Chapter 1 Flashcards
Particular Risks
- Localised in cause and effect
- Produces losses ranged from minor to major outlays
- Examples: Damage from accidents or localised natural events
Fundamental Risks
- A risk that is uninsurable due to the insurance markets inability to cater for it
- Example: War
Catastrophic Risk
- Flood and Storm Damage is covered
- Damage by nuclear explosion or contamination is not
Five Main Categories of Perils in Motor Risks
- Death or Bodily Injury to vehicle occupants
- Death or Bodily Injury to other road users
- Damage to other’s property
- Vehicle Damage by accident, storm, flood or vandalism
- Damage by fire or theft
Legal Definition of Negligence
The failure to do something a reasonable person would do, or something a prudent person would not, leading to damage or injury
(Blyth v. Birmingham Waterworks Company, 1856)
Res Ispa Loquitur
“The thing speaks for itself”
Where the onus of proof shifts to the defendant
Vicarious Liability
Liability of one party (e.g an employer) for the actions of another (e.g an employee) in the course of employment
Limitation for PI Claims under the Limitation Act 1980
Three years from the date of damage or when the claimant becomes aware of it
Latent Damage Act 1986
Extends the limitation period for property damage by three years from the time of discovery, with a maximum of 15 years
Three Forms of Trespass
- Trespass to the person
- Trespass to goods
- Trespass to land
Two Types of Nuisance
- Public Nuisance
- Private Nuisance
Parish v. Judd 1960
A temporarily unlit parked vehicle near a street lamp did not constitute nuisance as there was no fault
Automated and Electric Vehicles Act 2018
Injured drivers of autonomous vehicles are treated like innocent passengers and can claim compensation from their motor insurers
What % of theft claims are theft of the vehicle itself?
Approximately 70%
Riot Compensation Act 2016
- Limited cover for damage caused by riot, only if insurance doesn’t cover it
- Maximum compensation is £1million per claim
Frequency in Motor Insurance
The ratio of claims or accidents to the exposure
Vehicle Years
One vehicle insured for 12 months equals one vehicle year, two vehicles insured for 6 months each also equals one vehicle year
The Road Traffic Act 1930
Introduced compulsory motor insurance in the UK
Two Main types of UK Law
Civil Law (tort and contract) and Criminal Law
Penalties under Criminal Law for Negligent Driving
- Fines
- Driving License Endorsement
- Disqualification
- Imprisonment
Road Traffic Act Parts
Part I - Principle Road Safety Provisions
Part II - Construction and Use of Vehicles and Equipment
Part III - Licensing of Drivers of Vehicles
Part IV - Licensing of Drivers of Heavy Goods Vehicles
Part V - Driving Instruction
Part VI - Third-Party Liabilities
Part VII - Miscellaneous and General
Section 143 of the RTA
It makes it an offence to use, cause or permit the use of a motor vehicle on a road without an insurance policy complaint with Part VI of the Act
Exempt Vehicles from Compulsory Insurance under Section 144
Vehicles owned by government bodies, the NHS and military vehicles
Legal Definition of “Motor Vehicle” under Section 185
A mechanically propelled vehicle intended or adapted for use on roads
Definition of “road” under Section 192(1) of the RTA 1988
A highway or any other road to which the public has access, including bridges
Liability Coverage under Section 145
The policy must cover liabilities for
- Death or Bodily Injury to any person
- Property Damage caused by or arising out of the use of a vehicle on a road or public place
Deregulation Act 2015
- Policies can be effective even if the certificate is not delivered immediately
- No legal obligation to return certificates upon policy cancellation
- Insurers no longer need to recover certificates to avoid liability after cancellation
What is the purpose of Section 148 of the RTA?
To ensure innocent victims of motor accidents are compensated
When is car-sharing considered private use under Section 150?
- the vehicle carries up to 8 passengers
- fares do not exceed running costs
- payment arrangements are made before the journey
Road Traffic (NHS Charges) Act 1999
NHS hospitals recover costs via the Compensation Recovery Unit (CRU)
What is the purpose of the EU Motor Insurance Directives
- harmonise laws of EU member states
- facilitate freedom of travel
- ensure appropriate levels of cover
- streamline claims procedures across states
First Motor Direction 1972
- each member state was required to have compulsory insurance covering third-party injury liability
- abolished insurance checks at EU frontiers
- initially required green cards for UK drivers but later discontinued
Second Motor Directive (1984)
- compulsory third-party property damage, with a UK minimum cover of £250,000
- required all member states to set up guarantee funds for injury and property damage claims caused by uninsured or unidentified drivers
Third Motor Directive (1990)
- minimum cover in other member states had to match the higher of the cover required in the home or host state
- liability for passenger injuries was covered under motor policies
Fourth Motor Directive (2000)
- ensuring accident victims could identify the responsible vehicle’s inter within two months
- the UK has adapted through the use of MID
Fifth Motor Directive (2005)
Increased TPPD liability limits to £1 million and later to £1.2 million
