Question
An overhead travelling crane in a factory suffers substantial damage. The damage is repairable at an estimated cost of GHC10, 000.00 but repairs would take
An overhead travelling crane in a factory suffers substantial damage. The damage is repairable at an estimated cost of GHC10, 000.00 but repairs would take twelve weeks to complete. Alternatively a replacement crane is available from the manufacturers and can be installed and operational within four weeks for GHC25, 000.00. The loss of gross profit due to the crane being out of service or action is calculated at GHC 5,000.00 per week.
Assuming the material damage insurance and the business interruption insurance risks are placed with different insurers; calculate the total cost of the claim for the Material Damage loss and the Business interruption loss under the following settlement options:
- repair option and [2 marks]
- replacement option [4 marks]
- comment on the extend of liability likely to be accepted by each of the two insurers under the replacement settlement option. [3 marks]
- As a claims handler with All Peoples Insurance Company Limited, outline any five preliminary facts required in assessing liability in connection with construction insurance claims. [2.5 marks]
I-Systems Limited depends solely on computers and computer systems to drive their operations. However, due to numerous risk exposures confronting the stability of their computer systems, they are reluctant to expand into other markets. As an engineering insurance underwriter, advice I-Systems regarding the existence of a material damage and business interruption policies as tools for dealing with their material damage and revenue loss exposures highlighting the relevant insurance policy for computers, cover provided by this policy, properties (material damage) and contingencies to be insured
An overhead travelling crane in a factory suffers substantial damage. The damage is repairable at an estimated cost of GHC10, 000.00 but repairs would take twelve weeks to complete. Alternatively a replacement crane is available from the manufacturers and can be installed and operational within four weeks for GHC25, 000.00. The loss of gross profit due to the crane being out of service or action is calculated at GHC 5,000.00 per week.
Assuming the material damage insurance and the business interruption insurance risks are placed with different insurers; calculate the total cost of the claim for the Material Damage loss and the Business interruption loss under the following settlement options:
- repair option and [2 marks]
- replacement option [4 marks]
- comment on the extend of liability likely to be accepted by each of the two insurers under the replacement settlement option. [3 marks]
- As a claims handler with All Peoples Insurance Company Limited, outline any five preliminary facts required in assessing liability in connection with construction insurance claims. [2.5 marks]
I-Systems Limited depends solely on computers and computer systems to drive their operations. However, due to numerous risk exposures confronting the stability of their computer systems, they are reluctant to expand into other markets. As an engineering insurance underwriter, advice I-Systems regarding the existence of a material damage and business interruption policies as tools for dealing with their material damage and revenue loss exposures highlighting the relevant insurance policy for computers, cover provided by this policy, properties (material damage) and contingencies to be insured
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