FAQs Motor Insurance

Do I need to have Insurance?

Yes you do.  However, the only insurance that you need to have is liability insurance, which covers your potential liability to others as owner/user of a motor vehicle as stipulated by law.

Do I need to complete a Proposal Form?

Yes you do.  The Proposal Form is used to obtain information from you about yourself, the vehicle itself, the drivers, and any institution that may have a financial interest in the vehicle.   It gives the insurance company an opportunity to assess the application to determine whether or not to accept the risk, the premium to charge and terms to be imposed (if any).  The Proposal Form forms the basis of the contract between you and your insurer.

Why do I get a Certificate of Insurance?

Under the law, the certificate of insurance is required as proof of the existence of insurance.  If for any reason a certificate of insurance cannot be prepared at the time of paying your premium, a cover note (temporary proof of insurance) will be issued until the certificate of insurance is prepared.  If it is lost, you should advise your insurers immediately.

Am I permitted to use the insurance of the person from whom I purchased my vehicle?

No.  Purchase insurance to cover your newly acquired vehicle.  Once the former own sells the vehicle, his/her financial interest in the vehicle ceases as does his/her insurance cover on the vehicle.

Can I use the same certificate to operate another vehicle?

No.  A certificate of insurance is required for each vehicle insured.

How do I earn a No Claim Discount/Bonus?

No Claim Discount is a mechanism in which your insurance company rewards safe drivers.  The discount is earned on the insurance premium annually if you do not claim on your insurance.  It increases each year you are claim free up to the maximum attainable under your policy.  No claim discount is transferable from one vehicle to another and from one company to another (even if that company is in another country).  To transfer no claim discount from one company to another, an original letter is required from your previous insurer confirming the discount entitlement.  No claim discounts are reduced or disallowed in the event of a claim depending on the type of motor policy.  Some policies have an ‘accident forgiveness’ benefit.

If I lend my vehicle to someone, will it still be insured?

Your insurance certificate will state who is authorised to operate your vehicle.  If it states any person driving with your permission then your insurance is valid if you lend the vehicle to someone provided that person hold a valid driver’s licence.

May I cancel my policy at anytime?

Yes, you may.  Simply advise us in writing and return the certificate of insurance.

What is an Excess?

An excess is the portion of any claim that you will bear out of pocket before your insurance company will pay.  Usually it is a fixed percentage of the sum insured of your vehicle.

Is there a grace period under my motor policy?

No, there is no grace period under your motor policy.  You must ensure that your insurance is current and valid at all time.

If I modify my motor vehicle to boost its performance, will it affect my premium?

Yes.  If you modify your motor vehicle to make it more powerful or faster, you need to inform your insurer.  Such modifications increases the risks associated with your motor vehicle and consequently the premium.  If you fail to inform your insurer, it is not covered under your policy and any claim will not be honoured.

If I fit a new music system, is it covered?

No, it is not covered automatically.  Accessories including a new music system, which were not fitted by the original manufacturer, are not covered.  It is therefore your responsibility to obtain proof of the value of these items and ensure that they are specifically insured.

Why is it important to report all accidents?

Failure to report an accident is a breach of the terms of the policy.  If the other party chooses to pursue a claim on your policy, your rights to protection under the policy may have been forfeited.  It is important to report all accidents and avoid unnecessary problems.