Motor Insurance FAQs

  1. Can one a policyholder be compensated if his car gets stolen at gun point?

This will depend on the type of policy one has purchased. If the vehicle is comprehensively insured, the risk of theft is covered. Insures will carry out investigations to determine if the loss is genuine before they can effect settlement. However, where the cover is Third Party Only (TPO), the insurer will not be liable.

  • Is motor vehicle policy transferable?

The general position is that insurance contracts are not transferable. The policy is an agreement between the insurance company and the individual policy holders. In the event of an insured car being sold, the insurance certificate cannot be transferred and the new owner will have to take up a new insurance cover as the insured ceases to have a financial interest in the vehicle. If a loss occurs in a scenario where the vehicle is sold and the certificate not removed, the insurer is not liable.

  • What is the difference between third party and comprehensive motor vehicle insurance?

Where one purchases a motor policy, he/she become the first party while the insurer is the second party. Any other person is a third party. The third party insurance cover protects the insured against legal liabilities to third parties arising out of injuries or damage to third party property incase from an accident involving the insured vehicle. The policy does not protect the vehicle against damage or theft.

Comprehensive insurance on the other hand covers a policy holder against risks covered under third party only and extends to cover the vehicle against accidental damage, damage by fire as well as malicious damage and theft.

  •  Is motor vehicle valuation necessary every year before taking an insurance cover?

A car depreciates in value over a period of time. In some cases it can even gain in the case of an upgrade to some of the features and this will enable the insurance company to calculate the required premiums for the policy holder. Disputes arise during the claims process with regard to valuation reports on the Pre-accident or pre-theft of insured vehicles. To minimize these, insurers require vehicles where comprehensive insurance is sought to have their vehicles valued by motor assessors.

  • Why should one not admit liability?

Insurers generally prohibit their clients from admitting liability in case of accidents. This is because the admission prejudices the insurer’s position in negotiations with the third party. It is better to let the police accident investigators consider all the evidence for any information that may have affected the decisions you made when the accident happened.

  • Can a person insure his vehicle with more than one insurer in one year? How will the person be compensated?

This may be possible. There are however limitations. First, the motive of such a decision by the client may be questionable. A question in the proposal form requires the client to disclose whether the vehicle is insured by any other company. If this is not disclosed, the insurer discovers, the claim is not payable. If the client discloses, the insurers involved will contribute and the amount paid will not exceed the loss suffered.

  • Can a vehicle that hits another from the rear side be compensated?

Depending on the situation, the owner of the car hit behind is able to seek for compensation from the insurance cover of the other.

  • Can compensation be paid to the owner of a vehicle driven by a drunk driver?

No, reason being that it was due to carelessness of the drive who was driving under the influence.

  • Is the owner/ driver of motor vehicle covered in comprehensive motor insurance?

No, owner/ driver can cover themselves with a personal Accident Insurance which will ensure the financial stability for you and your family in the event of an accident. The policy covers death of individual, physical injuries and bodily burns.

  1. Are PSV drivers insured?

No, the driver of the vehicle is covered under employers Liability Insurance.

Leave a Reply

Your email address will not be published. Required fields are marked *