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.

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