Question 1
This is a case study question where the candidates were required to read, understand and apply their knowledge of the insurance policies, principles and fundamentals in solving practical real-life problems posed in the case of XYZ Limited as related in the following questions:
- Under which policy would the stolen vehicle be compensated?
- Under which policy would the hospital bill of N 500,000 be paid?
(c) Identify and explain the principle of insurance that would enable XYZ limited insure
(d) Explain the other insurance policy that could have been affected to take care of the injured employees.
Observation
This was poorly answered as few candidates were able to provide the required answers. Candidates were not showing clear understanding of insurance policies and insurance principles as required in questions of the case study.
1(a) Motor insurance policy
(b) The medical expenses section of group personal accident insurance policy effected by the company would pay the hospital bill of N 500, 000 (Five hundred thousand naira only).
- The principle of insurance that would enable XYZ limited to insure her employees is insurable interest.
- This is the legal right to insure arising out of the financial relating between the insured and the subject matter of insurance.
(e) Other insurance policy that could have been affected to take care of the injured employees is employer’s liability insurance, this provides insured with financial protection against accidental death or illness or bodily injuries sustained by employees in the course of their employment.