Chapter 2

Question 1

Typers of insurance cover from lowest to highest

Answer 1

1 Road Traffic Act Only
2 Third Party Only
3 Third Party Fire and Theft
4 Comprehansive

Question 2

Road Traffic act cover

Answer 2

• unlimited indemnity in respect of bodily injury or death to third parties
• £1,200,000 limit to loss or damage to third party property

Question 3

Third party only cover

Answer 3

• increased third party property damage to cover £20million
• passenger indemnity
• legal costs to defend a claim

Question 4

Third party fire and theft

Answer 4

• cost of repair or compensation to the insured if vehicle is stolen or damaged during or attempted theft
• damage by fire, lightening or explosion

Question 5

Comprehensive

Answer 5

Includes accidental or malicious damage, cover for all risks apart from following exclusions:

-wear and tear
- Electrical and mechanical
- loss of use
- tyre damage

Question 6

What are some extensions to a motor policy?

Answer 6

• breakage of glass
• personal belongings
• young additional drivers

Question 7

Exclusions to motor insurance

Answer 7

• war risks
• riot and civil commotion
• terrorism
• sonic bangs

Question 8

Does motorcycle insurance have same levels of cover for private motor insurance?

Answer 8

Yes