In case two motor fleet insurance policies are in existence for the same vehicles with the same covers, one of the motor fleet insurance policies is required to be cancelled.

In those situations, where one of the motor fleet insurance policies

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start at a date later than the other insurance policy, the policy which you buy later needs to be cancelled.

Here, it is important to understand that if a vehicle is at any time is insured with two different offices of the same motor fleet insurance company; a policyholder may be allowed to get 100% refund of the premium by cancelling the motor fleet insurance policy which he/she buys later. However, in that situation, where two motor fleet insurance policies are issued by two different insurers, the policy which commences later needs to be cancelled by the policyholder. The premium will be refunded on the pro-rata basis.

In those situations, where it is required by the motor fleet insurance policyholder to cancel the earlier dated policy, then the insurer will deduct the premium for that amount for which coverage was given, i.e., for the period for which the insurance policy was active before the cancellation. In all the situations, the minimum premium as specified in the tariff needs to be retained.

However, in any case, no premium refund would be given for such cancellation if any claim has been made on either of the policies during the period when both the motor fleet insurance policies were active but prior to cancellation of any of the motor fleet insurance policies.

Remember, the purpose of an insurance policy is to offer you financial security against various losses or damages, however, in any case, you won’t get more than what your actual loss is even if you have bought two motor fleet insurance policies.

Case: 1

R.J Mill has a wide array of cars which the company uses for providing transportation facilities to its employees. As the company has to buy motor fleet insurance also, it purchases the insurance from two different offices of the same motor fleet insurance company. As the vehicles run in both Delhi and Pune, the company buys motor fleet insurance policies from both the offices of the same insurance company.

However, it is necessary for R.J Mill to cancel its one motor fleet insurance policy. In this case, the first insurance policy was bought in May and the other one in July. R.J Mill should cancel the second policy by informing the same to the insurer in writing.

In this case, the insurer can refund 100% of the premium paid by R.S Mill.

Case: 2

L.S Jewellers has its offices spread across the country. Last year, the company purchased 50 new cars that it planned to use for both its personal and official work.

As it is essential to buy a motor fleet insurance policy, L.S Jewellers bought two motor fleet insurance policies of the same coverage from two different insurance companies.

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However, L.S Jewellers has to cancel one motor fleet insurance policy. The policy which the insurer buys later should be cancelled by the company and the premium would be refunded on a proportionate basis.

Case: 3

Recently, N.K Engineering has purchased ten more vehicles for the transportation of employees and goods. The company has decided to buy motor fleet insurance from two insurance companies. However, it should avoid doing so.

In case, it has already bought the policies from two different insurance companies; it is necessary to cancel that policy which it purchases later. The insurer will refund the premium on a proportionate basis.

In case N.K Engineering files a claim on either of the policies before the cancellation of the insurance policy, no refund will be made by the motor fleet insurance company.

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