Insurance of Trailer under Motor Vehicle Insurance Policy
It is observed that some of the owners of the commercial vehicle are insuring them under two parts i.e. Horse and Trailer (commonly known as “TALA”) to save premium. It is a wrong practice and contrary to the provisions of the MV Act. Under the Act, two types of trailer is defined i.e Semi Trailer or Trailer. Semi Trailer is super imposed on the propelled vehicle to carry the weight. Trailer means which hauled or drawn by the propelled vehicle. As per tariff only those trailer which are hauled or drawn by the propelled vehicle can be insured under lower rating. Further the MV Act stipulates that any additional trailer should be endorsed in the RC by way of Additional Axel. If it is not endorsed the Insurance claim can be repudiated as per warranty in the Motor Vehicle Insurance which is attached when the Trailer is insured at Trailer premium. The warranty states that the Trailer should be endorsed in the policy.
Further, to carry ODC(Over Dimensional Consignment) through hydraulic axels and number of hydraulic axels are attached to the horse depending upon the size of the consignment. As the trailer/axels were not endorsed in the RC the claim is not settled so far.
It is generally followed by those transporters who are having fleet of 100 or more vehicles. Kindly advise your client accordingly.