Motor sport Insurance – a comprehensive solution


Motorsport Insurance is an industry that is unique as it is a top rated speciality. Motorsport insurance is a safe hold special risk. It offers primary and excessive medical coverage for drivers, crew members and other participants. It is a well oiled program in which considerable thought is given to liability coverage for risks and exposure related activities including spectators, automobiles, sponsors and owners.

Rules in Motorsport Insurance 

There are some major rules in motor sport insurance that needs to be looked into and studied in detail

  • Each driver and his assistant must be present at the registration desk on the day of the race.
  • Driver must be present at the drivers meeting. This is mandatory or else he will be disqualified.
  • No alcohol or drugs are allowed at the pit, holding or performing area and neither will the driver and his assistant will be allowed to consume the same before the race. If found in an inebriated condition the driver will be disqualified.
  • Only a driver of over sixteen years of age will be allowed to participate.
  • No substitute driver will be allowed.
  • The car in use should a wheel base of 106 degree or larger with a six to eight cylinder.

Regulation in Motorsport Insurance 

Motor sport Ireland or MI is a recognized insurance organizer in motor sport. If any participant or official is not permitted by MI then the adequacy of the insurance will be needed to be checked. All insurance policies run for a twelve month period from January to December.

Wide Ranging Cover of Insurance

  • There is a legal liability cover in which one is held responsible for causing an injury to a third party or damage to third party property.
  • There is a master legal liability cover that has a limit of twenty five million for every loss.
  • There is a personal insurance that provides benefits for specific injuries while taking part in such events.

Legal liability insurance is designed specifically to meet the needs of motor sports drivers in general. The amount of 25 million that has been decided upon is to give the driver peace of mind in the event in which he is participating and that he will not be responsible in a catastrophic injury if it occurs.

In personal accident insurances the benefits are as follows-

  • Loss of eyesight in both or in one the amount paid will be 1.25 million.
  • In temporary disability subject to a hospital stay for twenty eight days the amount given will be five hundred dollars per week. If the driver is employed then he is entitled to that amount for a period of a hundred and five weeks.
  • However if the driver is not employed then he is entitled to a wage of two hundred and fifty dollars payable up to twenty six weeks.
  • In case of an Insured driver who is less than eighteen years of age and in full time education an amount of twenty thousand dollars will be disbursed.


Car hire – Rent as per convenience


Hiring of cars in the twenty first century is the latest fad. Cars are hired by companies on a short term basis from a few hours to a few weeks. The car hire sector is well organized with many local branches which allows or enables the customer to choose accordingly. Car hire serves the customer in two ways. Firstly it gives the customer a vehicle as he does not own one himself and secondly they serve the self moving industry by offering different vehicles for different purposes.

History of car hire

The first Nurburgring car hire services began in the early nineties by a German company. America also started the car hire system in 1916 while United Kingdom started in 1920. The car hire sector expanded so rapidly that there were one thousand two hundred delegates for a convention organized by America Drive yourself association. After World war two several International companies joined the band wagon.

Business models

Car rental start their business by buying a fleet of cars and then giving them out on rent. These rental cars can be either self owned or they can be leased out. There is also a guaranteed buy back scheme where one can buy the vehicle directly from the manufacturer who outlines the price lower than the market or show room price.

Types of vehicles

Car hire companies usually offer a range of vehicles depending on the customer’s budget and space requirement. At major air ports where there is a continuous flow of passenger’s rental usage some specialized companies offer high end vehicles for rent. Cars come in different sizes and people have their own choice of selecting a non ac against an ac car.

Rental conditions

Cars on hire have a stipulated set of rules that need to be followed on taking a car on hire. Though the rules may vary from company to company however the standard rule is that the vehicle must be returned in the same condition as it was taken. This rule is mandatory. Also the vehicle must not exceed the mileage restriction, failing which the customer will be charged extra. Insurance companies also have their own stipulated guide lines where in the minimum legal age of the driver to be eighteen and above. A majority of the car rentals agencies allow for the use of credit card facility. If any defect is found on the car after its return the same is added to the card.


Car rental companies always ensure that third party insurance is done in case of accidents. These companies maintain liability insurance on their vehicles. It is mandatory when renting a car to offer different types of supplement insurance at an extra or additional cost. Personal accident Insurance covers medical cost and accidental deaths for the renter and the passenger. Personal effects coverage insurance includes risk of loss or damage to personal belongings of the renter and the renter’s rental companies in Europe, South America and Australia offer excess insurance as this covers up as an opt in secondary insurance.