CMFAS CGI Commercial Motor & Fleet Insurance question: carriage of own goods and haulage/hire and reward

CMFAS CGICommercial Motor & Fleet Insurance

How should 'carriage of own goods' and 'haulage/hire and reward' be understood in commercial motor underwriting?

A They are the same use, so a vehicle declared for one may be used for the other
B They differ only in premium rate, so misdeclaring one as the other never affects any claim payment
C They are alternative names for the third-party and comprehensive cover levels
D They are distinct uses that must be declared correctly, since misdeclared use can prejudice cover

Show the answer and explanation

Answer: D. They are distinct uses that must be declared correctly, since misdeclared use can prejudice cover

Carrying the insured's own goods and haulage for hire and reward are distinct usage categories that must be declared accurately, because operating a vehicle outside its stated use can prejudice a claim.

Common mistake

Treating the two usage bases as interchangeable rather than materially different.

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CMFAS CGI Commercial Motor & Fleet Insurance question: carriage of own goods and haulage/hire and reward

Answer: D. They are distinct uses that must be declared correctly, since misdeclared use can prejudice cover

Common mistake

Related CMFAS CGI questions

CMFAS CGI Commercial Motor & Fleet Insurance question: carriage of own goods and haulage/hire and reward

Answer: D. They are distinct uses that must be declared correctly, since misdeclared use can prejudice cover

Common mistake

Related CMFAS CGI questions