Question

How many types of policy forms are there for all types of vehicles?

• A. 2
• B. 3
• C. 4
• D. 5

Hint:

Four policy types — Act Only, Third Party, Comprehensive, and Package.

Answer 1

The Correct Option is C

Motor vehicle insurance provides protection for different categories of vehicles under standard policy forms.
The main policy forms include:
1. Act Only Policy — covers third-party liabilities as per the Motor Vehicles Act.
2. Third Party Policy — also includes coverage for liabilities beyond the Act Only Policy.
3. Comprehensive Policy — provides coverage for own damage, theft, and third-party liability.
4. Package Policy — covers additional risks such as personal accident cover, legal liabilities, etc.
Therefore, there are generally 4 standard types of motor insurance policy forms used for all vehicles.