Final answer:
A Personal Auto Policy (PAP) would likely provide coverage for both damages and injuries in the scenario described, subject to policy terms and conditions. Option (D) is correct.
Step-by-step explanation:
In the scenario of an insured towing a rented trailer, where the trailer comes loose, causing damage to property and injuries to people, a Personal Auto Policy (PAP) would likely respond by providing coverage for both damages and injuries, subject to policy terms and conditions. This means that the PAP may cover the damages to the trailer as well as the injuries to the people involved, depending on the specific terms and conditions of the policy.
Tow truck insurance is a specialized form of truck insurance that is designed for towing companies keeping in mind the needs of tow truck operators. The main coverage areas that tow truck policies cover are Liability insurance which includes property damage and bodily injury cover, and medical payments.
In the event of the vehicle being disabled because of loss or damage covered under this policy and not being able to move on its power, the Insurer will bear the reasonable cost of removal (over and above the limits as provided by the India Motor Tariff) to the nearest repairer and redelivery to the Insured.