Chapter 5: Insurance Products: Personal Insurances Flashcards
Define ‘motor insurance’
Compulsory insurance in the UK
What are the four levels of motor insurance?
Road Traffic Act only, third party only, third party fire snf theft, and comprehensive.
What does RTA only cover cover?
Unlimited indemnity for third parties, £1.2m limit for damage to third party property, and emergency medical treatment
Define ‘third party only cover’
RTA only + £20m limit for third party property, indemnity to the isnured’s employer if it is a business car, indemnity for passenger liability, and legal costs
Define ‘third party, fire, and theft cover’
Third party only + compensation if the vehicle is stolen, if it is damaged during an attempted robbery, damage by fire, lightning, or explosion
Define ‘comprehensive cover’
Broadest car cover- inclued persoanl accident, medical expenses, personal effects, and drive other vehicles extension
Define ‘optional extensions’
Extensions that can be added on for an additional cost
Define ‘exclusions’
Stuff excluded from the policies
What are common exclusions from comprehensive motor cover?
wear and tear, mechanical and electrical failure, depreciation, loss of use, tyre damage
How does private motorcycle insurance differ from car insurance?
No cover for theft of accessories unless cycle is also stolen, usually no personal accident or medical expenses cover.
Define ‘commercial vehicles’
Can include goods carrying vehicles, agricultural and forestry vehicles, passenger carrying vehicles, special construction or special types vehicles
What is fleet insurance?
A group of vehicles under single ownership, covered by one insurance- usually ten
Define ‘health insurance’
Can be personal accident insurance, sickness cover, or medical expenses
Define ‘personal accident benefits’
Benefit policy for personal accident, which commonly pays out for death, loss of limbs, eyesight, or hearing, permanent injuries or disablement, temporary disablement
Define ‘sickness cover’
Cover for disappearance, medical treatment, or hospital benefits
Define ‘medical expenses’
Hospital charges, specialists fees, additional costs like ambulances
Define ‘household insurance’
Can cover building and contents insurance.
Define ‘contents insurance’
Insurance for the contents of the building (anything you would take with you when you moved)
Define ‘all risks cover’
Common extension to building cover, which covers personal possesions regularly taken outside of the property. This can include specified items of high value and unspecified items
What are common extensions to household insurance?
Money and credit cards, bicycles, freezer contents, caravans, small crafts, sports equipment, personal accident, domestic animals, or legal expenses.
Define ‘travel insurance’
Insurance for travelling, which covers personal accident, medical expenses, loss of deposits, baggage or money, delayed baggage, travel interruption, or travel delay
What are common extensions to travel insurance?
Failure of tour organiser, lack of amenities, loss of passport, legal expenses
Define ‘extended warranties’
For buyers of mechanical and electrical goods, this extends teh warranty
When can a small craft be added to a household insurance policy?
If it is not exceeding 23 feet overall and if it does not go faster than 17 knots
