Non Life Insurance
Can motor dealers and traders take motor insurance policy for the vehicles in their showroom?
In the course of his business a trader may have to demonstrate the vehicles to his prospective customers. These vehicles will not have certificates of registration but the transport authorities usually allot number plates which are known as Trade Certificates. These certificates are temporarily attached to those vehicles that go for the trial runs.
Alternatively, these plates are allotted the names of drivers, which are known as Driver's Plates. The cover provided by the Motor Trade Road Risks Policy is against accidental loss or damage to the vehicles while they are being driven in a public place or when they are garaged during the course of a journey, but not in or on any premises owned by or in occupation of the insured.
Manufacturers as well as dealers also use this policy for insuring vehicles, while they are in transit from their premises to the buyer's premises. For covering the vehicles while they are kept in the premises of the Dealer, the Motor Trade Internal Risks Policy is used.
