Insurance WAEC

Motor Insurance

Overzicht

Every legally driven car, bus and okada on a Nigerian road carries motor insurance, whether the owner realises it or not, because the law will not let it move without at least the minimum cover. Motor insurance is the largest compulsory class of insurance in the country, and the one most likely to touch your own family. Yet most drivers cannot say what their certificate actually protects, or whose loss it is really designed to pay.

This lesson sorts the confusion out. You will learn the ladder of motor policies from bare third party cover up to full comprehensive, exactly what each one pays for and what it quietly leaves out, why the law forces every motorist to buy third party cover, and how the ECOWAS Brown Card lets a Lagos driver cross into Cotonou or Accra and still be insured. These are marks that appear on every Insurance paper.

Doelstellingen

  1. Identify the types of motor insurance policy and state the cover each provides
  2. Explain the scope of cover under a third party policy and under a comprehensive policy
  3. Explain the statutory requirement for third party motor insurance in Nigeria
  4. Describe the ECOWAS Brown Card scheme and explain its purpose for cross-border motoring

Mindmap

Dit onderwerp is in kaart gebracht zodat je ziet hoe de ideeen samenhangen.

Flashcards

Snelle geheugentraining op wat bij dit onderwerp getoetst wordt.

Lesnotitie

A commercial driver in Kaduna knocks down a pedestrian on his way to the motor park. The victim spends months in hospital and cannot work. Who pays? If the driver is a rich man, perhaps he settles privately, but most drivers are not rich, and an injured stranger cannot wait on the driver's goodwill. This is the problem motor insurance was invented to solve: making sure that an innocent person hurt on the road can actually be compensated, whether or not the driver who hurt them has money. Once you see that motor insurance exists first for the victim and only second for the vehicle owner, every rule in this topic falls into place.

Lesevaluatie

Gefeliciteerd met het voltooien van de les op Motor Insurance. Nu je de sleutelconcepten en ideeën, het is tijd om uw kennis op de proef te stellen. Deze sectie biedt een verscheidenheid aan oefeningen vragen die bedoeld zijn om uw begrip te vergroten en u te helpen uw begrip van de stof te peilen.

Je zult een mix van vraagtypen tegenkomen, waaronder meerkeuzevragen, korte antwoordvragen en essayvragen. Elke vraag is zorgvuldig samengesteld om verschillende aspecten van je kennis en kritisch denkvermogen te beoordelen.

Gebruik dit evaluatiegedeelte als een kans om je begrip van het onderwerp te versterken en om gebieden te identificeren waar je mogelijk extra studie nodig hebt. Laat je niet ontmoedigen door eventuele uitdagingen die je tegenkomt; beschouw ze in plaats daarvan als kansen voor groei en verbetering.

  1. Which motor policy covers the insured's liability to other road users but does nothing for the insured's own vehicle? A. Comprehensive B. Third party, fire and theft C. Third party only D. Personal accident Answer: C
  2. A comprehensive motor policy covers all of the following EXCEPT: A. Accidental damage to the insured vehicle B. Ordinary wear and tear of the insured vehicle C. Theft of the insured vehicle D. Injury to a third party Answer: B
  3. In Nigeria, third party motor insurance is best described as: A. Optional for private cars B. Compulsory by law C. Required only for commercial vehicles D. Available only with a Brown Card Answer: B
  4. The main purpose of the ECOWAS Brown Card is to provide: A. Comprehensive cover for vehicles within Nigeria only B. Recognised third party motor cover across ECOWAS member states C. Life assurance for cross-border travellers D. Free repairs at approved workshops abroad Answer: B
  5. Under a third party only policy, a driver who negligently damages his own car and a stranger's fence will have paid: A. Both the car and the fence B. Only his own car C. Only the stranger's fence D. Neither, as third party cover pays nothing Answer: C

Aanbevolen Boeken

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Ondertitel: Thirteenth edition
Uitgever: Pearson
Jaar: 2016
ISBN: 978-0-13-408257-8
Beschrijving: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Ondertitel: Tenth edition
Uitgever: Wiley
Jaar: 2008
ISBN: 978-0-470-08753-4
Beschrijving: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Ondertitel: Second edition
Uitgever: Himalaya Publishing House
Jaar: 2017
ISBN: 978-93-5097-079-9
Beschrijving: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Herhalingsvragen

Benieuwd hoe eerdere vragen over dit onderwerp eruitzien? Hier zijn een aantal vragen over Motor Insurance van voorgaande jaren.

WAEC SSCE - Insurance - 2014

Vraag 1 Verslag

  1. (i) Explain ECOWAS Brown Card.

    (ii) State two conditions under which ECOWAS Brown Card is issued

2. List and explain three types of policies available under motor insurance.

Antwoorddetails

(i) ECOWAS Brown Card

The ECOWAS Brown Card is a regional motor insurance scheme operated by member states of the Economic Community of West African States. It is a certificate of insurance that guarantees prompt and fair compensation to victims of road accidents caused by visiting motorists from other ECOWAS countries. It enables a motorist to cross national borders within the sub-region with a single insurance document, so that a victim in the country visited can claim against a national bureau rather than pursue a foreign insurer.

(ii) Two conditions under which the ECOWAS Brown Card is issued

  1. The vehicle owner must already hold a valid motor insurance policy in his home ECOWAS country before the Brown Card can be issued as an extension.
  2. The motorist must be undertaking or intending a journey that crosses into one or more other ECOWAS member states (inter-state travel), and the issuing insurer must be a member of the national bureau operating the scheme.

2. Three types of policies available under motor insurance

  1. Third party only policy: Covers the insured's legal liability for death or bodily injury to third parties and damage to their property, but not the insured's own vehicle.
  2. Third party, fire and theft policy: Gives the third party cover above and, in addition, indemnifies the insured for loss of or damage to his own vehicle by fire or theft.
  3. Comprehensive policy: The widest cover, adding to the above accidental and collision damage to the insured's own vehicle plus extras such as medical expenses and personal accident benefits.
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