Chapter 5 Flashcards
What is the minimum motor insurance cover required to comply with the Road Traffic Act 1988, and what is the scope of this cover?
The minimum cover required is Road Traffic Act only. This covers unlimited indemnity in respect of bodily injury or death to third parties, loss of or damage to third party property (with a limit of £1,200,000), claimants’ costs and expenses, and emergency medical treatment and hospital charges arising out of the vehicle use.
What exclusions apply to a comprehensive motor policy?
Although other exclusions may apply, the most common will be:
• wear and tear;
• tyre damage from blow-outs or punctures;
• mechanical and electrical failure;
• depreciation;
• loss of use.
Under a motor cycle policy, when will there be cover for the theft of accessories or spare parts?
A motor cycle policy only covers the theft of accessories or spare parts if the motor cycle itself is also stolen.
What is meant by saying that a personal accident and sickness policy is a benefit policy?
A benefit policy means that the policy is a contract to pay a certain sum of money in the event of a defined event occurring. There does not need to be a direct financial loss.
What basic cover is provided by private medical insurance?
Private medical insurance provides cover for individuals seeking medical treatment outside the National Health Service, giving an individual the choice of specialists, consultants, hospitals and also the timing of the treatment.
How are ‘buildings’ defined in a typical household policy?
‘Buildings’ are the main structure of the private dwelling and includes garages, sheds, greenhouses and other outbuildings. It also includes swimming pools and tennis courts. Anything you would normally leave behind when you move would be considered part of the building.
What are the basic sections of cover provided by travel insurance?
The basic sections of a travel insurance policy are as follows: • personal accident benefits; • medical and associated benefits; • travel delay; • travel interruption; • baggage, personal effects and money; • delayed baggage; • hospital cash benefits; • loss of deposits; • personal liability; • cancellation.
What optional extensions are usually available under a travel policy?
The following optional extensions are usually available in addition to the 'standard' cover: • the failure of the tour organiser; • lack of services or amenities; • loss of passport; • legal expenses.
What standard policy cover is offered by an extended warranty insurance?
Extended warranty cover is in respect of repairs following electrical and mechanical defects, for a period of up to five years from purchase. Policies are available to cover all electrical products in an insured’s house, and a typical limit is around £2,500.
