cover is applicable only if it is mentioned in the policy schedule)
• The company will make an allowance to the insured for loss of use of the insured vehicle due to risks covered in the policy schedule, up to a maximum of seven days.
No-claim bonus (NCB) protection
• The insured will be entitled to NCB as per the policy schedule, up to a maximum of 50 per cent, in spite of claims made on the policy (maximum of not more than three claims on the policy).
• The company undertakes to deduct no amount for depreciation in case parts are replaced on account of damage to the vehicle insured and/or to its accessories (shall be applicable to the first two  claims during the policy period and any subsequent claim[s] shall be subject to a deduction for depreciation at the rates mentioned in the policy terms and conditions).