Motor Insurance Question Paper

Motor Insurance

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2008

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BMS 413: MOTOR INSURANCE

DATE:
Monday 24th November 2008
TIME:
11.00pm-1.00pm

INSTRUCTIONS
Answer Question One and any other TWO Questions
Question 1
a)
Nyamasaria warranted that his Nissan ‘Matatu’ playing the Kisii-Isabania route will only be carrying 14 passengers when proposing for Third Party Only cover. The vehicle was subsequently involved in an accident while having 20 passengers on board. 10 of the passengers perished on the sport and others sustained major injuries. Nyamasaria was sued and he in turn passed the plaint to his insurer. The Insurance Company contended that there was breach of warranty and consequently repudiated the claim. Advise Nyamasai on the position of this claim. (20marks)
b)
Brian had effected a motor insurance policy for his tractor. While ploughing in a farm in Kitale, the tractor accidentally hit and injured a child who was playing in the farm. Brian is seeking your advise on whether he is covered or not, so as to follow up with his insurers. Advise him accordingly. (20marks)

Question 2
a)
Briefly discuss the role of the motor claims department in an Insurance company. (10marks)
b)
Explain the types of motor insurance policies available in the Kenyan market. (20marks)

Question 3
a)
Zamaka is a new insurance company venturing in commercial vehicle underwriting. Briefly explain to the management the main rating considerations used in evaluating the risk for goods carrying vehicles. (10marks)
b)
Explain the institutions that are exempt from mandatory motor insurance in
Kenya. (10marks)

Question 4
a)
John is employed by Waketu enterprises. Due to the nature of duties, he works in shifts and is picked and dropped by the company bus. One day while in the bus to work, they were involved in an accident and John suffered severe injury. Supporting your recommendation, advise him on which policy is liable to pay. (10marks)
b)
Discuss the details contained on a motor vehicle insurance certificate in Kenya. (10marks)

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