Observation

Most candidates who attempted the question did well.  

The expected responses to the question include:

(a)     Insurance is a protection taken by an individual or an organization to protect life and property against future losses.                                                                                       

    (b) Types of non-life insurance    

1. Fire
2. Burglary/Theft
3. Motor vehicle
4. Marine
5. Accident
6. Fidelity guarantee
7. Employer’s liability
8. Aviation insurance
9. Property insurance
10. Bad debt insurance

                                                         
(c)           Principles of insurance

1. Utmost good faith/Uberrimae fidei: This principle requires all parties concerned in an insurance contract to disclose all relevant information that may likely affect the contract/ It states that all parties must deal openly and honestly with each other.
2. Insurable interest: The insured must suffer personal loss or damages to receive compensation.
3. Indemnity:  This principle indicates that the insured is compensated by being placed in his /her former position before the loss.
4. Subrogation: Once the insured has been indemnified against a loss, the insurer takes the rights of the insured.
5. Proximate cause: The insured will only be indemnified if the loss that has occurred is caused by the risk insured against.
6. Abandonment: This means that if the cost of repairing a damaged insured object exceeds the real value of the object, the object should be discarded. The insured will be indemnified to the value of the total loss.
7. Contribution: If an insured has a contract with more than one insurance company, with the same policy, he will only be indemnified to the actual loss he incurred through contributions from the insurance companies on pro rata basis.