A. Insurance Needs and Products
Risk is the possibility of something adverse or bad happening. Buying insurance is a way of spreading risk and various insurance products can be bought to provide financial protection.
List the most common insurance products an individual or a family can buy (3 marks).
B. Reem 22 years old has a budget of AED 200,000. And looking to buy a motor vehicle (car or 4x4) in the UAE. Which one would you like to buy?
B1. Specify make, model and actual purchase price of the car (3 marks)
B2. Research any two organizations operating in the UAE offering motor insurance. Check out the premiums and obtain quotations from both these organizations for third party and comprehensive insurance cover for your car (2+2+2+2 =8marks).
B3. List and explain the differences between the price and features of third party and comprehensive insurance cover from both organizations (4+4+4+4 =16 marks).
B4. Which insurance cover would you choose for your car? Give and explain reasons for your choice (8 marks).
PLEASE NOTE: For the purpose of obtaining a quotation you can make assumptions about the person driving the car, for example, aged 25 years or over, UAE driving license held for a year or more.
DO NOT MAKE ANY ASSUMPTIONS ABOUT THE CAR MAKE, MODEL AND PRICE. THESE DETAILS MUST BE REAL.
C. Marwa Mohammad takes a holiday every year with her husband and two young children. She never takes out travel and holiday insurance. She is of the opinion that holiday insurance is a waste of money as she never had any problems on a holiday.
Do you agree with her? Write a review of her opinion and express your thoughts about travel and holiday insurance (8 marks)
D. The insurance industry in the UAE has shown growth in the last few years but is still small and immature. It is mostly dependent on the car and health insurance.
D1. Analyze the above statement. Give your opinion why the use of other insurance products is minimal in the UAE (7 marks)
D2. What insurance companies can do to persuade people in the UAE to buy other insurance products? (7 marks)
E. Investment Needs and Products and Retirement Planning.
People have a wide variety of products to choose from when they make their investment decisions. The choice made is based on various factors like expected return and the risk involved.
You are an investment advisor. Write a detailed report for your client who is considering investing in shares (5+5+5+5 =20 marks)
Include in your report:
· What are shares?
· Reasons for change in price of shares.
· Can there always be a regular income from owning shares.
· How to reduce the risk of a capital loss when you invest in shares.