M94 Motor insurance

At the end of this training program, candidates should be able to demonstrate an understanding of the different types of motor risk and the compulsory insurance requirements.

Target Audience:

candidate who has knowledge of the fundamental principles of insurance as covered in IF1 Insurance, legal and regulatory or equivalent examinations

Objectives:

At the end of this unit, candidates should be able to:

  • Understand the nature of motor risk and the main factors that impact on it.
  • Understand the scope of cover provided by motor policies.
  • Understand the main practices of motor insurance.
  • Understand risk perception, evaluation and underwriting of motor insurance.
  • Understand the claims considerations and procedures of motor insurance.

Assessment Strategy:

Assessment Strategy:

  • Pre and Post training test to measure knowledge and learning levels
  • Engage trainees in exercises and group activities
  • Evaluation form to be filled by trainees

Method of assessment:

Mixed assessment consisting of two components, both of which must be passed. One component is a coursework assignment and one is a multiple choice question (MCQ) examination. The details are:

  • An online coursework assignment using RevisionMate consisting of 10 questions which sequentially follow the learning outcomes. This must be successfully completed within 6 months of enrolment; and
  • An MCQ exam consisting of 50 MCQs. 1 hour is allowed for this exam. This exam must be successfully passed within 18 months of enrolment.

Modula 1: Understand the nature of motor risk and the main factors that impact on it
1.1 Explain the different types of motor risk, including their frequency and severity.
1.2 Outline the legislation, including the Road Traffic Acts, which aims to control risk.
1.3 Explain Part VI of the Road Traffic Act focussing on the effects of compulsory insurance on the motorist and insurers.
1.4 Describe the role and functions of the Motor Insurers’ Bureau (MIB) including the MIB agreements.
1.5 Describe the incidence and consequences of uninsured driving and the measures taken to combat this.

Modula 2: Understand the scope of cover provided by motor policies
2.1 Explain indemnity and the main types of cover in relation to the motor car policy including:

  • Cover for third party liabilities.
  • Loss or damage to the insured vehicle.
  • Other benefits such as personal accident and personal effects.
  • Minimum EU cover and foreign use extensions.
  • Uninsured loss recovery, legal expenses and breakdown assistance.
  • Principal policy conditions, exclusions and the right of recovery clause.

2.2 Distinguish between the cover given under the motor car policy and the following:

  • Motorcycles.
  • Goods carrying commercial vehicles.
  • Hire cars.
  • Passenger carrying commercial vehicles.
  • Special types.
  • Agricultural and forestry vehicles.
  • Motor trade.
  • Motor fleet.

Modula 3: Understand the main practices of motor insurance
3.1 Explain the new business process.
3.2 Explain mid–term policy alterations.
3.3 Describe the renewal process, lapses and cancellations.
3.4 Explain issues arising from the delivery and surrender of certificates.
3.5 Explain the process for handling voidable policies and the options available to insurers.

Modula 4: Understand risk perception, evaluation and underwriting of motor insurance
4.1 Discuss motor underwriting strategy and objectives distinguishing between account level and case underwriting.
4.2 Explain an insurer’s risk appetite, standard rating models and pricing methods.
4.3 Discuss key risk assessment approaches and underwriting options for motor business in respect of vehicles, drivers and use.
4.4 Discuss proposal evaluation including legal considerations and validation methods.
4.5 Explain the application of loadings and discounts, including no claim discounts.
4.6 Explain factors affecting loss ratio, expense ratio and operating ratio.
4.7 Describe reinsurance as applied to motor insurance.
4.8 Describe the methods of underwriting and rating for:

  • Motor cars.
  • Motorcycles.
  • Goods carrying commercial vehicles.
  • Hire cars.
  • Passenger carrying commercial vehicles.
  • Special types.
  • Agricultural and forestry vehicles.
  • Motor fleet risks, contingent liability and occasional business use.

4.9 Explain fleet risk management and its benefits.
4.10 Discuss the key issues in underwriting at renewal, mid-term changes in risk and policy variations.
4.11 Explain the importance of liaison between claims and underwriting functions.

Modula 5: Understand the claims considerations and procedures of motor insurance
5.1 Discuss motor claims strategy and objectives.
5.2 Explain the validation, evaluation and settlement criteria in handling motor claims including:

  • Counter fraud measures including the use of databases.
  • Specific claims handling procedures applicable to private motor, commercial motor and motor trade insurance.
  • Procedures to assess and resolve bodily injury, accidental damage, fire and theft and third party losses including the classification of damages.

5.3 Explain the role of market organisations and law enforcement agencies in the claims process including the practical application of the MIB Agreements.

5.4 Explain the role of motor engineers, approved repairers and others involved in own vehicle and third party property repairs and replacements.
5.5 Discuss dispute resolution procedures by reference to arbitration clauses, internal complaint processes, the Financial Ombudsman Service and Alternative Dispute Resolution.

Experience Level:
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Code: INS1066
Language: English
Duration: 5 Day(s)