UPDATES ON AUTO INSURANCE

·        COMPREHENSIVE COVER

This provides the maximum coverage possible.  It could be likened to the All Risks cover in respect of household or industrial properties.  It is however subject to a number of exclusions which tends to make the “Comprehensive” title a misnomer.It, amongst others, affords indemnity in respect of theft, damage to own vehicle, third party liability for both bodily injury and property damage.

·       THIRD PARTY ONLY

This provides a restricted cover in the sense that damage to own vehicle is excluded.  Only third party liability is covered.

·       THIRD PARTY FIRE & THEFT

This provides in addition to third party liabilities, cover against fire and theft loss to own vehicle.  Accidental damage to own vehicle is however excluded.

INTEREST

The interest to be protected under this class of insurance could be classified as follows:-

Ø PRIVATE CARS

All private passenger cars including four wheel drive vehicles whether owned, leased, used in connection with the company operation or by officials of the company. Policy also covers third party property damage.

Ø COMMERCIAL VEHICLES (GOODS ONLY)

All goods carrying vehicles including Pick-up van(s) whether owned/leased, used in connection with the company’s operations.                       

Ø COMMERCIAL VEHICLE (OMNI – BUS)

            All passenger-carrying vehicles other than private cars.

Ø COMMERCIAL VEHICLE (SPECIAL TYPE)

            Mobile cranes, Fork lifts, Refuellers, Hydrant servicers and the likes.                            

Ø MOTORCYCLE

MOTOR VEHICLE INSURANCE, also called automotive insurance ,  a contract by which the insurer assumes the risk of any loss the owner or operator of a car may incur through damage to property or persons as the result of an accident. There are many specific forms of motor vehicle insurance, varying not only in the kinds of risk that they cover but also in the legal principles underlying them.

Liability insurance pays for damage to someone else’s property or for injury to other persons resulting from an accident for which the insured is judged legally liable; collision insurance pays for damage to the insured car if it collides with another vehicle or object; comprehensive insurance pays for damage to the insured car resulting from fire or theft or many other causes; medical-payment insurance covers medical treatment for the policyholder and his passengers.

According to the Insurance Information Institute, in the United States in the early 21st century, about two-thirds of the money spent on premiums for private passenger auto insurance went to claims. More than half of this amount covered car damage. The rest covered personal injuries. The remaining third of the money spent on premiums covered insurance companies’ expenses—such as commissions, dividends to policyholders, and company operations—and contributed to their profits.

In many countries, other approaches to automobile accident insurance have been tried. These include compulsory liability insurance on a no-fault basis and loss insurance (accident and property insurance) carried by the driver or owner on behalf of any potential victim, who would recover without regard to fault.