MOTOR INSURANCE Flashcards
What are the main classes of motor insurance
- Private Cars
- Motor Cycle
- Commercial Vehicles
Which insurance is the most significant compulsory Insurance in the UK
Private Motor Insurance
For a standard motor policy cover which levels are available
There are Four levels of cover
- Road Traffic Act Only
- Third Party Only
- Third Party, fire and theft
- Comprehensive
What is the Road Traffic Act Only Cover
This is the minimum cover required to comply with the Road Traffic Act 1988
What does the Road Traffic Act only cover entail
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
What indemnity does Road Traffic Act Only provide
- Indemnity for bodily Injury or death caused to third parties including passenger( unlimited amount)
- Indemnity for loss or damage of property belonging to third party( p 1,200,000)
- Indemnity for claimant costs and expenses of handling claims
- charges for any emergency medical treatment and hospital charges arising out of the use of the vehicle
In order for Road Traffic Act Only to comply with Third EU Motor Insurance Directive all polices are required to provide
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
Road Traffic Act only is only offered in
It is only offered in the UK
The lowest level of cover offered by insurers is
Third Party Only cover
What does the Third Party Only cover provide
- It provides RTA cover
- Cover for vehicle while not on a road or public place remaining in the territorial limits
- P20M for third party property damage for private car policies
- Indemnity for accidents that occur when the insured is driving a car that doesn’t belong to them
- Indemnity to anyone driving/using the vehicle on the insured’s order or permission
- indemnity to passengers/employees or b’ness partners, if they are held responsible for an accident
- Legal cost incurred in defense of a claim
- Limited cover for legal representation costs
What are the specific exclusion related to third party liability
- Damage to property/vehicle owned/held/in custody of any person claiming indemnity under the policy
- Liability covered by any other insurance company
What does Third Party, fire and theft cover include
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
What are the exclusions for third party, fire and theft
The exclusions are loss of use .payment the insured may have to make (taxis) while their car is being repaired/recovered
The most common form of motor insurance cover is
Comprehensive Cover
What protection does the comprehensive cover provide
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
What are the exclusions under comprehensive cover
- loss or damage to spare parts unless on the vehicle or insured’s garage
- wear and tear and depreciation
- damage to tyres caused by road punctures or bursts
- mechanical and electrical failure/breakdown
- loss of use
What are the optional extensions
- Breakage of glass
- Personal belongings and clothing
- Young additional drivers
- Loss of use
- Personal accident benefits
- Foreign use
- Elections-parliamentary election additional premium is charged
- Racing/competition.rallies trials
- Caravans/trailers
- Joint Polices
What are the General exclusions for all Motor Private Vehicle Cover
- driving by unlicensed drivers
- Using insured vehicle outside policy permission
- contractual liability
- War Risks
- Radioactive contamination and explosive nuclear
- riot and civil commotion
- sonic bangs
- pollution and contamination unless arising from a single identifiable event
What does the Road Traffic Act state is the responsibility of the insurer
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
The single method of insuring motorcycles is
Specified Motorcycle Insurance, driver is insured for particular motorcycle
What is the format for a standard policy for comprehensive motorcycle policy
It’s similar to that of the motor private policy and the main differences are
- Accidental damage section doesn’t cover theft of accessories or spare parts unless the MC itself is stolen
- 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
- No personal accident benefits/medical expenses/personal effects except for emergency treatment fees
What are the optional extensions available for Motorcycle cover subject to additional premium
- Trailers
- Driving other cycles
- More than one cycle insured
- Invalid carriages/mobility vehicles
- Invalid carriages/ mobility vehicles
What are the main types of commercial vehicles
- Goods-Carrying Vehicles
- Passenger- Carrying Vehicles
- Agricultural and forestry vehicles
- Vehicle of special construction’Special types
What is commercial Insurance primarily concerned with
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
