Chapter 5 Flashcards
What does the RTA 1988 say about motor insurance?
Illegal to drive / in charge of a vehicle on a public road without insurance for TTPD and TPI
Road = where public has access
What are the four levels of cover for motor insurance?
- RTA
- TPO
- TPFT
- Comprehensive
What is RTA cover?
Unlimited bodily injury/death TP and £1.2m TTPD
Third EU directive - minimum cover country vehicle used or registered whichever higher
What is TPO cover?
£20m TTPD limit, indemnity to insured’s employer if business use, passenger liability
What is TPFT cover?
Cost of repair/replacement if vehicle stolen, damaged during theft or attempted or damage from fire, lightening or explosion
What is comprehensive cover?
Includes other accidental and malicious damage
Excludes wear and tear, depreciation, mechanical and electrical failure and tyre damage
What are the optional extensions for motor insurance?
For an AP
Breakage of glass (non comp), personal effects, courtesy car, breakdown, legal expenses, EU cover, trailers
What is motorcycle cover?
Same as private car but:
- No cover theft parts/accessories unless motorcycle also stolen
- No indemnity for employers
- No personal accident, medical expenses or personal effects
What is health insurance?
- Personal accident - payment in event of accidental death or bodily injury
- Sickness cover - payment for disablement due to sickness
- Medical expenses - cover for treatment outside of NHS
Outline personal accident and sickness cover
Benefit policy - pay sum of money when defined event occurs whether or not financial loss
Has an operative time of over eg during occupation
Private or group
Purchased as stand alone or add on
Cover limited to ages 16-65
What are the personal accident benefits?
Lump sum payable in event of:
- Death
- Loss of limbs, eyes, sight or hearing (permanent and total and within agreed period)
- PTD
- PPD
- TTD
- TPD
What is PTD in personal accident and sickness?
Permanent total disability
Condition where recovery not anticipated eg paralysis
What is TTD in personal accident and sickness?
Temporary total disablement
Serious injury unlikely result on PTD, weekly benefit paid up to limit
What is PPD in personal accident and sickness?
Permanent partial disability
Permanent injuries that prevent insure from returning to relatively normal life eg loss of figure - use pre-set scale to determine payment eg 20% of death payment
What is TPD in personal accident and sickness?
Temporary partial disability
Injury that results in insured unable to performant substantial part of their job
What are the standard exclusions for sickness cover?
- Influence of alcohol
- Self inflicted injury, disease or suicide
- Childbirth, pregnancy, venereal disease, HIV
- Pre-existing illness
- Accidents while motorcycling, racing, winter sports or mountaineering
What does medical expenses provide?
In patient covering including hospital charges, specialist fees and additional costs
Exclusions - long term residential care and pre-existing conditions
What is household insurance?
Combines house and contents and damage from fire/other perils
What is buildings insurance?
Main structure, garage, shed, greenhouse or anything normally leave when moving
What perils are covered under buildings insurance?
- Fire, lightning, explosion and earthquake
- Riot, civil commotion, malicious damage and vandalism
- Storm or flood
- Falling trees
- Escape of water and oil
- Theft or attempted
- Impact from aircraft, vehicles or animals
- Subsidence, ground heave or landslip
- Damage to drains, pipes, cables
- Breakage of glass and sanitary fixtures
What is contents insurance?
Household goods and personal effects of insured or family members living in the property
Includes cash / stamps £50-100
Limits on single articles of value eg 5% total sum insured
What are the differences between buildings and contents insurance?
Contents:
- Theft / attempted may be excluded in no forcible and violent entry or exit
- Accidental damage for certain contents are excluded eh clothing, plants
What extensions can be included in contents insurance for an AP?
- AD to entertainment equipment in course of removal
- Replacement locks after keys stolen
What extensions are automatically included in contents insurance?
- Temporary removal (in British Isles)
- Clothing and personal goods of employees
- Accidental breakage of mirrors, glass and furniture
- Loss of rent
What are extensions for household insurance?
- Personal possessions regularly taken outside property
- Money and credit cards
- Bikes
- Freezer contents
- Caravans
- Small crafts
- Sports equipment
- Domestic animals
What is FloodRe?
Reinsurance company owned and managed by insurers, funded by levies on members
Only covers eligible properties - no businesses or properties built after Jan 2009
What is travel insurance?
Cover personal accidents benefits, medical expenses, loss of deposit, baggage, personal liability, travel interruption and delay and hospital cash benefits
Exclusions include pregnancy, suicide, disability, confiscated luggage and fragile objects
What is extended warranties insurance?
Extends period of time for free repairs for mechanical and electrical goods
excludes negligent handling, not following instructions and covered under household
