Motor Insurance

Understand insurance products and associated services:

a. Know the features, extensions and exclusions of motor policies:-

     1.   Road Traffic Act (RTA) 1988:-

                 a. Unlimited cover for bodily injury or death to Third Parties

                 b. Third Party Property damage – £1,200,000 (this complies with the 5^th EU Directive 2005)

                 c. Claimants costs and expenses

                 d. Emergency Medical Treatment and hospital charges arising out of the vehicular use

                 e. E.U. cover for Third Party liability, 3^rd EU Directive 1992 (now green card required due to Brexit) 

                 f.  EU cover for employees travelling as passengers in the course of their employment 

      2. Third Party (all the above plus):

                  a. Increased in Third Party damage to £20,000,000

                  b. Passenger Indemnity 

                  c. Claimants costs of defending a claim 

                  d. Note 2 exclusions: No cover for own vehicle damage & Liability covered by another policy

                  e. E.U. cover for Third Party liability, 3^rd EU Directive 1992 (now green card required due to Brexit)

                  f. EU cover for employees travelling as passengers in the course of their employment 

      3.   Third Party, Fire & Theft (in addition to the above)

                  a. Compensation if the vehicle is stolen or damage

                  b. During Theft or attempted theft.

                  c. Damage by fire lightening or explosion

                  d. EU Third Party Liability, 3^rd EU Directive 1992 (now green card required due to Brexit)

                  e. EU cover for employees travelling as passengers in the course of their employment 

                  f. Loss of Use generally excluded but some insurer add a benefit of a hired car when is stolen or damaged by theft.

          NB: Exclusions are the same as in Third Party above

4.  Comprehensive: (The widest cover available, all risk except the exclusions below)

                  a. Unlimited cover for bodily injury or death to Third Parties

                  b. Third Party damage to £20,000,000

                  c. EU Third Party Liability, 3^rd EU Directive 1992 (now green card required due to Brexit)

                  d. EU cover for employees travelling as passengers in the course of their employment .

                  e. Driving other cars extension (only for Third Party liability, can must be hired by the insured)

                  f.  Policy can be extended to cover: Personal Accident, medical expenses and personal effects

NB: Exclusions: general and market exclusions in addition to:- 

                   i. Wear and tear 

                   ii. Depreciation

                   iii. Loss or damage to accessories or spare parts unless in the vehicle or garage.

                   iv. Loss of Use (can be bought back)

                   v.  Mechanical or Electrical failures

                   vi. Tyre damage from punctures or blowouts.

                   vii. Contractual Liability

                   viii. War risks

                   ix.   Use other than as specified in the certificate of insurance

                   x.    Riot and civil commotion

                   xi.  Terrorism

                   xii  Sonic bangs

4.  Comprehensive: (The widest cover available, all risk except the exclusions below)

      Optional Extensions: (sometimes for an additional premium)

        a. Breakage of Glass (for non comprehensive policies, standard cover under comprehensive)

        b. Personal belongings and clothing (increased limit above the standard cover)

        c. Young additional drivers – free as an occasional driver but paid if MAIN driver, age & exp. noted 

        d. Loss of use for a fixed amount per day or a curtesy or hired car will be provided.

        e. Additional personal accident benefit

        f.  Foreign use for comprehensive cover, the EU only offers TP Liability cover

        g. Racing competition, rallies and trials

        h. Caravan and trailers (usually Third-Party cover whilst attached to the vehicle)

        i.  Breakdown cover – helplines or cost for the roadside assistance.

        j.  Legal assistance / Legal expenses (added for an extra premium)

        k. Joint policies, this list is not exhaustive…..

Motorcycles: (covers any mechanically propelled cycles, cover subject to the RTA)

         a. No cover for theft and accessories unless the cycle is stolen at the same time.

         b. Liability section also covers personal representatives or other authorized drivers for S.D.P usages

         c.  No personal accident or medical expenses (beyond emergency treatment fees) or personal effects cover.

Optional Extensions: (for the payment of an additional premium)

         a. accessories or spare parts

         b. Trailers 

         c. Driving other cycles & more than one cycle insured

         d. Invalid carriage

The policy exclusions are essentially the same as for private motor insurance