Page 29 - Spotlight A+ Form 4 & 5 Mathematics KSSM

Form
5
Chapter 3 Consumer Mathematics: Insurance Mathematics
(a) Comprehensive policy for Peninsular
Malaysia: BRILLIANT Tips

Basic premium The premium rate for third party, fire and theft
= Rate for the first RM1 000 + RM26 for policy is 75% of the basic premium of the
each RM1 000 or part thereof on value comprehensive policy.
exceeding RM1 000

Gross premium for third party policy:
(b) Comprehensive policy for Sabah and RM
©PAN ASIA PUBLICATIONS
Sarawak: Basic premium 151.20
Minus NCD 25% 37.80
Basic premium Gross premium 113.40
= Rate for the first RM1 000 + RM20.30
for each RM1 000 or part thereof on Try question 3 in Formative Zone 3.1
value exceeding RM1 000 CHAP.
3

Example 3 BRILLIANT Tips

Mr Hafiz has a car of model X to use in Peninsular 1. No Claim Discount (NCD) clause will be issued
Malaysia. The information of the car is as follows. if no claim is made against the motor insurance
during the coverage period before the policy
Sum insured : RM94 000 renewal is made.
Age of vehicle : 5 years 2. NCD will reduce the total premium payment for
Engine capacity : 1 799 cc the insurance policyholder.
NCD : 25% 3. The benefit of NCD will be lost if the policyholder
has made a claim for a personal or a third party
Calculate the gross premium of Mr Hafiz's car damage.
under the comprehensive policy, the third party,
fire and theft policy, and the third party policy.

Solution:
Gross premium for comprehensive policy: Solve problems involving insurance
including deductible and co-insurance
RM
The first RM1 000 339.10
RM26 × RM93 (each RM1 000 2 418.00 A Deductible
balance) 1. Deductible is a provision in an insurance
Basic premium 2 757.10 contract that requires the policyholder to borne
Minus NCD 25% 689.28 a small portion of the losses incurred.
Gross premium 2 067.82
2. Under this provision, a certain amount that has
BRILLIANT Tips been set will be deducted from the amount of
compensation that should have been paid by the
RM94 000 – RM1 000 insurance company.
——————————– = RM93
RM1 000
3. Deductible is a provision that exists in the
Gross premium for third party, fire and theft policy: medical and health insurance as well as the
property insurance.
RM
Basic premium 2 067.83 4. Deductible is not used in the life insurance.
Minus NCD 25% 516.96
Gross premium 1 550.87

274 3.1.2 3.1.3 275

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