MOTOR & AUTOMOBILE INSURANCE

Automobile Insurance is based on two major classes of automobile insurance; namely, public liability or third party liability and comprehensive insurance. The former provides indemnification against the bodily injuries and or property damages to the third party only. As in most other countries, in Pakistan, it is a requiement under law to have this minimum coverage before plying any motor vehicle on the road. Comprehensive insurance provides a broader coverage. In addition to third party liability, it provides protection to the insured for damage to his own car and may include losses due to accident as well as theft. Because of the high rate of motor accident as well as theft, especially in the metropolitan cities,those who can afford it tend to buy comprehensive insurance inspite of its high premium rates. The motoe insurance generates substantial amount of revenue to the insurance companies. However, profitability for this portfolio has not been encouraging due to huge losses in the past. With the improvement in law & order situation and introduction of car tracking devices, the frequency of claims on account of theft is declining. An improvement in the profitability of this portfolio is therefore expected. in the year 2007, we hace earned gross premium of Rs. 75.46 million in Motor Portfolio.