Chapter 1- Motor Ins Flashcards
List main forms of motor insu, describe basic features of each type of motor ins, outline standard policy cover of various forms of motor ins State optional extensions and limitations of various motor ins policies
What is the most common compulsory insurance in the uk?
Private motor insurance - it is illegal to drive, or be in charge of a vehicle on a public road without an insurance policy to cover legal libaility for injuries to others and damage to their property.
Standard policy cover - how many levels are there and what are they?
4
- Road Traffic Act only
- Third Party only
- Third party, fire and theft
- Comprehensive
What is the minum cover required to comply with the Road Traffic Act 1988 and what cover does it provide?
Road Traffic Act only, the cover provides:
- Unlimited indemnity for bodily injury or death caused to 3rd parties including passengers
- £1,200,000 indemnity limit for loss or damage to property belonging to third parties
- indemnity for claimant costs and the expenses of handling the claim
- Cover for charges for any emergency medical treatment and hospital charges arising out of the use of the vehicle.
In addotion to comply with the THIRD EU MOTOR INSURANCE DIRECTIVE all policies must also provide:
- min cover required by EU or min cover of the country where the vehicle is usually kept (RTA Cover only in the UK) whichever provides greater cover.
- cover for liability to people in the employment of the insured when travelling as passengers in the course of employment, but not the driver. Employer liability would cover liability employer has to driver.
Summarise the three main levels of cover for motor insurance using the following three headings:
Third party only
Third party, fire and theft
Comprehensive
THIRD PARTY ONLY
- Death of or bodily injury to any person; and damage to third party property
THIRD PARTY FIRE AND THEFT
Third party cover
+
Loss of or damage to the vehicle by fire or theft.
COMPREHENSIVE
Third party, fire and theft cover
+
Other accidental loss of or damage to the vehicle and accident benefits for the insured and spouse.
What cover is provided under 3rd party only?
RTA only
+
- cover for vehicles not on the road or public place
- £20 million indemnity limit for 3rd party property damage.
- indemnity for accidents which occur when insured is driving car that doesn’t belong to them.
- indemnity to anyone driving or using vehicle on the insured’s instrction/permission
- legal cost of defendinf a claim
-ltd cover for legal representation following a prosecution for a motoring offence
What cover is provided under 3rd Party fire and theft?
Third party
+
Costs of repairs or compensation if vehicle:
- damaged by fire, lightning or explosion
- damaged either during attempted theft or while it is stolen
- stolen and not recovered
What cover is provider under Comprehensive policy?
3rd party fire and theft
+
Accidental and malicioua damage to the insured’s car.normally includes:
√ personal accident cover
√ medical expenses (250 - 500 gbp)
√ personal belongings and clothing (250 - 1k)
Excludes:
- Loss or damage to spare parts unless on the vehicle or in the insured’s garage.
- Wear and tear
- mechanical and electronic failure or breakdown
@
Provide an example of some optional extensions
Breakage of glass Personal belonging and clothing Young additional drivers (under 25) Loss of use Personal accident benefits Foreign use - insurers issue green cards for these Elections Racing, competitions, rallies and trials Caravans and trailers Breakdown cover Joint policies
Provide an example of some optional extensions
Breakage of glass Personal belonging and clothing Young additional drivers (under 25) Loss of use Personal accident benefits Foreign use - insurers issue green cards for these Elections Racing, competitions, rallies and trials Caravans and trailers Breakdown cover Joint policies
What are the three main classes of motor insurance?
Private car
Motor cycles and
Motor insurance
What is the minimum motor insurance requirement in order to comply with the RTA 1988?
Min reqt by law is to provide ins in respect of legal liability for
3rd party death or bodily injury (unlimited)
3rd party property damage (£1.2 million)
Payment of emergency treatment fees.
What are the two specific exclusions in respect of third party liability?
Damage to property owned, held in trust by or in the custody or control of any person claiming indemnity under the cover
Liability covered by any other insurance policy.
What is the main difference between third party, fire and theft cover and comprehensive cover?
Comp includes cover for accidental and even malicious damage to the insured’s vehicle.
What are five of the optional extensions to a comprehensive private motor policy?
- Increased cover for personal belongings & clothing
- Young additional drivers
- Loss of use
- Additional personal accident benefits
- Elections
- Racing, competitions, rallies and trials
- Caravans and trailers
- Breakdown cover; and
- Joint policies
What are the main differences between the standard comprehensive motor policy and the standard comprehensive motor cycle policy?
The main differences are:
- accidental damage for motor cycles excludes theft of accessories/ spare parts unless the bike is stolen at the same time.
- There are no personal accident benefits, medical expenses or personal effects cover under the standard motor cycle policy
- Liability section for motor cycles generally indemnifies insured or personal representative if the insured dies
