• DEFINITION AND FUNCTION
  • LIMITS OF LIABILITY OF INSURER
  • GENERAL CLASSES OF RISK COVERED

Motor Car Insurance, also referred to as Automobile Insurance, covers private cars, auto homes, trailers, buses, trucks, and other mobile vehicles. In the event of loss, the policy puts the Insured in the same position/situation as much as possible and within the limits of insurance policy, as he was if the event insured against did not occur, either by repair or replacement of the damaged vehicle or pay him in cash, and/ or relieve him of the burden of indemnifying third parties involved in the event. Also used for credit facility, i.e. security for loan with the vehicle as collateral.

The Limits of Liability of the Insurer are the amounts specified in the policy either for loss or damage to the vehicle or for liability to the third patties.

The General Classes of Risk covered are:

1.Physical Damage or Material Damage Cover – covers loss of or damage to the insured vehicle against risk specified in the policy

2.Liability Cover – covers liabilities of the insured for injuries which the insured vehicle may cause to people in the other vehicle or to the public in general, and to real or personal property of other people. However, accidental death or injuries to the assured, his driver, or passengers in his car may be covered under the motor insurance policy. The motor insurance can, therefore, be a combination of a property, public liability and personal accident covers. All these risks can be involved simultaneously in one single motor accident

3.Comprehensive Cover – covers loss or damage to insured vehicle and/or third party liability.