Mr.Ali purchased a car on 20th February 2015 for RO 6,500. He insured the car with ABC Insurance for the same amount. He also took a life insurance policy on his name which provides only death benefits, on the same date for RO 50,000 premium to be paid yearly which amounted to RO 1,050. On 25th February 2017 he met with an accident due to over speeding. His car got damaged, so he made a claim to insurance company. The insurance company came to know on investigation that he did not disclose two offenses in 2016 for jumping signal while renewing the policy, so they kept the policy claims on hold. He repaired the car with an outside garage which amounted to RO 400 after which the car was insured for RO 4,000 with another insurance company on 15 March 2017. On 19 March 2018 he met with an accident while driving his car. He died on the spot and his wife recovered after one month from injuries. His wife made a claim to both life insurance and general insurance company for the losses. At this point his wife came to know that in January 2018 he mortgaged the car with a private financier for RO 3,000 to meet his family expense. The insurance company found that the car was fully damaged, and cost of repair was more than the sum assured. a) Identify and explain the insurance terms related to the above case. (3 Marks) b) What type of insurance policy did Mr.Ali purchased on his life? Differentiate the features of this type of policy with other types of life insurance policies issued by any insurance company in Oman in your own words (300 words) (3 Marks) c) Do you think Mr.Ali should have got the claim for the first claim? Support your answers with proper reasons? (2 Marks) d) How much claim will his wife get from both policies? Identify and explain about the documents to be verified by the insurer to accept the claim. (2 Marks) Mr.Ali purchased a car on 20th February 2015 for RO 6,500. He insured the car with ABC Insurance for the same amount. He also took a life insurance policy on his name which provides only death benefits, on the same date for RO 50,000 premium to be paid yearly which amounted to RO 1,050. On 25th February 2017 he met with an accident due to over speeding. His car got damaged, so he made a claim to insurance company. The insurance company came to know on investigation that he did not disclose two offenses in 2016 for jumping signal while renewing the policy, so they kept the policy claims on hold. He repaired the car with an outside garage which amounted to RO 400 after which the car was insured for RO 4,000 with another insurance company on 15 March 2017. On 19 March 2018 he met with an accident while driving his car. He died on the spot and his wife recovered after one month from injuries. His wife made a claim to both life insurance and general insurance company for the losses. At this point his wife came to know that in January 2018 he mortgaged the car with a private financier for RO 3,000 to meet his family expense. The insurance company found that the car was fully damaged, and cost of repair was more than the sum assured. a) Identify and explain the insurance terms related to the above case. (3 Marks) b) What type of insurance policy did Mr.Ali purchased on his life? Differentiate the features of this type of policy with other types of life insurance policies issued by any insurance company in Oman in your own words (300 words) (3 Marks) c) Do you think Mr.Ali should have got the claim for the first claim? Support your answers with proper reasons? (2 Marks) d) How much claim will his wife get from both policies? Identify and explain about the documents to be verified by the insurer to accept the claim. (2 Marks)
