For Example, A Car Manufacturer Would Insure Against The Possibility Of Accidents
For example, a car manufacturer would insure against the possibility of accidents resulting from a design fault or shoddy workmanship. Motor Insurance / Car Insurance: Motor insurance, which comes under all three categories of accident and liability insurance, makes up a large percentage of the business of all composite insurance companies.
There is a vast amount of premium paid to insurance companies, as the law requires all motorists to have third - party liability insurance. This does not provide personal cover for the driver but does cover payment to innocent parties for injuries resulting from road accidents.
However, most motorists take out further insurance, such as a comprehensive policy, which provides cover against fire and theft, and may include cover against personal accident. The premium rates are calculated by considering the type of vehicle, the usage (business or personal), the geographical area in which it will be used and the people insured to drive the car. Other important factors are the age, driving experience, occupation and past accident record of the driver.