Image credit netcarshow.com

Image credit netcarshow.com

ZIMSEC O Level Commerce Notes page: Insurance: Vehicle 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

  • Covers:
  • 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.

Comprehensive policy

  • 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.

 


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