Risk and Insurance Coverage

Report 1 / 5

Anusha has just graduated from a college and obtains a well-paying job.

She is in good shape and seldom falls sick.

She thinks that the medical insurance is an unnecessary expenditure.

She does not need a medical insurance until a later stage in life.

Is this true?

(A)		No, this is not true. Anusha should get a medical insurance as she use it as a tool to accumulate profit aside from protection.

(B)		No, this is not true. Anusha should get a medical insurance as early as possible because insurance plans vary according to age. Essentially, getting an insurance earlier means the premium is cheaper as compared to an older age which helps to save a lot of money.

(C)		True, As Anusha is a healthy young adult, she does not need a medical insurance as she will seldom require medical services.

(D)		True, Anusha can purchase a medical insurance at a later stage in life when she is more susceptible to illness.

Difficulty Level: Medium

Report 2 / 5

Puan Mazuki is a 46-year old female who is a non-smoker.

She wishes to purchase an insurance with a face value of RM 200 000.

Based on the table below, what is the estimated annual premium for Puan Mazuki?

The annual cost of insurance per RM100 face value

Difficulty Level: Medium

Report 3 / 5

Encik Zakri stays in Peninsular Malaysia.

He wants to buy a motor insurance policy.

The following is the information regarding the vehicle he wants to insure.

Sum insured : \(RM85000\)

Age of vehicle : \(6\) years

Engine capacity : \(2494 \) cc

NCD : \(30\%\)

Calculate the gross premium for the third party, fire and theft policy.

Difficulty Level: Medium

Report 4 / 5

Table below shows part of the information of the policies and losses incurred.

Policyholder	Iman
Amount of insurance required	\(RM \space 490\space 000\)
Amount of insurance bought	\(RM \space 367\space 500\)
Deductible	\(RM \space 4 \space 900\)
Loss	\(RM \space 49\space 900\)

Calculate the compensation received by Iman?

Difficulty Level: Hard

Report 5 / 5

Table below shows part of the information of the policies and losses incurred.

Policyholder	Leo
Amount of insurance required	\(RM \space 570\space 000\)
Amount of insurance bought	\(RM \space 320\space 000\)
Deductible	\(RM \space 7 \space 190\)
Loss	\(RM \space 36 \space 000\)

Leo has to insure 75% of its insurable value but he buys an insurance of \(RM \space 320\space 000\) only.

Calculate the co-insurance penalty.

Difficulty Level: Hard