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INSURANCE
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COVERAGE
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On the road
The compulsory motor insurance law imposes on all car drivers to have at least third-party insurance or else the ISF (Internal Security Forces) can seize the vehicle.
While it may be heartbreaking to see an uninsured vehicle worth thousands of dollars reduced to a heap of worthless mangled metal after an accident, the real value of motor insurance is less in the vehicle itself than in the personal injury claims that can arise from an accident.
So motor insurance is divided into two basic categories:
Third party liability, which covers injury claims from people as well as material damage to the other vehicle involved,
All Risks, which can cover virtually any eventuality.
The devil is however in the detail. Neither kind of policy may cover as much as motorists believe, since much of the coverage in motoring insurance is included in the add-ons at an extra charge.
Third party
liability
A motorist who is at fault in an accident, either wholly or partly, is liable to pay the other motorist(s) involved for vehicle repair and personal injury, whether in compensation claims or perhaps even medical treatment.
Third party liability (TPL) insurance indemnifies a driver against these claims but does not cover damage to the insured's vehicle. It is the most basic form of motor insurance and usually the legal minimum requirement in countries where having motor insurance is compulsory.
Insurance companies stipulate a maximum level in their liability either for personal claims or damage to the other vehicle(s). The limits can be as low as $25,000 and as high as $1,000,000.
However, in cases where unlimited liability for bodily injury is agreed, there is usually a limit for material damage. Material damage may cover not only other vehicles, but also, for example, a house or a building damaged after an accident. Bodily injury claims may come from anyone (save some or all of those in the insured vehicle - see below) hurt as a result of the accident, whether pedestrians or occupants of other vehicles involved.
The annual costs, or premium, for TPL ranges between $70 and $150, with the level being fixed by many factors, such as the horse-power of the vehicle, coverage limit, and in some cases, depending on the insurance company, the model of the vehicle. The rule of thumb is that the bigger the engine and the sportier the car the more expensive the insurance, even TPL. The most common horsepower brackets are up to 15, 16 to 24, and above 24. Similarly, the higher the coverage limit the higher the premium for vehicles of the same horsepower.
Limitations
Some insurance companies apply a deductible from claims of around $50 if the driver is under 21 years old or if the applicant has held a driving license for less than one year.
While there may be stipulations regarding the age of the driver, there are, in the main, no such restrictions concerning the age of the vehicle, at least not for TPL coverage. Since repairs to the insured vehicle are not a factor, no account is taken of its condition or that restoring it to roadworthy condition may well be more expensive than an equivalent car because of deterioration caused through age. Nor is the increased likelihood of an old car being involved in an accident solely by virtue of its age and declining condition taken into consideration.
There is no inspection of the vehicle involved in taking out TPL cover. To apply for coverage involves only completing an application form and providing a photocopy of the vehicle's registration certificate. The application usually requires details about the applicant, car details, and the type of use of the car. Standard TPL insurance covers use for domestic and pleasure purposes, not for work reasons, which is available but usually more expensive.
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Exclusions
As important as the items that are covered in basic TPL insurance are the items that are excluded. These can be crucial when a claim arises. Insurance companies will usually not indemnify the insured for bodily injury or material damage arising, directly or indirectly, out of situations such as:
An intentional or fraudulent act by the insured car
A malicious act, such as tampering with the brakes, done to the insured vehicle by any of the 'related' people
Driving the insured vehicle against the flow of traffic (so driving the wrong way down a one-way street invalidates the insurance)
Engaging in a rally or race of any kind
Driving without a valid license
Carrying more passengers than the allotted number of seats
Towing another vehicle or being towed or transported by one
Driving under the influence of alcohol or drugs.
Some of those exclusions can be covered by paying an additional premium, save those, of course, that involve breaking the law.
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Additional services
Many insurance companies have contracts with towing companies to provide help in the event of an accident, or even a simple breakdown. This service may be complimentary or subject to an additional premium .
In TPL cover there is no provision for replacement of the insured vehicle while it is being repaired. This service is provided only to all risk policyholders. It is also possible within TPL insurance to cover bodily injury for the occupants of the insured vehicle, subject to an extra premium. This addition increases the premium while still keeping it lower than the price of an all risk policy.
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All risk
insurance
Also known as comprehensive, all risk insurance policy covers all the provisions of TPL (including most of the add-ons), as well as damage to the insured vehicle itself.
The damage may be caused either in an accident, or perhaps by fire, or maybe vandalism. As ever, it is important to check what circumstances are covered and what are not.
The term 'own damage' is commonly used to refer to the material damage caused to the insured vehicle as a result of an accident. All risk coverage also indemnifies the insured for damage to the insured vehicle arising out of fire.
Theft also figures in most all risk insurance although again it is important to check what is covered and what is not. The most common coverage of theft indemnifies the insured for loss or damage as the result of theft or attempted theft by forcible means.
Partial theft - i.e/ a bit of the car, such as the radio being stolen - is usually excluded from this general theft coverage. Hold ups by latterday highwaymen are also usually excluded from standard all risk policies, although cover can be obtained for an extra premium.
Premium
range
The premium for all risk insurance is necessarily much higher than that for TPL since the company is covering many more risks. It is calculated differently than the third party premium, which is a flat fee within certain brackets. All risk premium is a percentage of the value of the car at the time of taking out the insurance, and the percentage varies depending on the age of the car, and in some cases the type of the car. The percentage can be reduced if the policyholder is willing to bear a part of the bill for each and every accident that occurs. The sum of money borne by the insured is called a deductible.
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Limitations
The same limitations applicable for the age of the driver in TPL are also true in all risk. Some insurance companies apply a deductible of around $50 if the driver is less than 21 years old or if the insured has held a driving license for less than one year. Neither youth nor inexperience is seen as a virtue by the issuers of motor policies. Since the company will be covering damage to the insured vehicle itself, its age is definitely of interest to them, unlike the case for TPL. Insurance companies generally do not agree to an all risk insurance policy for a vehicle that is more than 10 years old. A new car doesn't need to be inspected by the insurance company, save perhaps to ensure that it exists at all. This prevents issuing cover to a vehicle that has already been totally destroyed but for which the registration document still exists. In the case of a used car, the applicant for all risk insurance may be asked to make the vehicle available for a mechanical inspection. The result of that may be a determining factor in the level of the premium since insurance companies do not want to cover cars already in need of repair. The better the vehicle condition the lower the risk of this, and the lower the premium.
The application process for all risk insurance coverage is similar to that for TPL - fill in a form and provide a copy of the car registration document. A limitation not present in TPL is the minimum premium. Since the coverage is more comprehensive and inclusive of several factors, insurance companies usually set a minimum premium ranging between $350 and $500. And to include theft coverage it is necessary not only to have an approved burglar alarm fitted, but also to affirm that it was set at the time the vehicle was stolen.
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Exclusions
The exclusions under TPL are also applicable in the case of all risk. There are, however, some extra categories. The insurance company will usually not indemnify the insured for material damage arising, directly or indirectly, out of situations such as:
A manufacturing defect, of wear and tear, of any electrical or mechanical failure or evident lack of maintenance;
Theft or attempted theft as a result of a hold-up;
Airbags, and headlight wipers (sometimes subject to be added with additional premium)
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Deductibles
The term deductible is common in many types of insurance. In brief, a deductible is paid by the insured toward the total cost of a claim. Thus, in a $700 bill, a policyholder who agreed to a $300 deductible would pay that amount toward the cost, with the insurance company paying out the remaining $400. The practise was introduced to prevent a series of small claims, which cumulatively could become very expensive for the insurance companies. In return for bearing some of the risk themselves, policyholders are offered a lower premium. All risk insurance policies generally come with a deductible, which ranges between $50 and $300, the most common being $100 and $250.
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Additional
services
Like TPL policies, all risk insurance usually embraces a prearranged contract with a towing company to assist the insured in the case of an accident or a breakdown. This service may be complimentary or subject to an additional premium of around $10. The majority of all risk insurance policies also offer a car replacement service up to a limited number of days while the insured vehicle is being repaired. Again like TPL, these policies can be extended to provide cover while driving in Syria.
All insurance companies offer the option of covering bodily injury to driver and related passengers but it should not be automatically assumed that this is part of an all risk policy. Where it is an extra, the additional premium is in the range of $15 to $30. Cover against a hold up - excluded from regular theft coverage under all risk - can be added at an extra cost, which varies from one company to another. Also excluded from normal theft coverage is partial theft, meaning theft of parts or accessories. Partial theft can also be included and is subject to an additional premium.
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How
to make a claim
In case of an accident, it is crucial to follow the instructions written on your motor policy, otherwise a claim may be rejected. Usually, there is a list of claim officers, also known as traffic experts, attached to the policy.
First, you should telephone the traffic expert appointed to the geographic location of the accident. Don't leave the scene of the accident or move any of the vehicles involved before the traffic expert arrives and completes an inspection. In the absence of an expert's report, deductibles will be charged, usually between $50 and $200 even if they do not form part of the original terms of the policy.
Next, call the insurance company as soon as possible and provide them with your policy number, the driver's name at the time of the accident,
and the exact location of the accident. There is usually an accident declaration form provided with the policy. This form should be filled
in and delivered to the insurance company's office generally no later than 72 hours after the accident. Details regarding the time, exact
location, circumstances of the accident, as well as the nature of material damage to your vehicle and to the third party's vehicle are
required in the form, as well as any bodily injury. In addition, the form also would ask for your policy number and the identity of the third
party and any insurance policy held. If the insurance company also covers material damage to your vehicle, you must not get it repaired before
receiving the company's official approval and assessment of damages. Without these, you may have to pay the repair bill yourself, even if you do have all risk insurance.
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