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THE INSTITUTE OF FINANCE MANAGEMENT (IFM)

FACULTY OF INSURANCE AND SOCIAL PROTECTION DEPARTMENT OF INSURANCE IRM 856: MOTOR INSURANCE GROUP ASSIGNMENT BIRM III A, GROUP 2

PARTICIPANTS
1. MWASOTA MOSES 2. NCHANILA A. EXPERIUS 3. SAMBEGA ALISTALIKO 4. AZIZI BARAKA PASCHAL QUESTION:

REGISTRATION
BIR/10/51342 BIR/10/50162 BIR/10/50895 BIR/10/51426

Discuss the general exception provided under commercial car policy

Commercial Car Policy Commercial car policy is a designed car policy to cover loss or damage to commercial vehicles. The policy consists of three sections on its operative clause namely; Section I: Loss or Damage. Indemnity is provided in respect of loss or damage to the vehicle, spare parts and accessories whilst there on caused by the following events i) Accidental collision or overturning consequent upon mechanical breakdown or consequent upon wear and tear ii) Fire, explosion, self ignition and ignition iii) Malicious damage. Other covers are hire purchase agreement, protection and removal, authority to repair. Section II: Liability to third party. The company will indemnify the insured in the event of accident caused by or arising out of the motor vehicle or in connection with unloading or unloading of the motor vehicle. That is provides cover against i) death or bodily injury to any person ii) Damage to property. Section III: Towing disabled vehicle. The company will indemnify the insured in term of section II in respect of liability in connection with such towed vehicle. The following are the general exceptions provided under the commercial car policy. Any loss or damage to the vehicle while being used outside the geographical area. Once it comes into insurers attention that the motor vehicle has been used outside the stated limit of boundary and suffer a loss, the loss will not be payable by the insurer. Any loss or damage o the motor vehicle while being driven by unauthorized driver. In the proposal form the insured declares persons authorized to drive the motor vehicle, in case of an accident caused by unauthorized driver, the company will not be liable for the loss. Any accidental loss or damage to any property whatsoever or any loss experience arising from consequential loss. The company will not cover any loss due to consequential loss for instance loss of income. Loss or damage caused by nuclear or radiation. These are fundamental risks which are difficult to measure the size of the loss suffered. Due to the market practice of many insurance markets the insurers do not cover such losses.

Any liability which attaches by virtue of agreement but which could not have attached in the absence of such agreement. In conclusion, the exception within commercial motor vehicle policy discharge the insurer from the liability which has no adequate knowledge of the particular risk for instance nuclear and radiation risk.

REFERENCES
.Canner K 1st ED (1979) Motor Insurance Theory and Practice

Chartered Insurance Institute (2003), Commercial Insurance Practice Hard Ivany E.R 4th Edition (1984) and Fire and Motor Insurance. Kenneth Canner, (1994), Motor insurance Theory and Practice (2nd ed), Wither by &Company Ltd London

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