No person owns a vehicle of any kind unless an agreement to insure it has been entered into with an insurance company, in which the insurance company represents the first party, while the insured is the second. Motor vehicle insurance is the most common type of insurance in the world and the types of insurance are divided into three types: compulsory insurance, third party insurance and insurance AND each has its own conditions and advantages, and in the following report We explain the vehicle insurance conditions.
Types of vehicle insurance
Worldwide, vehicle insurance is divided into three modalities: compulsory motor insurance, third party insurance or what is known as third party property damage insurance, and supplementary insurance, and we will briefly explain them below.
- Compulsory insurance is compulsory insurance by law and covers bodily harm to those injured by traffic accidents, with the company being responsible for compensating those injured inside the insured vehicle, as well as injuries caused by the vehicle to the pedestrians on the road, and the liability of the insurance company for bodily injury is in accordance with the insurance law in force for which It will be responsible for (providing medical treatment to the injured until his recovery and stabilization of his illness condition, compensate the injured for all financial obligations incurred as a result of the accident, to compensate the injured person for the loss of temporary and permanent income that he may suffer as a result of the injury, to compensate the injured person for the psychological damage suffered as a result of the injury.
- Property damage insurance to third parties, and it is an optional insurance that covers damage to physical property, be it automobiles, public property or private property due to a traffic accident, and the compensation is up to the maximum value of the specified commitment limits in the insurance policy, and the premium is calculated according to the rate issued by the Insurance Supervisory Authority.
- Complementary insurance, which is an optional insurance that covers damage to the bodywork of the insured vehicle, whether they are total or partial losses derived from traffic accidents, overturning, ignition or collision. The maximum value of compensation is the value of the vehicle authorized and registered in the insurance policy, and the premium is calculated as a percentage of The value of the vehicle is subject to the insurance, and this coverage is generally made for new and new cars.
Vehicle insurance conditions
Vehicle insurance conditions vary from country to country, and the insured must be careful before choosing the insurance company to insure their vehicle. You must first ensure the following: -
- The company must have a valid license to conduct business, issued by the Department of Insurance Supervision.
- Ensure that the company can meet its financial obligations and that its financial position is sound
- Enjoy the necessary reinsurance coverage
- That the company has branches throughout the country and has powers to deal with accidents, no matter where they occur.
How is the car insurance rate calculated?
Vehicle insurance rates are calculated based on the type of insurance. In mandatory insurance and third party insurance, the insurance premium for each vehicle for this type of insurance is determined based on various data. Private vehicles: the premium is determined based on the size of the engine (engine power), while vehicles The commercial premium is determined in it based on the type of vehicle license and its load, while the premium in public taxis It is determined based on the number of passengers in the vehicle and whether one or two drivers have been identified to drive the vehicle. For private and public buses, the premium is determined based on the number of passengers and divided into In various segments and in rental cars, the premium is determined based on the engine power of private cars or the load of commercial vehicles, taking into account the addition of an additional premium over the normal rate, and heavy equipment is characterized by the presence of its own rate.
Regarding the supplementary insurance rate, the premium is calculated based on a certain percentage of the insurance amount (the value of the car) within a price table determined according to principles that correspond to the magnitude of the risk.
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