Rules and Regulations of Insurance Policy IELTS Reading Answers

Sep 14, 2023

Rules and Regulations of Insurance Policy IELTS Reading Answers is a general reading topic which includes 7 questions. The specified Rules and Regulations of Insurance Policy IELTS Reading Answers topic generates fill-in-the-blanks types of questions. Candidates should read the IELTS Reading passage thoroughly in order to recognize synonyms, identify keywords, and answer the questions below. Candidates can further enhance their reading skills by going through IELTS reading practice papers available on the website. Candidates can use IELTS reading topics like Rules and Regulations of Insurance Policy IELTS Reading Answers to enhance their performance in the reading section.

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Section 1

Read the Passage to Answer the Following Questions

Rules and Regulations of Insurance Policy IELTS Reading Answers

Excess

When you agree to your insurance policy, you will also agree to an excess. The excess is the amount of money you will have to pay before the insurance policy pays for the damages. It is usually between about £500 and £1,000. This only comes into effect in an accident when you are at fault, and if the other driver is at fault you do not have to pay it.

What is insurance?

Car insurance is an agreement to pay an insurance company an annual premium that means they will pay for personal injury and property damage should you be in an accident. It can also mean that the insurance company will pay if your car is stolen, vandalized or destroyed by fire.

Do I have to have insurance?

Car insurance at the basic level is compulsory. If you are found driving without insurance, you can be fined and have your car confiscated and destroyed. This law ensures that everybody is compensated for personal injury and property damage if the accident is not their fault.

Types of car insurance

Fully comprehensive is the insurance that most drivers have and it offers the highest level of protection. It is the most expensive. It pays you if your car is stolen or vandalized and also, if you are involved in an accident. If the accident is your fault, personal injury and property damage are covered for all drivers, passengers and pedestrians.

Third party, fire and theft pays for other people's injuries and damaged property in an accident, but it will not pay for damage to your vehicle. It will also pay if your car is stolen or damaged by fire. This type of insurance has lower premiums and people often have it if their car does not have much value.

Third party is the lowest level insurance you are legally permitted to have. It only covers personal injury and property damage for others. It is suitable for people who don't drive very often or for people who have limited budgets and who are willing to take the risk.

Section 2

Solution and Explanation
Questions 15 - 21
Choose NO MORE THAN TWO WORDS from the text for each answer.

Question 15: If a person pays an ............. to an insurance company, it pays for accident costs.

Answer: Annual Premium
Supporting statement: “...annual premium that means they will pay for personal injury and property damage should you be in an accident…”
Keywords: annual premium, personal injury, accident
Keyword Location: para 2, line 2
Explanation: According to the writer, car insurance is an agreement to pay an insurance company an annual premium that means they will pay for personal injury and property damage should you be in an accident.

Question 16: An excess is the extra amount you have to pay for the cost of the .............

Answer: Damage
Supporting statement: “...amount of money you will have to pay before the insurance policy pays for the damages…”
Keywords: insurance, policy, damages, excess
Keyword Location: para 1, line 2
Explanation: According to the writer, when you agree to your insurance policy, you will also agree to an excess. The excess is the amount of money you will have to pay before the insurance policy pays for the damages.

Question 17: If the accident is not yours ........... you do not have to pay the excess.

Answer: Fault
Supporting statement: “...comes into effect in an accident when you are at fault, and if the other driver is at fault you do not have to pay…”
Keywords: accident, fault
Keyword Location: para 1, line 4
Explanation: According to the writer, excess only comes into effect in an accident when you are at fault, and if the other driver is at fault you do not have to pay it.

Question 18: By law, you must have a ............. of car insurance.

Answer: Basic Level
Supporting statement: “...Car insurance at the basic level is compulsory…”
Keywords: car insurance, basic level
Keyword Location: para 3, line 1
Explanation: According to the writer, car insurance at the basic level is compulsory. If you are found driving without insurance, you can be fined and have your car confiscated and destroyed.

Question 19: Fully comprehensive insurance is ............. because it offers high protection.

Answer: Expensive
Supporting statement: “...most expensive. It pays you if your car is stolen or vandalized…”
Keywords: fully comprehensive insurance, high protection, vandalized, expensive
Keyword Location: para 4, line 2-3
Explanation: According to the writer, Fully comprehensive is the insurance that most drivers have and it offers the highest level of protection. It is the most expensive. It pays you if your car is stolen or vandalized and also, if you are involved in an accident.

Question 20: If you are covered for theft, it means you are paid if your car is .............

Answer: Stolen
Supporting statement: “...It will also pay if your car is stolen…”
Keywords: stolen, theft
Keyword Location: para 5, line 2
Explanation: According to the writer, third party, fire and theft pays for other people's injuries and damaged property in an accident, but it will not pay for damage to your vehicle. It will also pay if your car is stolen or damaged by fire

Question 21: It is bigger ............... to only have third party insurance, but it is much cheaper.

Answer: Risk
Supporting statement: “...suitable for people who don't drive very often or for people who have limited budgets and who are willing to take the risk…”
Keywords: risk, limited budget
Keyword Location: para 6, line 3
Explanation: According to the writer, Third party is the lowest level insurance you are legally permitted to have. It only covers personal injury and property damage for others. It is suitable for people who don't drive very often or for people who have limited budgets and who are willing to take the risk.

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