WAEC Commerce 2006 Question 43

Question 43

Insurance

Which of the following is the main purpose of a third party insurance? To

  1. A.indemnify an injured outsider
  2. B.indemnify the insured
  3. C.protect the vehicle against theft
  4. D.compensate the driver for injuries sustained
Show the answer and explanation

Answer: A (indemnify an injured outsider)

Explanation

Third party insurance compensates other people (third parties) injured or whose property is damaged.