Chapter 2 Flashcards
What are the four types of cover offered by motor insurers?
- Road Traffic Act
- Third Party Only
- Third Party, Fire & Theft
- Comprehensive
When would Road Traffic Act cover be offered?
When the policyholder has a poor claims/convictions record
What is the restriction when claiming for parts and accessories on a motorcycle policy in relation to a theft claim?
They must be attached to the motorcycle and the motorcycle must be stolen at the same time
What is the definition of ‘theft’?
‘The intention of permanently depriving’
If a vehicle is stolen and subsequently recovered but damaged, will the damage be covered under a TPF&T policy?
Yes, because theft is the proximate clause
‘It forms the basis of the contract’. What is being described here?
The proposal form/statement of fact
How will an insurer normally choose to indemnify a policyholder for damage to their motor vehicle?
Repair the vehicle. This is usually the most cost-effective way for the insurer
What is meant by the term ‘green parts’ in regards to a motor vehicle repair?
Recycled or reconditioned secondhand parts
What is the meaning of the term ‘write-off’?
Where the cost of repairs exceeds the pre-accident value of a vehicle, or a predetermined percentage of the value
When would a young or inexperienced driver excess apply?
When the last person in charge of the vehicle was between the ages of 17-21 or 21-25
If an insurer wants to utilise the ‘new car replacement’ section of a policy, but a vehicle is not available, how will they indemnify the policyholder?
They will revert to paying the policyholder the market value of the vehicle before the accident
What is meant by the term ‘personal effects’?
Anything in the vehicle which are not accessories or spare parts and which are personal to someone
What are some common exclusions of ‘personal effects’?
- Money/Tickets
- Household goods
- Tools of the trade
- Mobile phones/Sat navs
In which types of commercial vehicle insurance, when would personal effects cover be included?
In small fleet or commercial van policies but not in goods-carrying policies
What cover will apply for a specified trailer on a commercial vehicle policy?
The same cover as the towing vehicle, whether attached or detached
Over what weight must a trailer be registered with the DVLA, display a registration plate and have a Trailer Registration Certificate before travelling to a country that has ratified the Vienna Convention?
750kg
How many seats does a vehicle need before it is classed as a bus or coach?
8 including the driver
What is a contingent liability policy?
A policy taken out by an employer to protect themselves against the vicarious liability of an employee using their vehicle for business use.
It is meant for scenarios where the employee’s insurance is inoperative in some way (eg. they haven’t renewed it)
Who would take out an Occasional Business Use policy?
An employer where an employee will occasionally need to use their personal vehicle for business use, but their policy does not allow it.
The policy is inoperative if their is another policy in force covering the same loss.
If two policies are in force covering the same loss, who will be responsible for dealing with the claim?
Either insurer will deal with the claim and seek a 50% contribution from the insurer
When will the insurer cover damage, death or injury caused by the loading/unloading of good on a commercial vehicle policy?
When the incident occurs on a roadway/thoroughfare
What is a normal approach for a commercial vehicle insurer in relation to ‘wrongful delivery’?
The insurer will not be liable for death/injury or property damage where it is the result of a delivery that was not authorised, not ordered, negligently carried out, unlawful or otherwise wrongful
What is a commercial vehicle insurers approach to pullution/contamination?
Insurers will exclude liability for loss, damage, death or bodily injury to any person or damage to property caused directly or indirectly by pollution or contamination, unless it arises by sudden, identifiable and unexpected incident
Can an insurer recover any payments made under the ‘personal accident’ benefit of a motor insurance policy?
No. Because this is a ‘benefit’ there is no subrogated right of recovery
What is the purpose of a ‘motor legal expenses’ policy?
It relieves intermediaries and agents the need to provide assistance with clients’ uninsured loss recovery claims
When will the cost of recovering a vehicle and any passengers to a location of their choice in the UK be covered under a breakdown policy?
When the policyholder has purchased the ‘nationwide recovery’ benefit
