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IF 2 > MOTOR INSURANCE > Flashcards

MOTOR INSURANCE Flashcards

1
Q

What are the main classes of motor insurance

A
  1. Private Cars
  2. Motor Cycle
  3. Commercial Vehicles
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2
Q

Which insurance is the most significant compulsory Insurance in the UK

A

Private Motor Insurance

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3
Q

For a standard motor policy cover which levels are available

A

There are Four levels of cover

  1. Road Traffic Act Only
  2. Third Party Only
  3. Third Party, fire and theft
  4. Comprehensive
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4
Q

What is the Road Traffic Act Only Cover

A

This is the minimum cover required to comply with the Road Traffic Act 1988

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5
Q

What does the Road Traffic Act only cover entail

A

This cover entails that the minimum amount of cover for damage to third party property to be automatically adjusted in line with inflation every five years

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6
Q

What indemnity does Road Traffic Act Only provide

A
  1. Indemnity for bodily Injury or death caused to third parties including passenger( unlimited amount)
  2. Indemnity for loss or damage of property belonging to third party( p 1,200,000)
  3. Indemnity for claimant costs and expenses of handling claims
  4. charges for any emergency medical treatment and hospital charges arising out of the use of the vehicle
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7
Q

In order for Road Traffic Act Only to comply with Third EU Motor Insurance Directive all polices are required to provide

A

1.the minimum cover required by the EU country when being visited or minimum cover required by country vehicle is kept which ever is large
2.cover for liability to persons in the employment of the insured when travelling as passengers in the course
of employment

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8
Q

Road Traffic Act only is only offered in

A

It is only offered in the UK

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9
Q

The lowest level of cover offered by insurers is

A

Third Party Only cover

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10
Q

What does the Third Party Only cover provide

A
  1. It provides RTA cover
  2. Cover for vehicle while not on a road or public place remaining in the territorial limits
  3. P20M for third party property damage for private car policies
  4. Indemnity for accidents that occur when the insured is driving a car that doesn’t belong to them
  5. Indemnity to anyone driving/using the vehicle on the insured’s order or permission
  6. indemnity to passengers/employees or b’ness partners, if they are held responsible for an accident
  7. Legal cost incurred in defense of a claim
  8. Limited cover for legal representation costs
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11
Q

What are the specific exclusion related to third party liability

A
  1. Damage to property/vehicle owned/held/in custody of any person claiming indemnity under the policy
  2. Liability covered by any other insurance company
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12
Q

What does Third Party, fire and theft cover include

A

In addition to the Third Party Cover , this cover also includes the cost of repair or compensation to the insured vehicle if the vehicle

a. damaged by fire/lightning/explosion
b. stolen and not recovered
c. damaged by either attempted theft or while it was stolen

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13
Q

What are the exclusions for third party, fire and theft

A

The exclusions are loss of use .payment the insured may have to make (taxis) while their car is being repaired/recovered

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14
Q

The most common form of motor insurance cover is

A

Comprehensive Cover

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15
Q

What protection does the comprehensive cover provide

A

In addition to cover for third party, fire and theft, this policy also covers other accidental and malicious damage to the insured’s car. similar to an All risk policy subject to specific exclusions

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16
Q

What are the exclusions under comprehensive cover

A
  1. loss or damage to spare parts unless on the vehicle or insured’s garage
  2. wear and tear and depreciation
  3. damage to tyres caused by road punctures or bursts
  4. mechanical and electrical failure/breakdown
  5. loss of use
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17
Q

What are the optional extensions

A
  1. Breakage of glass
  2. Personal belongings and clothing
  3. Young additional drivers
  4. Loss of use
  5. Personal accident benefits
  6. Foreign use
  7. Elections-parliamentary election additional premium is charged
  8. Racing/competition.rallies trials
  9. Caravans/trailers
  10. Joint Polices
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18
Q

What are the General exclusions for all Motor Private Vehicle Cover

A
  1. driving by unlicensed drivers
  2. Using insured vehicle outside policy permission
  3. contractual liability
  4. War Risks
  5. Radioactive contamination and explosive nuclear
  6. riot and civil commotion
  7. sonic bangs
  8. pollution and contamination unless arising from a single identifiable event
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19
Q

What does the Road Traffic Act state is the responsibility of the insurer

A

The insurer must pay an RTA claim, even if the policy wording states that it is excluded, as insurer is permitted to seek to recover its outlay from the insured

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20
Q

The single method of insuring motorcycles is

A

Specified Motorcycle Insurance, driver is insured for particular motorcycle

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21
Q

What is the format for a standard policy for comprehensive motorcycle policy

A

It’s similar to that of the motor private policy and the main differences are

  1. Accidental damage section doesn’t cover theft of accessories or spare parts unless the MC itself is stolen
  2. Liability section indemnifies the insured/ personal representative in event of death, the rest permitted to drive the MC and users if the MC for social domestic pleasure
  3. No personal accident benefits/medical expenses/personal effects except for emergency treatment fees
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22
Q

What are the optional extensions available for Motorcycle cover subject to additional premium

A
  1. Trailers
  2. Driving other cycles
  3. More than one cycle insured
  4. Invalid carriages/mobility vehicles
  5. Invalid carriages/ mobility vehicles
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23
Q

What are the main types of commercial vehicles

A
  1. Goods-Carrying Vehicles
  2. Passenger- Carrying Vehicles
  3. Agricultural and forestry vehicles
  4. Vehicle of special construction’Special types
24
Q

What is commercial Insurance primarily concerned with

A

It is concerned with the risks which attach to the vehicles themselves while they are driven, left parked or being carried by sea or air between different parts of the UK. DOES NOT INCLUDE any goods carried by the vehicles

25
Q

Commercial Vehicle for third part liability

A

It provides unlimited indemnity for death/bodily injury to third parties. 5 million p in limit for third party property damage. Limit increases with an additional premium

26
Q

What covers are extended in third party liability for commercial vehicles

A
  1. Third party liability on accidents while loading or unloading vehicle
  2. Indemnity to the driver- anyone can drive the vehicle in the order of the insured
  3. Indemnity to user
  4. Indemnity to passengers
  5. Certain legal costs
27
Q

What is the cover of loss of or damage to the vehicle for commercial vehicles

A

This covers any loss or damage to the vehicle to its spare parts and accessories while they are on the vehicle and not when they are detached

28
Q

Do insurers cover towing of trailers

A

Yes it covers towing of trailers under third party liability

29
Q

How does cover for trailer work in commercial vehicles

A
  1. Articulated and non- articulated vehicles

2. Disabled mechanically propelled vehicles

30
Q

Articulated and non-articulated vehicles

A

Standards practice includes third party cover for trailers when attached to insured vehicles/ and even comprehensive cover is provided

31
Q

disabled mechanically propelled vehicles

A

Insurers now offer comprehensive cover to broken -down vehicle while attached to another vehicle of towing

32
Q

In most cases why is third party cover given to trailers

A

So that there is no cover for damage to the vehicle on tow or to any goods its carrying

33
Q

What covers provided in private motor polices not provided in commercial vehicles

A
  1. Personal Benefits

2. Driving other vehicles

34
Q

What are the additional optional extensions for commercial policy

A
  1. Third Party Property Damage
  2. Medical Expenses- personal accident benefits
  3. Personal belongings and clothing
  4. Windscreen/glass cover
  5. Indemnity to hirers
  6. Indemnity to principal
  7. Carnival
  8. Sheets and ropes
  9. Loss of use
35
Q

What is the limitation for commercial vehicles

A

The limitations are similar to the ones in private except for use of insured vehicle. Insurer is not liable for the vehicle if used other than in accordance stipulated in the policy
And engaging in racing/speed testing etc

36
Q

RTA relates to the use of Motor vehicles

A

On road or any public place

37
Q

Comprehensive private motor policy provides driving other cars extension, how does it work

A

It works the same way as the third party policy, it’s important to note this only covers third party cover even under comprehensive motor policy

38
Q

The term inexperienced in motor insurance means

A

It means either holding a provisional licence or not having held a full license for a period of at least a year

39
Q

What other benefits does the comprehensive cover offer

A
  • personal accident cover
  • Medical expenses
  • personal belongings and clothing
40
Q

Under comprehensive cover what does the personal accident cover entail

A

it provides certain benefits to insured/spouse if they are seriously injured due to the accident to any car they are driving or travelling in

41
Q

Under comprehensive cover what does the Medical Expenses cover entail

A

It includes additional medical expenses cover apart from the one compulsory offered under the RTA for the insured or a passenger

42
Q

Under comprehensive cover what does the Personal belongings and clothing cover entail

A

The cover can be around 250 pounds, but 1,000 pounds is not common to cover personal effects and clothing in the car that are lost/damaged by accident,theft or fire

43
Q

Generally how do insurers reduce the entitlement to a No Claim Discount

A

They drop back two years if a claim is made

44
Q

How can a full no claim discount be protected

A

For a small additional cost

45
Q

When the insured is hit by an insured driver how is their no claim discount protected

A

IT’s protected with the extension of uninsured driver promise, provided full details of the third party vehicle involved

46
Q

When is the no claim discount not protected

A

If the accident was a hot and run and the of the third party can’ t be traced and details are not available

47
Q

claim payment under which optional extension does not affect the No claim discount

A

Breakage of glass

48
Q

In loss of use cover,what are courtesy cars

A

This are alternative vehicles offered by repair garages, while they hold customer’s vehicle for repair

49
Q

When do insurers issue Green Card

A

This is a recognized international certificate and is always needed for travel outside the EU,Croatia, Iceland, Norway,Switzerland,Luxembourg,Andorra, Liechtenstein

50
Q

Spain used to issue a Spanish Bond, What is this

A

This is an agreement whereby the insurer would make a sum available to secure the release of the policyholder/driver from prison in Spain, if arrested following a motoring accident

51
Q

Do insurers charge an extra premium for election extension

A

Insurers don’t charge an additional premium for such an extension except in the case of parliamentary elections

52
Q

Do road safety rallies are covered with additional charge

A

No, they are not except for racing which is covered by few specialist insurer

53
Q

When do insurers offer third party cover for caravans/trailers

A

Insurers will offer this cover if the caravans/trailers are attached to the insured vehicle

54
Q

If a wider cover other than third party cover for caravans and trailers is required, how is the caravan insured

A

Caravan will be insured under a separate non-motor policy

55
Q

Personal car insurance excludes

A

peer to peer renting

56
Q

How have new market platform dealt with peer to peer renting

A

By issuing separate policies to cover the vehicle and the renter during the renting period, it supersedes renter’s personal insurance and protects the vehicle owner in the event of a loss

IF 2 (13 decks)

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