6.

0 PRINCIPLES AND PRACTICE OF MOTOR INSURANCE AND

ASSESSMENT

6.1 Introduction
This course unit is intended to equip the trainee with knowledge, skills and attitudes
that will enable him/her to carry out motor vehicle assessment.

6.2 General Objectives

At the end of the course unit, the trainee should be able to:
a) evaluate the need for motor assessment to the clients
b) advise clients on claims
c) carry out customer service
d) apply professional business ethics in motor assessment
e) create good public relations of the insurance industry

6.3 Course Unit Summary and Time Allocation

Code Topics Content Time

(Hours)
6.01 The Nature of Motor  Historical development and 4
Insurance legislation of motor insurance
 Role of compulsory motor insurance
 Requirements of the Insurance
(Motor Vehicle Third Party Risks)
Act Cap 405
6.02 Motor Insurance  Nature of proposal form in motor 6
Documentation insurance
 Sections of the policy documents
 Meaning of endorsements
 Cover notes and certificates of motor
insurance
 Renewal procedure for motor
insurance
6.03 Motor Insurance  Meaning of the term underwriting 6
Underwriting Process  Significance of the sum insured, limit
of liability and excesses
 Factors limiting indemnity in motor
insurance
 Rating process in motor insurance

Page 1 of 4
Code Topics Content Time
(Hours)
 Computation of premium
 Operation of No-Claim Discount
(NCD)
6.04 Motor Insurance Policy  Levels of cover provided under 4
Covers motor insurance
 Policy extensions under motor
insurance
 The COMESA Yellow Card Scheme
6.05 Private Motor Insurance  Classes of private motor insurance 6
 Types of cover available under
private insurance
 Benefits under private motor car
policy
 Underwriting and rating factors
 Policy terms under private motor
insurance
6.06 Motor Cycle Insurance  General principles of motor cycle 6
insurance
 Basis of rating motor cycles
 Motor cycle policy
 Extra benefits under motor cycle
insurance
 Rebates under motor cycle insurance
 Towing of trailers
6.07 Commercial Vehicles  Goods carrying vehicles 6
Insurance  Passenger carrying vehicles
 Special construction vehicles
 Agricultural and forestry motor
vehicles
 Motor trade insurance
6.08 Motor Insurance Claims  Conditions for handling claims 6
 Claims handling procedures
 Claims handling process
 Methods of settling a claim
 Dispute resolutions mechanisms
 Insurance fraud
 Market agreements

Page 2 of 4
Code Topics Content Time
(Hours)
 Claims recovery process
6.09 Motor Vehicle  Procedure for routine inspection 6
Assessment  Third party inspections
 Electrical breakdown inspection
 Mechanical breakdown inspection
 Vehicle inspection for insurance
purposes
 Cases involving litigation
 Special investigations
 Repudiation
 Relationship among the insurer,
insured and the garage
 Duty of the assessor to principal
 Duty of the assessor to the insured
 Assessor’s relationship with brokers
 Role of assessor as an expert witness
6.10 Principles, Practices and  Advantages of using recommended 6
Procedures Applied in repairer
Motor Vehicle Accident  Rights of insurer
Repairs  Rights of insured
 Settlement of total loss cases
 Claims resulting from latent defects
 Damage caused by fire
 Proximate cause
 Sub-contract repair work
6.11 Computation of Value  Reducing balance depreciation 6
of Motor Vehicle method
 Straight line depreciation method
6.12 Professional Ethics for  Meaning of Ethics 6
Motor Vehicle Assessors  Universal ethical values/principles
 Conflicts of interest
 Ethical code of conduct for motor
assessors
 Market conduct guidelines for motor
assessors
6.13 Emerging  Emerging issues and trends 2

Page 3 of 4
Code Topics Content Time
(Hours)
Issues and Trends  Challenges posed by emerging issues
and trends
 Ways of coping with challenges
posed by emerging issues and trends
Total 70

Page 4 of 4