IF3 - Chapter 5: Insurance Products: Personal Insurances

What are the four levels of private motor insurance cover?

• Road Traffic Act only

• Third party only

• Third party, fire and theft

• Comprehensive

What does Road Traffic Act only insurance provide?

The minimum motor insurance required by law, covering liability for bodily injury/death to third parties and limited third-party property damage.

What does third party, fire and theft cover add?

Cover for the insured vehicle if it is stolen, damaged during theft/attempted theft, or damaged by fire, lightning or explosion.

What does comprehensive motor insurance add?

Accidental and malicious damage to the insured vehicle, in addition to third-party, fire and theft cover.

What are the three main types of health insurance?

Personal accident, sickness cover and medical expenses insurance.

What is a benefit policy?

A policy that pays an agreed amount when a defined event occurs, regardless of the insured's actual financial loss.

What is permanent total disablement (PTD)?

A permanent disability where recovery is not anticipated, such as certain brain injuries or paralysis.

What is temporary total disablement (TTD)?

An injury that prevents the insured from performing their usual occupation temporarily, normally resulting in a weekly benefit.

What does medical expenses insurance cover?

Private medical treatment outside the NHS, such as hospital charges, specialists' fees and certain additional costs.

What is commonly excluded from health insurance?

Pre-existing medical conditions, unless specifically agreed with the insurer.