Geographical Zones and Extensions in Motor Policy

Find out different Types of Geographical Zones in motor policies and how it effects Motor Insurance Premiums and also find out what is Geographical area Extensions and uses of Geographical area Extensions…

Whole of India has been divided into the following Geographical Zones depending upon the location of the office of registration of the vehicle concerned.

Types of Geographical Zones

Private Cars/ Motorized Two Wheeler / Commercial Vehicles ratable under 4 wheeled / 3 wheeled Passenger carrying vehicle carrying capacity not exceeding 6 passengers and 2 wheeled Passenger Carrying Vehicle

• All Commercial Vehicles excluding vehicles ratable under 4 wheeled / 3 wheeled Passenger carrying vehicle carrying capacity not exceeding 6 passengers and 2 wheeled passenger carrying vehicle.

• Based on the type of vehicle and place of registration Zones will be decided and Premium Calculation on own damage cover will be changed.
• Third party/Liability premiums should not effect by Geographical Zones

Geographical area Extensions in Motor Policies

Motor Policies may extend to other neighboring countries by paying some extra premium. This is called Geographical extension in Motor policies.

Normally Geographical Extension uses in case of road trips with friends and family members beyond Indian Borders.

• The Geographical Area of Motor Policies may be extended to include following countries
  • Bangladesh
  • Bhutan
  • Nepal
  • Pakistan
  • Sri Lanka
  • Maldives

• Geographical Extension may be done by charging a flat additional premium for a period not exceeding 12 months.
• Geographical extensions specifically exclude cover for damage to the vehicle/ injury to its occupants/ TP liability in respect of the vehicle during air passage/ sea voyage for the purpose of ferrying the vehicle to the extended Geographical Area.