General Insurance - Types Flashcards
What do contracts of indemnity mean?
You are entitled to recover the actual commercial value of what you have lost through the occurrence of the insured event
Why is it important for the wording used in the insurance contract to be precise?
It could lead to :
- The insurer becoming liable for payments they didn’t anticipate
- The insurer being involved in litigation or legal battles
- Even if they win the dispute, failure to meet claims leads to bad publicity
What are the five main types of general insurance?
- Liability Insurance
- Property Insurance
- Motor insurance
- Marine & Aviation Insurance
- Personal accident & Health Insurance
What is Liability insurance?
This insures you against the risk that you become legally liable to pay compensation to a third party
What are the usual excluded claims under Liability insurance?
- Aviation other than as a passenger
- Suicide or self inflicted injury
- Existing disability
- Dangerous sporting activity
- Civil unrest
- Pregnancy
What is the length of tail?
It’s the amount of time that it takes for a claim to be reported and settled
What are the main types of liability insurance?
- Employers Liability
- Product Liability
- Public Liability
- Professional indemnity
- Other liability covers
What is property insurance?
This covers you against the loss of or damage to your property and is not limited to just fixed property
What is consequential loss cover?
This protects the earnings capacity of the business following a loss of property
What can property insurance be split into?
- Buildings
- Contents
What are the usual exclusions in property insurance?
- Earthquakes
- Nuclear risk
- War, civil unrest
What is reinstatement?
This involves replacement as new, it includes the costs of clearing the site and re electing a new one
What is pure indemnity?
This is used for commercial contents and is the depreciated value of the contents covered.
What is an average clause?
If at the time you have a partial loss and the sum insured is less than the full value then the insurance benefit is reduced to the same proportion the sum insured bears to the full value
What is personal accident and healthcare insurance?
- Personal Accident : Provide payments of a specified amount in the event that you or your dependents suffer the loss of a limb or any other specified ailment
- Healthcare : Insurance to meet medical costs or part of them as part of indemnity insurance
What are the possible limits on the healthcare insurance benefits?
- Limiting the price range of hospitals
- Limiting the benefits in respect to each aspect of the hospital
- Limiting the aggregate amount you can claim
What are the usual exclusions on personal accident cover?
- Self inflicted Injury
- Cosmetic surgery
- Suicide
- Alcohol or drug abuse
- Unlawful activities
- Dangerous sports
What is motor insurance?
This covers the loss of your vehicle, damage to it, and any harm caused to third parties by your use of it
What is the comprehensive policy?
This provides cover against third parties causing damage to your vehicles, personal accident cover for you, legal expenses arising from an accident and loss of personal effects carried in your vehicle.
What is the indemnity type?
The vehicle will be insured for it’s replacement value by another vehicle of the same make, model and age.
What is the motor insurance divided into?
- Private cars
- Commercial vehicles
- Motor cycles
- Motor fleet
What are the three types of cover in Marine and Aviation insurance?
- The hull
- The cargo
- The freight
What are the usual exclusions for marine inusurance?
- Unworthiness of vessels
- Unfitness of containers
- War
- Strike
- Malicious acts
- Acts involving nuclear motors
- Illegal use
- Use outside stated geographical limits
- Piloted by someone unspecified
What is a comprehensive aviation policy?
This will provide cover to the pilot and the airline for liability from:
- Aircraft damage
- Legal liability to injured persons on ground or damage to the ground
- Legal liability to passengers
What are the usual exclusions in aviation policies?
- Not conforming to manufacturer specifications while landing or taking off
- If the number of passengers exceeds the maximum stated
