You have been appointed as a claims underwriter responsible for settlement of losses with clients. Below are details of events that you require to make a decision. Assume that both vehicles are insured by your insurance company. A passenger bus was travelling from point A to Point B when it collided with a parked saloon vehicle. The accident occurred on a road that is not authorized as a passenger route. The bus swerved to avoid hitting into a wall fence but ended up destroying part of a fence of a neighbor to the owner of a parked car.The car was parked partly on the gravel road. The car will definitely require panel beating. Four kids that live at the house whose fence was partly destroyed had strayed into the road while playing football causing the driver to swerve and hit into the car. The bus owner does not accept any responsibility what so ever claiming that he did not expect the bus to operate on that as it was taken to the garage for service. All passengers escape unhurt but two passengers suffered a trauma and require hospitalization. An old woman who was resting behind the fallen fence suffered a broken leg. The neighbors are bickering over the consequences of the collision. 1. Describe what is meant by risk, peril, hazard, distinguishing clearly between the following types of hazards; a. Morale hazard b. Moral hazard c. Attitudinal hazard 2. Outline the risk framework you will use to analyze the risk events. 3. From the above scenario, Give examples of direct loss, indirect loss and liability risk 4. Identify the victims, losses, hazards and perils in this case. 5. Identify remedies availabile, identifying people who can claim and state clearly the party responsible for settlement of the claim directly and indirectly 6. Give reasons to justify your assertions above
You have been appointed as a claims underwriter responsible for settlement of losses with clients. Below are details of events that you require to make a decision. Assume that both vehicles are insured by your insurance company. A passenger bus was travelling from point A to Point B when it collided with a parked saloon vehicle. The accident occurred on a road that is not authorized as a passenger route. The bus swerved to avoid hitting into a wall fence but ended up destroying part of a fence of a neighbor to the owner of a parked car.The car was parked partly on the gravel road. The car will definitely require panel beating. Four kids that live at the house whose fence was partly destroyed had strayed into the road while playing football causing the driver to swerve and hit into the car. The bus owner does not accept any responsibility what so ever claiming that he did not expect the bus to operate on that as it was taken to the garage for service. All passengers escape unhurt but two passengers suffered a trauma and require hospitalization. An old woman who was resting behind the fallen fence suffered a broken leg. The neighbors are bickering over the consequences of the collision.
1. Describe what is meant by risk, peril, hazard, distinguishing clearly between the following types of hazards;
a. Morale hazard
b. Moral hazard
c. Attitudinal hazard
2. Outline the risk framework you will use to analyze the risk events.
3. From the above scenario, Give examples of direct loss, indirect loss and liability risk
4. Identify the victims, losses, hazards and perils in this case.
5. Identify remedies availabile, identifying people who can claim and state clearly the party responsible for settlement of the claim directly and indirectly
6. Give reasons to justify your assertions above
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