Page 28 - Spotlight A+ Form 4 & 5 Mathematics KSSM

Form
5 Mathematics Chapter 3 Consumer Mathematics: Insurance

due to theft or fire, death due to accident or (f) Motor insurance
injury and liability arising from third parties – Provides coverage against any loss or
caused by such individual. damage related to the use of motor
vehicle
2. Characteristics of general insurance:
• Needs to be renewed annually 4. Four types of motor insurance policies:
• Using the principle of indemnity (a) Act policy
– Protects liability of the third party
3. Types of general insurance: for death or bodily injury (excluding
passengers)
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(b) Third party policy
Motor – Additional protection on the act policy
insurance which provides additional protection to
Medical the third party
and health Fire
CHAP. insurance – This policy covers losses on property that
3 insurance is suffered by the third party
Types of (c) Third party, fire and theft policy
general – Additional protection on the third
insurance party policy which provides additional
Travel Personal protection to policyholder
insurance accident – This policy covers losses to own vehicle
insurance caused by accidental fire or theft
Robbery (d) Comprehensive policy
insurance – Additional protection on the third party,
fire and theft policy which provides
additional protection to policyholder
(a) Fire insurance – This policy covers losses and damages to
– Provides protection against fire risk own vehicle due to accident
(b) Personal accident insurance 5. Group insurance:
– Provides coverage to policyholder who • Provides coverage to a group of individuals,
suffers bodily injury, disability or death usually employees of a company such as bank
resulting directly from accident. This employees or pupils in schools and students
insurance is different from life insurance, in institutes of higher education
and medical and health insurance. • Employees who are covered under this policy
(c) Robbery insurance receive financial protection in the events of
– Provides protection due to robbery death, disability, hospitalisation and surgery
(d) Travel insurance in accordance to the claim limits set out in the
– Protects policyholder against losses policy
incurred during travel such as death and
permanent disability, loss of luggage,
passport and money, medical expenses Investigate, interpret and perform
and others. calculations involving insurance rates and
(e) Medical and health insurance premiums
– Pays compensation to policyholder who
requires health care due to health and 1. Premium is the amount of money payable by
illness treatments the policyholder to the insurance company to
cover the risk.

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