LEARNERS ASSESSMENT PACK

Demonstrate Knowledge & Understanding

Of Domestic Motor Insurance

(10368)

NAME:

ORGANISATION:

COURSE NO:

OR

RPL:

Unit Standard SAQA 10368 – Demonstrate Knowledge & Understanding of Domestic Motor Insurance

INDEX

Page No

Instructions to Learner1

Assignment: Assessment Questionnaire4

Declaration of Authenticity16

Version 1 – March 20041

Unit Standard SAQA 10368 – Demonstrate Knowledge & Understanding of Domestic Motor Insurance

INSTRUCTIONS TO LEARNER

Purpose of the Assessment:

/ The purpose of assessment against this unit standard is to:
  1. Award credits on the NQF to learners who are able to:
-Explain domestic motor insurance
-Describe the insurance available for trailers and caravans
-Indicate how domestic insurance applies to motorcycles
-Explain liability with regards to domestic motor insurance
-Describe the additional benefits available under comprehensive cover.
  1. FAIS Compliance:
This unit standard will provide you with 3 credits towards the skills programme created at level 4, and aimed at satisfying the requirements for Short Term Insurance – Personal Lines.
/

This unit standard is registered on the National Qualifications Framework as follows:

Field: / Finance, Commerce and Management Studies
Sub-Field: / Finance, Economics and Accounting
Number: / 10368
Level: / 4
Credits: / 3

Learning Assumptions:

/ The entry requirements for this unit standard is set as open.
However learners should be competent in communication, mathematical literacy and financial literacy at Level 3.
No other assessment is required prior to the assessment against this unit standard.

Assessment Methods:

/ The following assessment method will be used for this assessment:
-Written/or oral questioning

Assessment Process:

/ Step 1 – Planning for the Assessment
-You will need to complete an assessment plan together with your assessor/line supervisor
-Your assessor will prepare you for your assessment and complete the assessment preparation plan with you
-Ensure you are familiar with what is expected of you for this assessment and the unit standard
Step 2 – Completing the Assessment
-This assessment will be by means of an assessment questionnaire detailed on page 4.
-Hand in the questionnaire, fully completed as per the instructions by the date agreed on the assessment plan
-Your assessor may ask you additional questions
-Your assessor will record the evidence that you have submitted onto the assessment guide
-Based on this evidence, the assessor will make a judgement of 'Competent' or 'Not Yet Competent' or 'Not Assessed' for each assessment criteria and overall for the total unit standard
Step 3 – After the Assessment
-If 'Not Assessed' you and the assessor will agree the criteria not assessed and arrange an additional assessment date
-If 'Not Yet Competent' you and the assessor will identify why this judgement has been made and the action/s necessary. A re-assessment date should also be agreed upon.
-All decisions will be recorded on the assessment guide, which all parties should sign
-You will only be declared 'Competent' if you have provided sufficient and valid evidence against all the assessment criteria and specific outcomes of this unit standard
-After declaration of competence, your assessment is subject to the internal moderation process
-Once this is complete, your results will be entered onto SAQA's NLRD – National Learner Record Database

Special Conditions:

/ -The declaration of authenticity on page 16 must be signed by your manager, your assessor and yourself to certify that the evidence is authentic and that this has been applied in your workplace
-Feedback on your assessment will be given to you by your Line Manager/Assessor

Resources:

/ The following additional/supporting resources will help you when preparing for your assessment:
Resource
/ Reference / Available From

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE

NAME: ______DATE: ______

DEPARTMENT: ______

For office use
QUESTION 1:
List four types of vehicles that can be covered under a domestic motor policy
QUESTION 2:
Describe which licence codes are required to drive the vehicles which can be covered.
QUESTION 3:
List two types of vehicles that may not be covered under a domestic motor policy.
QUESTION 4:
What is the maximum mass of any vehicle allowable, which can be covered under a domestic motor policy?
For office use
QUESTION 5:
Describe the extent of cover provided under Comprehensive insurance, with reference to the Insured’s own vehicles and third party property and vehicles.
QUESTION 6:
Describe the cover given in respect of Third Party, Fire and Theft cover, with reference to the reduced cover for the Insured’s own vehicles.
QUESTION 7:
Describe the cover under Third Party Only cover, with reference to the exclusion of all damage for the Insured’s own vehicles.
QUESTION 8:
Describe which of the above covers has the highest premium, and which has the lowest premium, and why.
For office use
QUESTION 9:
Explain why business use cover can be given under a private domestic policy, and how it will affect the premium.
QUESTION 10:
Describe the workings of a no claims bonus structure in respect of an Insured who has an accident during the insurance period.
QUESTION 11:
Describe how no-claim bonuses are built by the Insured.
QUESTION 12:
Describe how no-claim bonuses may be transferred from one vehicle to another.
For office use
QUESTION 13:
Select the correct answer:
Insurers offer premium reduction in respect of older drivers, because:
  1. Older drivers are more likely to travel more slowly
  2. Older drivers are less likely to speed
  3. Older drivers have more experience in driving under different conditions
  4. Older drivers will need a lower premium because they may need extra money

QUESTION 14:
Describe how excess values are accumulated in respect of accidents arising to vehicles driven by persons under the age of 21, who have had a licence for less than two years, and whose no claim bonus is registered as 0 (zero):
QUESTION 15:
Select the correct answer:
Which of the following areas in South Africa is likely to attract the highest motor premium:
a)Johannesburg
b)Balfour
c)East London
d)Beit Bridge
For office use
QUESTION 16:
Explain why premium rates for major centres are higher than for smaller towns and villages:
QUESTION 17:
Explain why certain insurers offer cover in certain territories and others do not:
QUESTION 18:
List at least four territories in which cover is granted which are common to all polices under domestic motor insurance:
QUESTION 19:
Explain why insurers would not wish to grant cover in certain territories:
QUESTION 20:
Explain what a trailer or caravan is, with specific reference to self-propulsion and towing.
For office use
QUESTION 21:
What are the cover options for caravans and trailers?

QUESTION 22:

Select the correct answer:

An Insured has covered his trailer comprehensively. In the event of an accident while being towed, the trailer would be covered for:
a)Fire
b)Lightning
c)Theft
d)Accident
e)All of these
QUESTION 23:
Describe the cover available in respect of third party damage, arising when a trailer or caravan is being towed.
QUESTION 24:
Describe the types of vehicles that are defined as ‘motorcycles’, and list the types that may be insured under a domestic motor policy.
For office use
QUESTION 25:
What are the cover options for motorcycles?
QUESTION 26:
Describe the extent of damage covered in respect of the motorcycle itself.
QUESTION 27:
Describe the extent of cover given in respect of third party liability, with particular reference to death, injury and property damage.
QUESTION 28:
Give two reasons why liability cover is compulsory on all three cover options.
QUESTION 29:
Describe the cover given, in respect of negligence on the part of the Insured or his family.
For office use
QUESTION 30:
Describe how the term ‘third party’ is defined in the policy.
QUESTION 31:
Why are limitations placed on indemnity in respect of third party damages arising from fire and explosion?
QUESTION 32:
Describe how insurers may be affected by claims for damages where no limit of liability exists.
QUESTION 33:
Name three additional cover options that are available and briefly describe each one.
QUESTION 34:
Compare the cover given in respect of the above extensions between own organisation and competitor organisation.
For office use
QUESTION 35:
Name 3 underwriting criteria which would influence a clients premium.
QUESTION 36:
Scenario

DOMESTIC MOTOR

The insured buys cover for three cars:
Alfa Romeo 2.0l, R 125 000
Jaguar XK R 395 000
Mercedes Benz 320 R 270 000
Isuzu 280 SD 4X4 R 200 000 (all comprehensive and business use)
Honda 125 c.c. Motorcycle (third party, fire & theft) – R 15 000.
The excess is R 1 000.
The insured also covers his daughter’s private vehicle for
R 25 000, private use only.
a)The Insured is driving the Isuzu when he drives into the rear of a third party who has stopped illegally in the middle of the motorway. The damages are R 20 000 Own Damage and
R 30 000 Third Party damage. Which amounts will the policy pay, if any?
b)The motorcycle breaks down, and is placed on in the Isuzu
4X4 to go for repairs. On the way they have an accident and
the motorcycle catches fire and is burnt out. Will the policy pay
this loss?
For office use
c)The Insured’s son has a few drinks and then causes an accident, when he drives into a third party’s wall. Damage to the Insured’s car is R 20 000 and the third party’s wall is
R 1 000. The son is 19. Which amounts will the policy pay, and why, or why not?
d)The Insured’s daughter picks up a friend and then crashes. The friend is badly injured, and sues the Insured for R 50 000. Which extension of the policy will pay this loss, if any?
e)A Third party drives into the side of the Insured’s daughter’s car, while she is delivering goods to her customers. The damage to the daughter’s car is R 18 999. Will the policy pay for this loss?
f)The Alfa is written off in a fire at the Insured’s office. The Insured then discovers that the actual value of the car is R 140 000. How will this affect the claim’s settlement?
g)The Insured has an accident in the Jaguar, while the family is away on holiday. He hires the same type of vehicle for the rest of his month away at a cost of R 1 500 per day. Will the policy allow him to do this? If not, why not?
For office use
h)While driving the Mercedes on business in Mozambique, the Insured drives over a pig in a farmyard, after he crashes through the fence. The owner of the pig sues for a sum of R 2 000, and the police charge the Insured with negligence, and fine him R 10 000. Which of these amounts, if any, will be covered by the policy?
i)The Insured buys a new car (BMW 523 (I) R 200 000) one week before renewal. He writes to insurers, asking them to place the car on cover, but the letter only reaches insurers after renewal. In the interim, the vehicle is stolen. Can the Insured expect to receive policy benefits in respect of this loss?
j)The Insured is on his way to have his vehicle inspected at insurers’ request, when he is hijacked. He still owes R 27 000 on the vehicle to the bank. How will the policy deal with this additional amount owed?
ASSESSORS COMMENTS:
ASSESSOR SIGNATURE: DATE:

DECLARATION OF AUTHENTICITY

We the undersigned hereby declare that ______has completed all of the specified requirements for assessment against this unit standard.

SIGNED:______

LEARNER:______

DESIGNATION:______

DATE:______

SIGNED:______

LINE SUPERVISOR:______

DESIGNATION:______

DATE:______

SIGNED:______

ASSESSOR:______

DESIGNATION:______

DATE:______

Version 1 – March 20041