Question 4

You are the claims manager and a claims assistant has presented the following claims from clients.

Case 1

The Vehicle was involved in an accident 2 years ago and this was not stated in the proposals form by the insured. The claimant has paid the premium and filed all necessary documents.

Case 2

One twin sister was married while the other led a care free life of being on the move. The spinster twin took out a life insurance policy naming the married twin as a beneficially. The insured died and the named beneficially was been informed. The named beneficially has filed all papers that meets the requirements. An investigation report reveals that the named beneficially actually killed the 'insured' and displaced her twin in the marriage.

Case 3

A Marketing Director bought a RAV 4 used vehicle from Japan at a landed cost of US $10, 000.00. He insured the car at ZMK 550, 000.00. This amount is equivalent to how much Toyota Zambia can sell anyone the same car.

You are required in each case to decide whether to settle the claim or not justify your decision by giving insurance legal principle(s) involved reasons for you answer?