MOTOR INSURANCE POLICY
Description of Motor Insurance Business:
Motor Insurance: Different types or policies may be issued for different types of motor vehicles, Motor vehicles are usually classified in the following manner:- Private Cars, Commercial vehicles, Motor Cycles, Agricultural vehicles, Motor Trade vehicles.
Motor policies issued are usually of the following types irrespective of the class of vehicles:
a) Comprehensive policy
b) Act liability only policy.
Definition of private vehicle:
The Vehicles under private registration & used for private purposes only.
Direct risks covered under private motor comprehensive insurance policy
Fire, explosion, burglary and theft, riot & civil commotion, earthquake, flood & cyclone, storm, any type of accidental loss and Act liability (Life & property)
Definition of commercial vehicle:
The vehicle used for hire or reward and which are not provided for under the scope of private vehicle or motor cycle and registered as commercial vehicle.
Direct risks covered under commercial motor comprehensive insurance policy
Fire, explosion, burglary and theft, riot & civil commotion, earthquake, flood & cyclone, storm, any type of accidental loss and Act liability (Life & property)
In addition in respect of a commercial vehicle which is used for carriage of passenger for hire or reward and in respect of which legal liability to passenger is required to be covered in terms of the motor vehicles Act 1991 is subject to additional premium (Passenger risk coverage is compulsory) of liability to passenger in accordance with the premium of the motor tariff
