Vehicle insurance & Transportation insurance

Vehicle insurance & Transportation insurance

Vehicle insurance:

The most common type of insurance in the world. The types of vehicle insurance applied in Palestine include:

1- The compulsory vehicle insurance: It is a compulsory insurance pursuant to the law and it binds everybody who owns a vehicle moving on the road. This type of insurance covers the physical damages caused to the injured as a result of road traffic accidents according to which the company shall be responsible for the compensation of the injured persons inside the insured vehicle and also for the injures caused to the pedestrians on the roads regardless of any error of the driver.

The responsibility of the insurance company for the physical injuries according to the law has no specified value. The company is responsible for:

  • Providing medical treatment for the injured until he is fully recovered and his health condition becomes stable.
  • Compensation of the injured for all financial obligations which he suffered as a result of the accident.
  • Compensation of the injured for the temporary and permanent loss of income resulting from the injury.
  • Compensation of the injured for the psychological damages resulting from the accident.
  • Any other responsibilities provided for by the law.

1- Insurance responsibility towards a third party (the third party insurance): The word “other” refers to third party. This type of insurance covers the responsibility of the injured or the driver of the insured vehicle for the material damages caused by the other vehicles (third party).

2- Supplemental insurance (which includes the vehicle body):

This type of insurance covers the damages caused to the vehicle body as a result of a road traffic accident. This type of insurance completes the coverage of the compulsory insurance and the third party insurance.

Car insurance rate:

Rates of Compulsory insurance and the third party insurance:

The insurance premium for each vehicle of each type of insurance is determined in accordance to the following data:

1- Private vehicles: The premium here is determined depending on the size of the motor (horse power) and it is divided into several sections.

2- Commercial vehicles: The premium in this case is determined depending on the type of the license of the vehicle and its load, and it is divided in several sections.

3- Public taxi cars: The premium here is determined depending on the number of passengers in the vehicle and if one driver or two drivers are assigned to drive the vehicle.

4- Private and public buses: The premium in this case is determined depending on the number of passengers and it is divided into several sections.

5- Rental cars: The premium here is determined based on the horse power of the private cars and the load of the commercial vehicles, while taking into consideration adding an additional premium to the regular rate, and  It is divided into several sections.

6- Heavy equipment: Tractors, bulldozers, road rollers etc... They have their own rates.

Supplemental insurance tariff: The premium is calculated on a certain percentage of the insurance amount (value of the vehicle) within a price schedule determined in accordance with bases which agree with the size of the risk.  

Insurance certificate or the policy schedule:

The insurance certificate includes the following data:

  • Name of the insured, his address and ID card number
  • Insured vehicle data
  • The beginning and end of the insurance
  • Agreed premium
  • Type of coverage (Compulsory, third party, supplemental).
  • Insurance amounts, liability limits and the deductible of the accident for each type of insurance coverage.
  • Bank stamp which is necessary because it determines the time, the insurance came in to force.
  • Some of the conditions, determinants, and exceptions agreed upon.

General guidelines:

Prior to choosing an insurance company which will be entrusted with the insurance of your vehicle, you must make sure of the following:

  • The company must have a valid license to practice the business issued by the Insurance Supervision Department.
  • The company must be able to abide by its financial obligations and enjoys a sound financial position.
  • The company must have the required re-insurance coverage or companies which are financially capable to abide by their obligations.
  • The company must have branches all over the country and has the powers to deal with the accidents regardless of the place of their occurrence.

 

Transportation insurance:

1- Road transportation: The coverage includes the coverage of the transportation of goods by land against risks of fire, the overturn of the vehicle and the collision of the vehicle.

2- Sea and air: The coverage includes all the shipments from all over the world across the Israeli ports and airports to various sites in Palestine.

3- Marine insurance: This type of insurance is considered one of the oldest types of insurance practiced by the people. This type of insurance includes:

  • MARINE HULL INSURANCE
  • Hull
  • Insurance of the liability resulting from them
  •  MARINE CARGO INSURANCE.
  • Which means the transportation of goods by sea, air and land.
  • Insurance of the transportation of goods by road.
  • Insurance of the transported goods.