A composite insurer will initially pay a motor claim out of premiums accumulated from all of the?

A composite insurer generally offers multiple types of insurance products, including both life and general (non-life) insurance. When it comes to covering claims, the insurer uses its overall accumulated premiums from all the insurance business it conducts, rather than being limited to one specific category of policyholders.

Initially paying a motor claim out of the premiums accumulated from all lines of business—such as life, general, and possibly any other types—provides the composite insurer with a broader financial base. This practice helps ensure that funds are available to cover claims across different product lines, thus promoting financial stability.

It diverges from focusing solely on a specific group, such as only motor policyholders or general policyholders. Understanding that a composite insurer has diverse sources of premium income reinforces the principle that claims can be managed more flexibly and efficiently within the larger financial structure of the insurer.