The All India Motor Tariff governs motor business in India. According to the Tariff, two types of Policy Forms are used by all classes of vehicles. They are Form A and Form B. 

Form A, or what is commonly known as Act Policy, covers Act Liability which is a compulsory requirement of the Motor Vehicles Act. No vehicle can be used without this minimum insurance cover. Use without such insurance is a penal offence. The following liabilities can be covered in this policy 

• Unlimited liability towards Third Party bodily injury
  
  

• Liability towards Third Party Property Damage to the extent of Rs.6000/- only
  
  

• Unlimited liability towards bodily injury of passengers of the vehicle 
  
  

• Liability towards employees of the owner of the vehicle while traveling in or using it, against bodily injury, to the extent required under the Workmen's Compensation Act

Form B, or what is commonly known as Comprehensive Policy, is an optional cover which takes care of the following additional losses and liabilities 

• Loss or damage to the vehicle and its accessories and extra fittings, protection and removal costs, and towing disabled vehicles (only for commercial vehicles)
  
  

• Liability towards Third Party Property Damage, in excess of Rs.6000/-
  
  

• Liability towards employees under Common Law and Fatal Accidents Act, over and above the liability under Workmen's Compensation Act 
  
  

• Personal Accident Benefits for the owner, passengers and employees

The above losses or liabilities can be separately covered in conjunction with the liabilities covered under the Act Policy, by taking a Comprehensive Policy, paying additional premium. 

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