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Course:
Insurance & Risk Management
Q1)
In case if a Business Man want to avail 3 tier Insurance as Keyman Life &
his Family Insurance, Health Insurance along with Property Insurance. As per
Insurance basic Principles which 3 IMP / Crucial Principles would be foreseen
in Insurer & Insured Contract Signing – Kindly explain with relevant
paradigm (10 marks)
Answer:
When a business person seeks to avail a 3-tier
insurance package covering Keyman Life & Family Insurance, Health
Insurance, and Property Insurance, several important insurance principles come
into play during the contract signing process between the insurer and the
insured. These principles ensure clarity, fairness, and appropriate coverage.
Let's discuss three crucial principles with relevant paradigms:
- Utmost Good
Faith (Uberrimae Fidei): This principle emphasizes that both the
insured and the insurer must disclose all material information honestly
and fully to each other. This ensures that both parties have a clear
understanding of the risks and terms of the insurance contract.
Relevant Paradigm: Keyman Life Insurance Suppose a business owner
seeks Keyman Life Insurance to cover the life of a key employee whose skills
and expertise are crucial to the business. The business owner must provide
accurate and complete information about the employee's health, lifestyle, and
other relevant details. Similarly, the insurer must provide complete details
about the terms, coverage, and exclusions of the policy. This principle ensures
that the insurance contract is based on accurate information, preventing
disputes later on.
- Insurable
Interest: This principle states that the insured must
have a legitimate financial interest in the subject matter of the insurance.
Without insurable interest, the insurance contract becomes a mere wager
and lacks the necessary element of risk transfer.
Relevant Paradigm: Property Insurance For Property Insurance, the
business owner must demonstrate insurable interest by having ownership,
possession, or some financial stake in the property being insured. For
instance, if the business owner owns a commercial property, they have insurable
interest in protecting that property against risks like fire, theft, or damage.
This principle ensures that insurance contracts are valid and not used for
speculative purposes.
- Indemnity: The principle
of indemnity states that insurance is meant to compensate the insured for
the actual financial loss suffered and not to provide a profit. The
insured should not be in a better financial position after a loss
Q2)
If a Company establish Risk Management Dept. Kindly explain how a Risk Manager
can foresee & chalk out different types of Loss Exposures for them? (10
Marks)
Answer: Establishing a Risk Management Department in a company is
essential for identifying, assessing, and mitigating various types of risks
that the organization may face. A skilled Risk Manager plays a crucial role in
foreseeing and addressing different types of loss exposures. Here's how a Risk
Manager can go about this process:
1.
Identify Loss Exposures: The first step for a Risk Manager is to identify all potential
loss exposures that the company might face.
Q3.a.
Explain the technicalities of Re Insurance that can be perceived /applied well
in advance by an Insurance Company? (5 Marks)
Answer: Reinsurance is a crucial aspect of risk management for
insurance companies. It involves an insurance company transferring a portion of
its risks to another insurance company or multiple companies, known as
reinsurers. This helps the primary insurer mitigate its exposure to large losses
and maintain financial stability. Here are the technicalities of reinsurance
that can be
Q3.b If a Health Insurance Policy plans with respective separate
Covers of Rs 5-5 Lakhs have been taken from Govt. (Oriental) Insurance Company
and STAR Health Insurance Company out of which is Oriental Insurance Policy
cover is about to expire on 31st of December & somehow it has been skipped
out to renew till date. On 25 th of Dec person gets Heart Attack & gets
admitted in Hospital & undergone Angioplasty with cost of 4 Lakhs. Kindly
advise which company will settle the Claim. (5 Marks)
Answer: In the scenario you've described, where a person holds
separate health insurance policies from both Oriental Insurance Company and
STAR Health Insurance Company, and one of the policies is about to expire, the
claim settlement process will depend on the terms and conditions of each policy
and the
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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