Motor Insurance (CH.2) RISK 112

What is the mandatory coverage required by law in Saudi Arabia?

• Collision coverage

• Liability coverage

• Comprehensive coverage

• Personal injury protection (PIP)

What does Bodily Injury Liability (BIL) cover?

• Damage to the insured's vehicle

• Medical expenses for third parties

• Theft of the insured's vehicle

• Natural disasters

What is the maximum liability limit for coverage under liability insurance in Saudi Arabia?

• SAR 5 million

• SAR 10 million

• SAR 15 million

• SAR 20 million

What does Property Damage Liability (PDL) cover?

• Damage to the insured's vehicle

• Damage to third-party property

• Medical expenses for the insured

• Legal fees for the insured

Which of the following is NOT covered under liability insurance?

• Bodily injury to third parties

• Damage to the insured's vehicle

• Legal defense costs

• Property damage to third parties

What does collision coverage pay for?

• Damage to the insured's vehicle due to theft

• Damage to the insured's vehicle due to an accident

• Medical expenses for third parties

• Natural disasters

What is excluded from collision coverage?

• Damage caused by fire

• Damage caused by hitting a tree

• Damage caused by theft

• Damage caused by a pole

What is the purpose of a deductible in collision or comprehensive coverage?

• To increase the premium

• To reduce the insurer's liability

• To cover the first portion of repair costs

• To exclude certain perils

What does comprehensive coverage protect against?

• Damage caused by collision

• Damage caused by natural disasters

• Medical expenses for the insured

• Legal fees for the insured

Which peril is NOT covered under comprehensive coverage?

• Fire

• Theft

• Mechanical breakdown

• Vandalism