Chapter 5 Flashcards
What cover is provided in Road Traffic Act only?
- Unlimited indemnity in respect of bodily injury or death to third parties
- £1.2m limit for loss of or damage to third-party property, claimants costs and expenses and emergency medical treatment and hospital charges arising out of the vehicle use
What cover is provided in Third Party only?
- £20m limit in respect of third party property damage cover
- Indemnity to the insured’s employer if the policy covers business use
Indemnity for the liability of passengers - Legal costs to defend a claim
What cover is provided in Third party, fire and theft?
The cost of repair or compensation of the insured if the vehicle is stolen, damaged during theft or attempted theft, and damage by fire, lightening or explosion
What cover is provided in Comprehensive?
The cover is all risks with exclusions including wear and tear, depreciation, loss of use, mechanical and electrical failure and tyre damage from punctures or blow-outs
What extensions can you get with Comprehensive cover?
Personal accident, medical expenses, personal effects and usually a drive other vehicles extension by the insured only which is restricted to third party only cover or Road Traffic Act only cover
What optional extensions on motor insurance can you get?
Breakage of glass
Personal belongings and clothing
Provision of a courtesy car
Extended personal accident benefits
Foreign use cover
Caravans and trailers
Breakdown cover
Legal expenses
What are the differences in cover between private car insurance and motor cycle?
There is no cover for theft of accessories or spare parts (unless the cycle is also stolen), some policies do not provide indemnity to employers and there is usually no personal accident, medical expenses or personal effects cover
What is the purpose of fleet insurance?
To enable rating to be carried out to take account of the individual experience of the particular policyholder and to reduce administration for the policyholder and insurer
What are personal accident benefits?
A lump sum payable (capital benefit) in the event of death, loss of limbs/eyesight/speech/hearing, permanent total disablement, permanent partial disablement, temporary total disablement, temporary partial disablement
What is sickness cover?
An extension to the personal accident policy and provides weekly benefits for persons unable to perform any part of their normal job
What cover is generally available in buildings insurance?
Fire, lightening, explosion and earthquake
Riot, civil commotion, strikes, labour or political disturbances, malicious damage or vandalism
Storm or flood
Falling trees or branches
Escape of water
Escape of oil
Theft or attempted theft
Impact
Subsidence, ground heave or landslip
Breakage or collapse of television or radio receiving aerials, aerial fittings and masts
Accidental damage to drains, pipes, cables or underground pipes
Accidental breakage of glass and sanitary fixtures
Legal fees, architects and surveyors fees, costs of debris removal
Loss of rent
Accidental damage
What is contents insurance?
For household goods and personal effects belonging to the insured or a family member living in the property. Includes cash and stamps up to £50-£100 and any fixtures and fittings belonging to the insured
What are the three differences between contents insurance and buildings cover?
- theft or attempted theft of cash, currency, bank notes and stamps may be excluded if it does not involve forcible and violent entry or exit
- Theft or attempted theft while the building is lent, let or sublet may be excluded if it does not involve forcible and violent entry and exit
- Accidental damage cover: certain contents are excluded
