NAME: NELSON MAPALO

STUDEN NUMBER: BACT22112981

SCHOOL: SCHOOL OF BUSINESS

PROGRAMME: ACTUARIAL SCIENCE

COURSE: GENERAL INSURANCE THEORY

ASSIGNMENT NO.: ONE

LECTURER NAME: MABETA MULUNDA

YEAR: 2023

DATE GIVEN: 28 FEBRUARY

DUE DATE: 30TH MARCH

Question one.

For a large organization such as the University of Lusaka, insuring its properties
should be regarded as a priority and a to-do thing as opposed to being an option.
Insurance covers such as building or property insurance policy may help cover future
uncertainty burdens that the university may face. In spite of having tight security and
students who are matured enough, uncertainties such as fire and theft are hardly
predictable and may heavily affect the organization with extreme losses if not prepared
for. In such instances, the company can opt for property insurance cover policy which
offers guaranteed safety to minimize the losses that the university can incur. In addition,
equipment’s such as geysers which supply water to the student’s hostels and other
central heating systems poses a great threat as they can cause fire that may eventually
lead to property damage. To highlight more, fire and special perils policy is one of the
covers that the university may rely and anchor on when damage is made to any of the
organizations properties because the company can be compensated for in such
instances. Due to fire, lightning and limited explosion as offered by the insurance
company, moving assets or properties such as school buses and other university’s
commercial transport are prone to the mentioned perils. Assets such as commercial
vehicles must be prioritized to be on the insurance list. Given the number of accidents
that happens in the busy capital of Lusaka, the properties are also at high risk of getting
involved in an accident. Furthermore, the University of Lusaka’s day to day operations is
almost and entirely based in the busy capital where these accidents occur frequently.
To avoid loses that may arise from these accident, the company should insure its
vehicles. Although lightning can be rare, explosions on the other hand poses a great
threat to the company’s commercial transports. Insuring the university’s properties such
as building should go hand in hand with insuring the commercial transport under the
commercial motor insurance policy. The university should also consider the students
who form the basis of the organizations day to day operation. Hence, Loss or damage
of the university commercial transports is not the only loss that the university may face
in times of accidents but also injuries or sudden death of the salient clients it serves
which are the students. In order to avoid the huge expenses that maybe incurred on the
students and third party’s; the university may stand a good chance of handling the
problems at hand provided they had already secured a necessary insurance cover
policy. As such, students involved in an accident inclusive of the driver are taken care of
in terms of medical bills and other items outlined in the specified cover policy.
Question two.

With the rising of fire and other special peril cases involving Bona general
insurance, management should consider balancing its property, motor and pet
insurance account to avoid heavy and extreme losses. This can be done by setting and
outlining clearly the boundaries of what a certain type of cover policy includes and
complements. To maintain prudence and professionalism, the company’s staffs should
clearly explain what a particular policy means to their valued customers. This will help
both party’s to come into an understanding of what a policy meant when a client files a
claim. In cases of fire and other special perils such as lightning, it should be specified to
the company’s clients that; destruction and damage to a property can only be
compensated for when the scenario that has occurred is in accordance and meets what
has been outlined in the company’s insurance policy tract. As such, the policy should
only cover damage to property caused by fire only and never in other instances where;
fire is as a result of an explosion, ignitions or any other undergoing heating process
involving the application of heat. To shade more light on damage caused by explosion,
the limited explosion cover policy should be provided within the designed standard fair
policy to maintain fairness in the company’s dealings with its valued customers. Under
standard fire policy, the loss or damage caused by fire or lightning should be well
defined as they are the perils that frequently happen in the area where Bona insurance
company operates. Therefore in line with fire and special perils cover for the properties,
explosion as a results of fire on the premises insured and explosion of other domestic
appliance such as boilers or gas being used for domestic purposes or heating and
lighting must be favorably be articulated in consideration to the company’s customers.
That’s to say insured premises under standard fire policy can be compensated for and
non-insured premises cannot be compensated in case of fire damage. Motors are at
high risk of being involved in fire damage because they have all the perils: oxygen, fuel
and heat that may eventually lead into a fire when they are being driven from one place
to another. As such, the company should adequately make known to its valued
customers in what instances their car can be compensated for in case of damage. On a
large scale and based on the available account statistics, the company should maintain
fair proportions among property, motor and pets insurance cover policy, where property
should be slightly higher than motor followed by pets account. Overall, property
insurance and motor insurance should well be correlated as they take up a huge
percentage of losses as compared to the pet’s insurance policy.
Question three.

To begin with from the perspective of Niko insurance company. There, are so
many ways the company can maintain its professional relationship with their client Mr.
Makanta. These are the services that the company can be offering to Mr. Makanta in
order to remain relevant and of great importantance to him. This can be done in ways
such as informing the client of the newly implemented and available services that the
company is offering that can be of great suit to Mr. Makanta. The company should then
notify Mr. Makanta of the available services on which he can be helped on and that they
are available for 24 hours. By virtue of Mr. Makanta insuring his car with Niko insurance
company, the company can provide non insurance services such as help line and
advice. Under this policy the company can be providing emergence assistance or expert
advice to Mr. Makanta on a day to day basis whenever he needs help. This can be in
any emergence situation where Mr. Makanta can have a car breakdown that need
immediate help. In these situations the company can exercise their services by giving
professional advice such as recommending where reliable spare parts of the car can be
bought or the nearest garage where the client can get his car fixed. In addition to this,
the company can also advice and connect Mr. Makanta to professional dealers and
fixers of needed broken items of the car in the given area where the breakdown has
happened. Though the bills maybe on Mr. Makanta, this company action minimizes the
risk of claims which it can incur while at the same time providing sound dealings of
buying reliable items for the client. During this procedure the company can go on and
negotiate the pricing of services with the dealer on behalf of Mr. Makanta to reduce the
costs that the dealers can charge the client. The company can also offer other non-
insurance services such as theft insurance on the car that Mr. Makanta has insured.
This can be done by offering professional advice of how to improve physical security,
improving detection of theft or other methods of protecting the car from thieves. In as
much as the company is willing to be providing advice in areas of risk control, it’s also
Mr. Makantas responsibility to reduce the loss that he can incur when his car happens
to be in any of the above mentioned situations. In order to avoid this, Mr. Makanta can
reciprocate the acts by also seeking professional advice on which action should be
taken in the situation at hand. By doing so, both the company and Mr. Makanta tend to
be in Frequent contacts which thereafter helps to strengthen the relationship between
the two parties
Question four.

During the contract agreement, a proposal form or contract is filled in by the client
who wish to insure a certain property or any other material facts that one can insure.
Filling and signing of the form means both the client and the company have reached a
mutual agreement of the terms and conditions that has been outlined in the contract. In
situations where a client makes adjustments to the property or premise that has already
been insured, the clients should inform the insurance company as soon as possible.
The adjustment can be improvement in security system such as anti-burglary doors.
These adjustments can either be those that reduce the risk or those that increase the
risk. The primary purpose is to keep the insurance company updated with each action
the clients has taken so as they can also adjust what has been outlined in the contract if
there may be need to. From the company’s perspective, they must be prudent and
make well known to the client so as their clients understands what all the details in the
contract mean. On the other hand, the client must also ask and seek for professional
advice of what certain policies mean in the contract to avoid misunderstandings that
may arise in future. In the contract some of the critical parts of the contract can be; the
proposers name, the proposers address, details of the past insurance, details of
previous claims, periods of insurance, sum insured or limit of liability, security of the
premise or property being insured, the proposers age and among others. Mr. Mwangala
who had his car and house insured might or might have not been well informed of what
the contract outlined with the company.. As per say, the claim filed by Mr. Mwangala
can either be payable or not payable. In instances where all the information was
revealed to the insurance company and the premises insured where surveyed by
experts, the filed claim is payable unless it fails to meet what was outlined in the
contract at first glance. For example, if the experts had checked the house which Mr.
Mwangala insured for hazards that can cause fire such as wiring of the house, water
systems, and the overall standard of the house and concluded the house met the
standards fire policy, then the clients claim can be payable. The exclusion can be in
instances when the circumstance at hand fails to meet what the contract had outlined.
Same applies for his car insurance. Under standard insurance car insurance policy,
security in premises where the insured car is kept plays a critical part in whether a claim
can be compensated for or not. If the car was left in premises with no security, then the
company cannot compensate Mr. Mwangala for theft of the tyres for his car. In
conclusion, Mr. Mwangala being compensated for by the insurance company is
subjective to whether the circumstance at hand meet the terms and condition that where
outlined in the signed contract.