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 Jay Kay’s Misfortune as related in the following questions:
- Was Jay Kay’s job loss insurable?
- State the reason for your answer in (a)
- Explain the action the management of Sadauki industries Limited should have taken in the absence of insurance cover for its employees.
- Identify and explain two appropriate insurance policies that would have been taken to care for 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.
Some of the suggested responses were:
1. (a) Insurance policies Sadauki Industries Limited would have taken to cover injuries to customers:
(i) Products Liability Insurance is the insurance policy required by the Sadauki Industries Limited to cover injuries to customers
(ii) Product Liability Insurance Policy covers the legal liability of the manufacturer and sellers towards their customers who may be killed, or sustained bodily injury and loss of or damages to their properties as a result of the use and consumption of the products purchased
(b) The two appropriate insurance policies that would have been taken by Sadauki Industries Limited are:
(i) Employer’s Liability Insurance Policy: This is designed to insure the legal liability of the employers towards their employees for accidents and diseases contracted in the course of their employment leading to death, permanent and temporary disablement and medical expenses.
(ii) Group Personal Accident Insurance Policy: This is an insurance policy which provide the insured with 24 hours protection against the risk of accident resulting to death or bodily injury of the insured persons within the period of insurance
(iii) Group Life Assurance Policy: This is a benefit policy arranged to grant pr member of a group which pays the sum assured in the event of the death of the insured member to the personal legal representative of the lives assured.