Motor Insurance Question Paper

Motor Insurance

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2009/2010
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE

BMS 413:
MOTOR INSURANCE (SECOND PAPER)

DATE: Wednesday, 30th December, 2009
TIME: 4.30 p.m. – 6.30 p.m.
------------------------------------------------------------------------------------------------------------
INSTRUCTIONS:
Answer question ONE and any other TWO questions.

Question 1

a)
Briefly explain the role and reasons that led to the establishment of the motor
insurers’
bureau
in
the
UK
(10
marks)
b)
Explain the categories of motor vehicles exempt from mandatory insurance as per
the
Road
Traffic
Act
(10
marks)
c)
Wafula effected a third party only insurance policy for his public service vehicle
(matatu) operation on the Kisumu – Nairobi route. He warranted that the vehicle
would carry 14 passengers at all times. The vehicle was involved in an accident
with 20 passengers on board. Wekesa was held liable for a Kshs 30 million
award, which he passed to his insurer for indemnity. The insurer repudiated the
claim. Giving your reasons, advise Wafula on whether he is entitled to indemnity

(10 marks)

Page 1 of 2

Question 2
a)
Explain the different types of vehicles insured under vehicles of special
construction
category
(10
marks)
b)
Explain the role played by a certificate of insurance in motor insurance contracts

(10 marks)

Question 3
a)
You have been retained by ABC Insurance to give a presentation to their non-life
underwriting staff on business retention strategies at renewal. Prepare a brief
report that would form the basis of your presentation

(10 marks)
b)
Briefly explain the objectives of the COMESA Yellow card in motor insurance

(10 marks)

Question 4
a)
Explain the reasons that have led to cancellation of most of third party sharing
agreements
(10
marks)
b)
Briefly explain the other services offered by the claims department of an
insurance company other than the conventional services

(10 marks)

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Page 2 of 2

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