THE INSTITUTE OF FINANCE MANAGEMENT

(IFM)

FACULTY OF INSURANCE AND SOCIAL PROTECTION

BACHELOR OF SCIENCE IN INSURANCE AND RISK MANAGEMENT
MSU 07404: MOTOR INSURANCE
INDIVIDUAL ASSIGNMENT

STREAM D
NAMES REG NO.
ROGERS W. BUZAILE IMC/BIR/18/97306
1. Differentiate Motor insurance covers against Motor Insurance policies

Motor insurance policies is the documents which evidence the contract between
insured (client) and insurer (company) the contract between the parties then motor
insurance policy must avail to the essentials of contract But . Motor insurance covers is
the temporary document that shows the contract between insured and insurer

2. Discuss the section of motor insurance policies with their intent.

A. Act only cover is the cover which is only for the law enforcement the cover fulfill
the requirement provided by provision under cap 169 but it doesn’t provide
protection against liability arising from non-road use and it is used where the owner
is not willing to insurer his/her car. requirement and it cover the following

 Unlimited indemnity for legal liability to third parties for death, bodily injury
and property damage of up to 50 million Tanzania shillings
 Payment of emergency treatment and hospital treatment fees for the injured
third parties
 Legal cost incurred in defending against an action for damage including
claimant costs awarded against the driver/user
B. Third party cover - This policy insures you against claims for bodily injuries or
deaths caused to other persons, as well as loss or damage to third party property
caused by your vehicle. Following are intent of cover

 Liability arising from accident on private properties

 Indemnity for liability of passengers in the vehicle arising from their negligence

 Indemnity to the policyholder’s employer/business partner arising from

vicarious liability while the vehicle is used for business purposes

 Indemnity to legal personal representative of the person indemnified by the

policy in the event of that persons’ death
 C. Third party, fire and theft cover - This policy provides insurance against claims
for third party bodily injury and death, third party property loss or damage, and loss
or damage to your own vehicle due to accidental fire or theft. And the following are
intent of the cover
 fire and allied perils (Explosion and lightning)
 Theft and theft related perils such as attempt to theft

D. Comprehensive cover - This policy provides the widest coverage, i.e. third party
bodily injury and death, third party property loss or damage and loss or damage to
your own vehicle due to accidental fire, theft or an accident.
 It cover all intent from above policy additional to

 Medical expense
 Personal effects
 Personal accident

3. With example, discuss the covers under third party only which are not available
under act only cover

Act only cover is the cover which is only for the law enforcement the cover fulfill the
requirement provided by provision under cap 169 but it doesn’t provide protection
against liability arising from non-road use and it is used where the owner is not willing
to insurer his/her car BUT third part only This policy insures you against claims for
bodily injuries or deaths caused to other persons, as well as loss or damage to third
party property caused by your vehicle.

There for the covers that are available only in third part which are not available at act only are as
following

 Unlimited indemnity for legal liability to third parties for death, bodily injury and property
damage more than 50 million Tanzania shillings
 Example

Mr.juma who insured his car (act only) at jubilee insurance company when he was on the road to
his home after job evening suddenly he Couse the accident and Couse huge loss due to his
negligence after different procedures done by loss assessor the loss was estimated 60 million
Tanzania shillings there for the company reject to pay the loss due to the loss was over negotiated
at the policy which was act only.
 REFERENCE

 motor vehicles insurance (third-party risks) act and subsidiary legislation revised edition
showing the law as at 1 January 2013 authorized by Ln. so/ 1994
 Motor insurance by CHANYA, CS.
 https://www.motor.com/chrome/?brand=CHZN&utm_source=google.com&utm_medium=mat
erial-callout&utm_campaign=search&utm_content=switch-to-chrome-built-for-windows-hide-
annoying-ads&utm_keyword=CVFX
