wealthfactsheet-general_insurance-motor

1. Motor Insurance.
Motor insurance is to indemnify an insured from the possible loss of a vehicle due to accident.

An accident could be due to the cause of an insured on another party or another third party on the insured. In certain countries, motor insurance are mandatory, which is to exercise precautionary responsibility to individuals, otherwise there will be widespread chaos and vehicles could be used as weapons against each other.

Types of Motor Insurance:
1. Third Party
Third party insurance will indemnify third party who incur losses to their vehicles as a result of the insured's negligence. The insured will indemnify the insured on the third party's losses but not his own.

2. Third Party, Fire & Theft
Third party insurance will indemnify third party who incur losses to their vehicles as a result of the insured's negligence. The insured will indemnify the insured on the third party's losses but not his own.

Fire and theft includes loss of the insured's vehicle due to a fire or when a theft occurs and the definition is usually total loss due to either a fire or theft.

3. Comprehensive
Comprehensive usually covers every aspects of a loss to a vehicle stating the insured and who ever is affected, which is the third party. Comprehensive cover is the most popular but it is also the most expensive of the 3.

4. Trader's Motor Insurance
This form of insurance is to cover motor trader's in the event that an accident occured during the course of selling the vehicle. This is to indemnify a motor trader so that losses are kept to the minimum before a sale is made.

Things to look out for:
No Claim Discounts
In certain countries like Singapore, No claim discount is very common. In short it is NCD and NCD is used as an incentive to give very good drivers extra discount on their motor insurance policies as long as no claims are made.

Named Drivers
Certain insurance companies allow a maximum of 4 name drivers to be named in the main policyholder's motor insurance while others have unlimited amount of unnamed drivers to be insured in their policies.

Named drivers means that an insurance company will insure the named driver in the main policyholder and if a named driver is involved in an accident of the insured vehicle, a claim can be made.

Other types of Non-Life/General Insurance:
1. Motor Insurance
2. Fire Insurance
3. Travel Insurance
4. Contents Insurance
5. Property Insurance
6. Business Insurance
7. Liability Insurance
8. Marine Insurance
9. Others...