This term has paricular relevance to motor insurance. Any person driving a motor vehicle on public highways must have a current insurance policy that will cover any damage sustained by a third party, irrespective of negligence. This compulsory element in motor insurance was introduced in the Road Traffic Act 1930. Drivers of vehicles may, however. wish to cover more than the minimum legal requirements as regards damage. Policies available are many and of different kinds. varying from one company to another according to the insurer's assessment of risk. The greatest insurance cover available is known as comprehensive insurance. This entitles the owner or driver to recompense for all known possible losses from accidents incurred whilst the car is in his possession or being driven by someone else with the owner's permission. Most insurance companiesattach a no-claims bonus which, by affording a substantial deduction from the annual premium payable, discourages the person insured from making minor claims.
The term 'comprehensive' insurance is sometimes loosely applied to any insurance policy taken out on real or personal propcrty which affords protection against all known possible hazards.
|Reference: The Penguin Business Dictionary, 3rd edt.|