CMFAS CGI Commercial Motor & Fleet Insurance question: compulsory third-party motor insurance regime exists

CMFAS CGICommercial Motor & Fleet Insurance

The compulsory third-party motor insurance regime exists primarily to achieve which outcome?

A Guarantee the business a lower fleet premium when its drivers keep a clean record
B Ensure innocent accident victims are compensated, with a direct claim against the insurer in defined cases
C Fund repairs to the insured's own fleet vehicles after an accident, whoever is at fault
D Pay cargo owners for goods damaged when a vehicle is involved in a road accident

Show the answer and explanation

Answer: B. Ensure innocent accident victims are compensated, with a direct claim against the insurer in defined cases

The regime protects innocent road-accident victims, ensuring they can be compensated even if the responsible motorist cannot pay, and lets injured third parties recover directly against the insurer in defined circumstances.

Common mistake

Reading the compulsory regime as protecting the insured's own assets rather than third-party victims.

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CMFAS CGI Commercial Motor & Fleet Insurance question: compulsory third-party motor insurance regime exists

Answer: B. Ensure innocent accident victims are compensated, with a direct claim against the insurer in defined cases

Common mistake

Related CMFAS CGI questions

CMFAS CGI Commercial Motor & Fleet Insurance question: compulsory third-party motor insurance regime exists

Answer: B. Ensure innocent accident victims are compensated, with a direct claim against the insurer in defined cases

Common mistake

Related CMFAS CGI questions