Motor Insurance Policies can be broadly divided into three types: Comprehensive insurance; Third Party Fire and Theft Insurance; and Third Party Insurance Only.
Although it is the most comprehensive type of car insurance available, the name “comprehensive” can be misleading. The Comprehensive Motor Policy will protect the Insured from any loss or damage to the insured vehicle. It also covers third party claims for damage or loss to their vehicles or property. However, certain conditions must be met.
These provisions make the policy less comprehensive than it should be. It is important to be aware of these conditions and to follow them. This will ensure that you do not have to pay any claims. Apart from these provisions, car policies often include exclusions. Although most exclusions will apply to all contracts for car-insurance, some exclusions may only be applicable to certain Insurers. Therefore, it is equally important that you are familiar with exclusions in your specific policy.
You should be aware that some items, such as luggage or the contents of a vehicle, may not be covered by your policy. Insurers will usually place a limit on liability and require that such items are stored in a safe place such as a cubbyhole, or locked boot.
Most Insurers require some type of anti-theft protection. The minimum requirement in most cases would be that the vehicle have an immobilizer. For older vehicles, the Insurer may be willing to install an alarm or a lock on your vehicle. This needs to be agreed upon and stipulated in your contract.
All Insurers won’t provide vehicle coverage if the vehicle is not in roadworthy condition or complies with legal requirements. If the insured vehicle was not in a roadworthy state at the time of an incident, the Insurer can deny liability.
Many car policies have restrictions on who can drive your vehicle. This does not affect the insurance coverage. If you are involved in an accident where someone other than yourself is driving your car, it is important to know what your Comprehensive Policy covers. No problem if the person is nominated by your as an authorized driver under the Policy. As long as they have a valid driver’s license that is not endorsed and are driving with your permission. Most policies restrict the number of authorized drivers to the insured and their families. Your policy document will contain details about authorised drivers, as well as any limitations. These should be carefully reviewed.
A personal car policy will usually limit the vehicle’s use. If the vehicle is going to be used exclusively for business purposes, then the insurance company should be made aware and adjust the premium accordingly.
It is important to ensure that there are no restrictions on the location where the vehicle can be covered in case of theft or hijacking.
You must ensure that you are clear about what you need to do to avoid repudiating a claim. Ask your Insurer to clarify any terms in your policy.
It is a good idea for you to ask that the explanations be written so there is no dispute at a later stage.
Fire, Third Party, and Theft
This Policy is cheaper, and covers damage to your vehicle only from theft or fire. However, it does not cover damages that result from a motor accident. In the event of a third-party claim against you, third party damages will be covered. You are legally responsible for any damage to third-party property that results from the driving of the insured car.
This type of insurance is less expensive, but many of the restrictions and limitations imposed above will still apply. These provisions should be understood and followed.
Only Third Party
Third Party only Policy, which is the most expensive, does not provide protection for the insured vehicle. It only covers you against any claims that others may bring against you due to the use of your motor car.
These policies also have limitations, provisions and restrictions. It is important to be familiar with them.
You should remember that buying insurance and paying your monthly fee may not be enough to make sure you have insurance coverage. You need to be aware of what additional requirements you have in order to feel confident that your insurance will cover you in the event that there is a claim.