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Insurance Premium Calculations Guide

The document provides details on various insurance scenarios, including Encik Osman's car insurance purchase and calculations for life insurance premiums for Mr. Thomas and Aina. It also outlines the annual premium for a life insurance policy with a critical illness add-on for Madam Janice. Additionally, it includes calculations for gross premiums for different motor insurance policies based on engine capacity and location.

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KIRUTIKA SARAVANAN
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80 views2 pages

Insurance Premium Calculations Guide

The document provides details on various insurance scenarios, including Encik Osman's car insurance purchase and calculations for life insurance premiums for Mr. Thomas and Aina. It also outlines the annual premium for a life insurance policy with a critical illness add-on for Madam Janice. Additionally, it includes calculations for gross premiums for different motor insurance policies based on engine capacity and location.

Uploaded by

KIRUTIKA SARAVANAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CHAPTER 3: INSURANCE

1. Encik Osman buys insurance for his new car worth RM55 000 from Syarikat Bersinar. Encik Osman makes
a payment of RM 1517.80.
Based on the above situation, fill in the blanks with the correct answers.
(a) insurance company Syarikat Bersinar
(b) policyholder Encik Osman
(c) coverage limit RM55 000
(d) premium RM1517.80
(e) type of insurance Motor insurance

2. The table below shows the annual premium rate schedule per RM1 000 face value given.

Non-smoker (RM) Smoker (RM)


Age
Male Female Male Female
41 2.86 1.92 3.74 2.43
42 3.08 2.04 4.06 2.60
43 3.35 2.19 4.44 2.81
44 3.66 2.36 4.87 3.04
45 4.03 2.56 5.39 3.30

(a) Mr Thomas wants to buy a life insurance policy worth RM250 000. He is 45 years old and a smoker.
Calculate his monthly premium.

RM250 000
Annual premium = × RM5.39
RM1 000
= RM1 347.50

RM1 347.50
⸫ monthly premium =
12
= RM112.29

(b) Aina wants to buy a life insurance policy worth RM600 000. She is 44 years old and a non-smoker.
Calculate Aina’s half yearly premium

RM600 000
Annual premium = × RM2.36
RM1 000
= RM1 416.00

RM1 416.00
⸫ half yearly premium =
2
= RM708.00
3. Madam Janice wants to buy a life insurance policy worth RM250 000 and adds on a critical illness policy.
The insurance company offers a critical illness policy with a coverage of 40% of basic face value.
Given that the annual premium rate per RM1 000 face value for the life insurance policy is RM1.33 and the
critical illness policy is RM1.84 according to the age and health status of Madam Janice, calculate the
annual premium.

40
The amount of coverage for critical illness = × RM250 000
100
= RM100 000

RM250 000 RM100 000


⸫ Annual premium = [ × RM1.33] + [ × RM1.84]
RM1 000 RM1 000
= RM332.50 + RM184.00
= RM516.50

4. Calculate the gross premium of comprehensive policy, third party, fire and theft policy, and third party
policy based on the Schedule of Motor Tariff 2015 below.

Engine Peninsular Malaysia Sabah & Sarawak


capacity not Comprehensive policy Third Party Comprehensive policy Third Party
exceeding Policy Policy
(RM) (RM)
(cc) (RM) (RM)
1400 273.80 +RM26.00 for
120.60 196.20 +RM20.30 for
67.50
1650 305.50 every RM1 000 135.00 220.00 every RM1 000 75.60
balance balance
2200 339.10 151.20 243.90 85.20

For comprehensive policy:


(a) The first RM1 000 RM305.50
Usage: Peninsular Malaysia

(b) Balance 39 × RM26 = RM1 014 Sum insured: RM40 000


Engine capacity: 1630 cc
(c) Basic premium RM1 319.50 NCD: 30%

(d) NCD 30% RM395.85

(e) Gross premium RM923.65

For third party, fire and theft policy: For third party policy:
(a) Basic premium RM989.63 (a) Basic premium RM135.00

(b) NCD 30% RM296.89 (b) NCD 30% RM40.50

(c) Gross premium RM692.74 (c) Gross premium RM94.50

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