ZIMSEC O Level Commerce Notes page: Insurance: Vehicle Insurance
- There are many types of vehicle insurance viz:
Third party insurance
- Is compulsory under the Road Traffic Act (RTA)
- Applies to motor vehicle insurance.
- Covers claims from the public who may be injured by the vehicle.
- Covers public property damaged by the vehicle.
- Does not cover:
- injury to the owner of the vehicle.
- Damage to the vehicle itself.
- Claims from fee-paying passengers who may be injured whilst in the vehicle.
Third party fire and Theft insurance
- loss or damage to the insured vehicle due to fire or theft.
- Loss of a third party’s belongings.
- The premium is higher than that of the third party insurance.
- Covers a wide range of risks including against:
- injury of a third party i.e. hospital expenses.
- Theft of the vehicle.
- Damage to the insured’s own vehicle.
- Personal injury to the driver.
- An expensive type of motor vehicle insurance.
- Covers towing expenses.
To access more topics go to the Commerce Notes page.