Chapter 1 Flashcards
What is motor risk?
Motor risk includes the perils and hazards associated with the use of motor vehicles, such as accidents, fire, theft, and liability.
What are the five main categories of perils in motor risk?
- Death or injury to vehicle occupants.
- Death or injury to other road users.
- Damage to third-party property.
- Damage to the insured vehicle.
- Fire and theft.
What is a hazard in the context of motor risk?
A hazard is a factor that influences the likelihood or severity of a loss, such as a driver’s age or the condition of the vehicle.
What is negligence?
Negligence is the failure to exercise reasonable care, resulting in damage or injury to another person.
What is third-party liability?
It refers to the legal responsibility of a driver to compensate others for injury or property damage caused by their negligence.
Define “compulsory motor insurance.”
Insurance required by law to cover liabilities for third-party injury or property damage caused by motor vehicles.
What does “res ipsa loquitur” mean?
A legal doctrine meaning “the thing speaks for itself,” used when the cause of damage is obvious (e.g., a car veering off-road).
What is vicarious liability?
When one party (e.g., an employer) is held liable for the actions of another (e.g., an employee driving a vehicle during work).
What is contributory negligence?
When the claimant is partially at fault for their own injuries or damages, leading to reduced compensation.
What does the Limitation Act 1980 stipulate for motor claims?
must be commenced within six years of the date
when the cause of action accrued (three years for claims involving personal injury);
What are the two types of nuisance relevant to motor risk?
- Public nuisance: affects the public or a section of it.
- Private nuisance: affects an individual’s enjoyment of their property.
What is strict liability?
Liability imposed without proof of negligence, such as when damage occurs from inherently dangerous activities.
What is the Corporate Manslaughter and Corporate Homicide Act 2007?
It allows companies to be prosecuted for gross breaches of health and safety leading to death, including motor-related incidents.
How does the Automated and Electric Vehicles Act 2018 affect liability?
It provides legal protection to drivers of autonomous vehicles, treating them as innocent passengers when the vehicle is in autonomous mode.
What are examples of first-party damages in motor insurance?
Damage to the policyholder’s own vehicle, theft, and fire damage.
What is the primary cause of accidental fires in vehicles?
Faulty electrical components or fuel leaks coming into contact with hot surfaces.
What percentage of motor thefts involve unlocked vehicles?
Approximately 18%.
What is the significance of the Riot Compensation Act 2016?
It allows compensation for motor vehicles damaged in riots, but only if the policyholder does not have insurance cover for riot damage.
How does the Highways Act 1980 relate to motor risks?
It imposes a duty on highway authorities to maintain roads, reducing risks from defects like potholes.
What are some perils associated with weather conditions in motor risks?
Flooding, storm damage (e.g., falling trees), and high winds impacting vehicles.
What is the purpose of the Road Traffic Act 1988?
To mandate compulsory third-party motor insurance for all drivers, ensuring compensation for victims of road accidents caused by negligent drivers.
What type of insurance does the Road Traffic Act 1988 require?
Third-party liability insurance to cover injuries to others and damage to third-party property.
What is the minimum legal cover required under the Road Traffic Act?
Liability for death or injury to third parties and damage to third-party property, but not damage to the insured’s own vehicle.
What is the “road traffic accident” definition under the RTA?
An accident on a road or public place involving a motor vehicle that results in injury, death, or damage to property.
How does the Road Traffic Act address the liability of drivers?
Drivers are required to exercise reasonable care and are liable for damages caused by their negligence to third parties.
What exemptions exist for compulsory insurance under the RTA?
Vehicles owned by certain government bodies and vehicles used exclusively on private land are exempt.
What is the “driving other cars” (DOC) clause, and how is it affected by the RTA?
The DOC clause allows insured drivers to drive other vehicles, but coverage is limited to third-party liability as per the Act’s requirements.
What does Section 143 of the Road Traffic Act 1988 require?
It mandates that all drivers must have at least third-party insurance for their vehicles to cover liabilities for injury or damage caused to others.
What is addressed in Section 145 of the RTA 1988?
The minimum requirements for a motor insurance policy, which must cover liability for third-party death, bodily injury, and property damage.
What does Section 151 of the RTA 1988 state about insurers?
Insurers are obligated to meet third-party claims even if the policyholder breaches the terms of their policy, ensuring compensation to victims.
What is the significance of Section 152 of the RTA 1988?
It allows insurers to avoid liability if the insurance was obtained fraudulently or without proper disclosure, provided they notify the claimant.
What does Section 170 of the RTA 1988 require drivers to do?
Drivers involved in accidents must stop, exchange details, and report the incident to the police if injury or significant damage occurs.
What does Section 154 of the RTA 1988 cover?
It outlines the process for insurers to recover costs from uninsured drivers after compensating third parties.
How does Section 157 of the RTA 1988 address vehicle ownership and insurance?
It ensures that liability extends to anyone using or permitting the use of an insured vehicle with the owner’s consent.
What is the focus of Section 159 of the RTA 1988?
It specifies that certificates of insurance must be produced on demand to law enforcement or within seven days at a police station.
What is outlined in Section 35 of the RTA 1988?
The regulation of driving licenses, including requirements and conditions for obtaining and holding a valid license.
What does Section 165A of the RTA 1988 allow authorities to do?
It gives police the power to seize uninsured vehicles or vehicles being driven by unlicensed drivers.
