Private Motor Vehicle Policy
Cover for Loss or Damage (on the Insured) to the vehicle by collision (Crash), Overturning, Fire or Theft, Malicious Act while in transit land or sea.
Maximum Coverage for private motor vehicle would be the lesser of the Market Value or the Sum Assured (Protection plus the Removal Cost).
Private Motor Exclusions would include the following:
- Consequential Loss - Depreciation.
- Tyres (unless damaged by crash).
- Windscreen (unless theft or mallis actions).
Motor Vehicle Policy Contract
Third Party Liability include the following:
- Death and Disability.
- Property Damage.
- Cost Expenses - Insurer Consent.
Employee Liability include the following:
- Death and Disability not covered.
- See Workmen Compensation.
Comprehensive Private Motor Contract with no additional charge include:
- Carage (Damage and Fire).
- Medical Expenses (Occupants).
- Personal Accident Cover (Insured and Spouse).
- Clothing and personal effects.
Comprehensive Private Motor Contract with additional charge include:
- Flood, Nature Risk, Riot and Strickers.
- Windscreen Breakage.
THIRD PARTY INSURANCE
1. Mandatory in Trinidad & Tobago
2. Governed by THE MOTOR VEHICLES INSURANCE (Third Party Risks)ACT of 1933
3. Updated by the MOTOR VEHICLES INSURANCE (Third Party Risks) (Amendment) ACT no. 38 of 1996 DEFINITION OF THIRD PARTY INSURANCE A “Third Party” is considered to be any person or property outside or excluded from a contract arrangement between the ‘first party’ (in insurance terms – the client) and the ‘second party’ (in insurance terms – the Insurance Company) Therefore “Third Party” Insurance refers to anyone other than the Insurer and the Insured.
The Certificate of Insurance is a legal document that shows the proof of third party insurance as mandated by the Act of 1933. (importance of certificate – lost or misplaced, why it says Third Party on the certificate and not comprehensive) Third Party Insurance covers ALL COSTS AND EXPENSES for the following:-
1. Accidental Death or Bodily Injury to the person and/or…
2. Accidental Damage to third party property arising out of …….the use/operation of the vehicle – Automobile Liability ……the use/operation of the business – Public Liability ……the use/operation of the contract – Contractor’s Liability Some examples of costs and expenses are collision damage, medical expenses, wrecking fees.
There are two (2) exceptions in law to the “ALL” …. They are: - Breach of use - Third Party claims caused whilst the vehicle is driven by a thief. GLOC General Insurance Agency Page 6 POPULAR USES OF MOTOR VEHICLES:
Private UseUsed for social, domestic and pleasure purposes and for use in the Insured’s business - Registered with the prefix ‘P’ as the first letter on the license plate. - Normally associated with a car, station wagon or SUV type vehicle. Commercial Use
#1:- - Used for social, domestic and pleasure purposes and for use in the Insured’s business - Used also for the carriage of goods for hire and reward or general cartage. (other than the carriage of passengers). - Registered with the prefix ‘T’ as the first letter on the license plate. - Normally associated with a station wagon or pick-up type vehicle or Truck. Commercial Use
#2:- - Used for social, domestic and pleasure purposes and for use in the Insured’s business - Used also for the carriage of passengers for hire and reward. - Registered with the prefix ‘H’ as the first letter on the license plate. - Normally associated with cars, minivans and buses.
DETERMINING THE AMOUNTS OF THIRD PARTY LIABILITY
The amount to indemnify the Third Party is determined via the limits of liability; which is the maximum amount the Insurer will pay on the insurance contract.
LIMITS OF LIABILITY ACT of 1933 Amended ACT of 1996 Death/Bodily Injury- Any one claim from $ 200,000 $1,000,000 Total claims from $1,000,000 $2,000,000 Property Damage- Any one claim from $ 50,000 $500,000 Total claims from $ 200,000 $1,000,000 GLOC General Insurance Agency Page 7 Guardian General offers their clients increased Limits of liability as follows:- Death/Bodily Injury- Any one claim from $2,000,000 Total claims from $4,000,000 Property Damage- Any one claim from $1,000,000 Total claims from $2,000,000 THIRD PARTY FIRE & THEFT INSURANCE This is exactly what it is – Third party insurance, plus fire coverage, plus coverage for theft. We will determine how to rate this together with the other type of insurance.
This comprises of Third party insurance, plus fire coverage, plus theft coverage, with the addition of insurance for OWN DAMAGE to the insured vehicle. The contract is modified to include damages to the person own vehicle as a result of negligence of the Insured.
DETERMINING THE AMOUNT OF PREMIUM For Third Party insurance it is based upon engine size – the premise was that the bigger the engine size, the more powerful the engine and vehicle and the more damage it would cause as a result of an accident.
For Comprehensive and Third Party, Fire & Theft it is determined by knowing the MARKET/REPLACEMENT value of the vehicle. In order to determine what to pay the person as damages to his/her vehicle we need to determine a value at loss or SUM INSURED. It is this figure that the rating is applied to and determines the size of the premium to be paid. The final premium is a blended figure of the premium for third party risks and own damage risk, plus additions and taxes.
THE DEDUCTIBLE (EXCESSES) All general Insurance Policies carry an excess. It is defined as the first amount that the Insured is responsible before the insurance contract will respond for any claims made on the policy. Excess vary from policy to policy and can be either a flat premium excess or a percentage of the Sum Insured/Loss amount.