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JAMB Commerce 1999 Question 22

Question 22

Insurance

A distinction between Comprehensive Insurance and Third Party Insurance is that the latter covers damages

  1. A.caused by the insured vehicle
  2. B.to the insured vehicle
  3. C.caused by the other vehicle
  4. D.to the driver of the insured vehicle.
Show the answer and explanation

Answer: A (caused by the insured vehicle)

Explanation

Third party insurance only pays for damage the insured vehicle causes to other people and their property.