Motor Insurance Flashcards
What are the four levels of cover available for private motor insurance?
Road traffic only, third-party only, third-party fire and theft and comprehensive.
The lowest road traffic only offers?
The minimum cover required by the Road traffic act 1988 as amended by subsequent legislation.
What is comprehensive insurance?
Comprehensive insurance offers the widest level of cover as in addition to the cover offered under the third-party, fire and theft policy cover for liabilities to 3rd parties and damage/loss of the insured vehicle as a result of fire and theft. It also covers accidental and malicious damage to the insurance car
What are the optional extensions to basic cover?
Personal belongings and clothing cover, loss of use
There are a number of general and market exclusions that apply to all sections of the policy examples
Driving without a license. Use of the insured vehicle outside that permitted by the policy. Contractual liability. War risks. Radioactive contamination and explosive nuclear assembly. Riot and civil commotion in Northern Ireland for own damage. Sonic bangs pressure waves or other aerial device. Pollution and contamination unless arising from a single identifiable event.
What does the term motorcycle include?
Any kind of cycle propelled mechanically, including mopeds.
How is a motorcycle insured
Insurance is under a specified motorcycle policy and the driver is insured for a particular motorcycle.
In motorcycle insurance the standard comprehensive policy cover It’s similar to that under a private motor policy but what are the differences?
There are differences relating to accidental damage personal accident benefits and liability.
There are optional extensions to a motorcycle policy Such as
Trailers, riding Other motorcycles, more than one cycle insured, invalid carriages
Why might riding other motorcycles be excluded?
Because the vehicle is of a modest specification however it may be added back at an additional premium but this is being phased out
What are commercial motor insurance primarily concerned with?
The risks that attach to the vehicle themselves while they are being driven, left parked or carried by Sea or air and not with the goods being carried.
What is the specific exclusion for a commercial motor policy?
The use of the insured vehicle. The insurer is not liable if the vehicle is used other than in accordance with the use stipulated in the policy schedule or engaged in racing, peacemaking, reliability trials trials or speed testing
Third-party cover is usually Lower for commercial vehicles and certain of a cover applies which are specific to commercial vehicles for example
When loading or unloading all for trailers
What are the optional extensions to commercial motor insurance?
Third-party property damage. Medical expenses personal accident benefits. Personal belongings and clothing. Glass cover. Indemnity to hires. Indemnity to principal in connection with some contract work. Carnivals. Seat and ropes. Lots of use. Lots of tools in transit
What forms part of the stand cover that is provided under a comprehensive private motor policy?
Accidental damage to the insured vehicle. Drivers personal accident benefit. Recovery of a vehicle to a repairer after an accident. Third-party liability cover in the event of an accident.
Under a third-party only motorcycle policy what cover is provided as standard
Emergency treatment fees
Why is a limit of liability necessary for commercial motor insurance?
I limit is necessary because of the nature of some commercial vehicles which due to the size and weight and a type of property they may be carrying could cause considerable damage.
What are the main three classes of motor insurance?
Private cars, motorcycle, commercial
What is the minimum motor insurance cover required in order to comply with the Road traffic act 1988?
The minimum requirement by law is to provide insurance in respect of legal liability for third-party bodily injury or death (unlimited) and third-party property damage 1.2 million for payment of emergency treatment fees
The two specific exclusions in respect of third-party liability include?
Damage to property including vehicle owned, held in trust by or in the custody or control of any person claiming indemnity under the cover. Liability covered by any other insurance policy.
What is the main difference between third-party fire and theft cover and comprehensive cover?
The main difference is that comprehensive cover grant cover for accidental and even malicious damage to the insured vehicle.
What are five of the optional extensions to a comprehensive motor policy?
Increased cover for personal belongings and clothing, young additional drivers, loss of use, additional personal accident benefits, elections, racing, competitions, rallies and trials, caravans and trailers, breakdown cover and joint policies
What are the main differences between the standard comprehensive motor policy and a standard comprehensive motorcycle policy?
The accidental damage section is the same except that for motorcycles it excludes theft of accessories/spare parts unless the motorcycle is stolen at the same time. The liability section for motorcycles generally indemnifies the insured all their personal representatives in the event of the insureds death. Others who have been permitted to use the motorcycle would also be indemnified. There are no personal accident benefits, medical expenses or personal effects cover under the standard motorcycle policy
What are the main groups of commercial vehicles?
Goods carrying vehicles such as lorries, passenger carrying vehicles such as buses. Agriculture and forestry vehicles. Vehicles of special construction such as ambulances and fork lifts.
Why is driving other vehicles cover omitted from the commercial motor cover?
Because the range of vehicles is so extensive that insurers do not want to encourage the insured to drive other vehicles.
Under which insurance policy does an employer normally insure his liability in respect of injury to his employees being driven as passengers in the employer’s cars?
Motor policy
Under a third party only private motor insurance policy, cover in respect of third party property damage is usually subject to what maximum limit?
£20m
£1.2 RTA
What cover, if any, is provided under a comprehensive private motor insurance policy for a caravan whilst it is attached to the insured vehicle?
3rd party only
What standard cover is provided under a third party only motorcycle insurance policy in respect of injury to the insured in the event of an accident?
Emergency treatment fees
What cover must be included under a motor insurance policy to comply with the Road Traffic Act?
Legal liability for death or injury to third parties.
A motorist suffers damage to his comprehensively insured vehicle and takes it to a repairer with whom the insurer has direct billing arrangements. The insurance policy has a £100 excess. Assuming the claim is valid, how is the claim likely to be settled?
The insured pays the excess to the repairer and the insurer then pays the balance to the repairer.
Which organisation will settle a claim from a pedestrian injured by an uninsured motorist?
The Motor Insurers’Bureau
John’s car is involved in an accident and declared to be beyond economic repair. He has a comprehensive insurance policy with no excess and his insurer assesses the pre-accident value of the car to be £1,000. The insurer estimates the salvage could be sold for £100, but John asks to keep the car. How much will the insurer offer to settle the claim?
£900
Colin has a comprehensive motor insurance policy allowing any driver to use his car. Joan, who has the same level of cover and a driving other cars extension, borrows Colin’s car and injures a third party whilst driving. How will the subsequent claim from the third party be dealt with?
Colin
Stephen 830 to suffered a broken leg as a direct result of a car accident what is the maximum period of time after the accident during which he may initiate legal proceedings for compensation in respect of his personal injury
Three years
With a commercial motor insurance policy what specific documentation is always required from the insured when the vehicle is deemed a total loss
Vehicle registration certificate
What information is provided by telematics when used in cars
The time of day or night the car is driven. The speed at which is driven on different sorts of road. How smoothly it is driven. Where the brakes are taken on long journeys. How many motorway miles are driven. Total mileage. Total number of journeys made
