Explain what is meant by under-insurance, Other Subject

Assignment Help:

Question:

a) Explain what is meant by under-insurance and why clients engage in same?

b) Penny Sue insures her car for Rs 500,000 for a one-year period. The market value of this car is currently Rs 750,000. The insurance policy has an excess of Rs 15,000. One month after taking the policy, Penny Sue meets with an accident.

i. In the event of a total loss claim, how much would she get from her insurer?

ii. In the event of a claim estimated at Rs 100,000, how much would she get from her insurer?

iii. In the event of a claim estimated at Rs 15,000, how much would she get from her insurer?

iv. If the policy had a deductible of Rs 15,000 instead of an excess of 15,000, how would this change your answer to parts (i) to (iii) above?

c) List three ways insurance companies can use to reduce under-insurance and discuss their effectiveness in practice

Related Discussions:- Explain what is meant by under-insurance

What''s audience analysis?, Question 1 What are the indicators of Excellen...

Question 1 What are the indicators of Excellence in Technical Communication? Question 2 What's Audience Analysis? Explain its significance in Technical Communication

Use of e-commerce helpful to the consumer, USE OF E-COMMERCE HELPFUL TO THE...

USE OF E-COMMERCE HELPFUL TO THE CONSUMER In C2B communication, customers/consumers are given more power over what and how products are made and how services are delivered, the

Dental nurse, how do you carry health and safety act at your work place

how do you carry health and safety act at your work place

Define primary care, Primary health care (PHC) is increasingly important in...

Primary health care (PHC) is increasingly important in modern health care reform, with a national PHC strategy recently released in 2010. The World Health Organisation describes PH

Describe problem solving, Problem 1: (a) Describe Problem solving. (...

Problem 1: (a) Describe Problem solving. (b) What are the basic components of a problem? Illustrate your answer using a concrete example. (c) Explain carefully any three

Roman history, Roman History: It spans a thousand years and covers not onl...

Roman History: It spans a thousand years and covers not only the Mediterranean region, but Europe to the British is less, northeast to the Danube River, and eastward through Asia

Feminist research methodologies:, Feminist Research Methodologies: Feminis...

Feminist Research Methodologies: Feminist research is research which is carried out by women who identify as feminists, and which has a particular purpose for knowing (a `why'), p

Health science unit health information and data, how much for 800 words wan...

how much for 800 words want within a weak

Exam , 3. family day care provider Alicia Magnus always has an interesting ...

3. family day care provider Alicia Magnus always has an interesting activity set up for the children as they arrive in the morning. This gives Alicia a chance to have quick chats w

I am basically from sales & marketing background , QUESTION : Create a cas...

QUESTION : Create a case encompassing data from your routine office work so as to apply all Quantitative Techniques learned in this course. Perform all possible analyses on t

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages