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NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Insurance & Risk Management
Internal Assignment Applicable
for June 2024 Examination
Assignment Marks: 30
1
Anita is self employed. She is thirty
one years old, and is a fitness freak. She looks upon health insurance policies
as useless annual drain on people’s monetary resources. Confident that she will
remain fit and healthy in the foreseeable future, she has decided not to spend
yearly sums on buying a health insurance policy. Do you feel that she is doing
the right thing? If not, suggest suitable types of health insurance policies
that she can consider. (10 Marks)
Answer: While Anita's confidence in her
current health and fitness is understandable, it's important to recognize that
unforeseen medical emergencies or health issues can arise unexpectedly,
regardless of age or lifestyle. Therefore, opting out of health insurance
entirely may not be the most prudent decision. Here's why Anita should
reconsider her stance:
- Protection against Financial Risk: Health insurance
provides financial protection against the high costs of medical treatment,
hospitalization, and other healthcare expenses. Without insurance, Anita
may face significant financial strain if she encounters a serious illness
or injury that requires medical intervention.
- Preventive Care and Regular Check-ups: Even for
someone who prioritizes fitness and wellness, preventive care and regular
health check-ups are essential for early detection and management of
potential health issues. Health insurance can cover the costs of
preventive services, screenings, and consultations, encouraging proactive
healthcare management.
2. Insurance
is provided on the trust basis and the facts mentioned in the proposal form.
What is your understanding on the above statement with reference to the basic
principles of Insurance? (10 Marks)
Answer: The statement "Insurance is
provided on the trust basis and the facts mentioned in the proposal form"
encapsulates several fundamental principles of insurance. Let's break down the
understanding of this statement in reference to the basic principles of
insurance:
- Utmost Good Faith (Uberrimae Fidei): Insurance
contracts are based on the principle of utmost good faith, wherein both the
insurer and the insured are expected to act honestly and disclose all
material facts relevant to the insurance contract. The insured is required
to provide accurate and complete information about the risk being insured,
typically through a proposal form or application. By disclosing all
relevant facts honestly, the insured places trust in the insurer, and the
insurer relies on the information provided to assess and underwrite the
risk.
3. Jatin
has recently started working with a renowned MNC after passing out of a premier
BSchool. A senior colleague has suggested him to take a life insurance policy.
However, Jatin is not convinced with the idea of taking a life insurance policy
and is unaware of the various life insurance products which are available in
the market. As a friend of Jatin You need to make Jatin understand the
following:
a.
Explain the concept of life insurance to Mr. Jatin and highlight the importance
of a having life insurance policy (5 Marks)
Answer: Jatin's hesitation regarding life
insurance is understandable, especially if he's unfamiliar with its concept and
benefits. Let me explain the concept of life insurance and why it's important
for him to consider having a policy:
Life insurance is a financial product
designed to provide a lump sum payment to beneficiaries upon the insured
individual's death or sometimes upon certain events like critical illness or
disability, in exchange for regular premium payments. The main purpose of life
insurance is to provide financial protection and support to the insured's
dependents or beneficiaries in the event of their untimely demise.
b. Help
Jatin in explaining the various types of life insurance policies (any 4) which
are available in the market. (5 Marks)
Answer:
1. Term Life Insurance:
- Term life insurance provides coverage for a specific period,
typically ranging from 5 to 30 years.
- It offers a death benefit to beneficiaries if the insured
dies within the term of the policy.
- Term life insurance is usually more affordable compared to
other types of life insurance, making it an attractive option for
individuals seeking temporary coverage or looking to meet specific
financial obligations within a defined timeframe.
- Policyholders have the option to renew their coverage at the
end of the term or convert it into a permanent life insurance policy.
Dear students, get fully solved assignments by professionals
Do send your query at :
or call us at : 08263069601
(Plagiarism proofed
assignments available with 100% surety and refund)
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