Page 35 - CFPA-SCR-Award in General Insurance W01_2018-19_Neat

Chapter 1 Risk and insurance 1/17 Chapter

• Commercial package policies are marketed under a variety of trade names and designed to provide a 1
range of covers automatically for particular trades, e.g. shopkeepers, hoteliers, hairdressers. The cover
is relatively inflexible and it would not be possible to exclude different sections. The packaging has
been carefully researched so that the majority of those in the particular trade are catered for at
favourable rates.
• Commercial combined policies provide comprehensive business cover in a single policy and are
primarily for small businesses, engineers, manufacturers and wholesalers. A cost-effective way to
safeguard all aspects of business risk and tailored to individual company needs, commercial
combined policies typically include cover for burglary and theft, employers’ liability, public and
products liability, business interruption, stock and goods in transit and money either held on the
premises or by an authorised employee.

L8 Health insurance

There are a number of different types of insurance related to the health of a person:
• Personal accident: cover in the event of accidental death or injury.
• Sickness: cover for an inability to work due to sickness.
• Medical insurance: cover for individuals who seek medical treatment when they are ill.
• Payment protection indemnity: fixed benefits for individuals who suffer an accident, are ill or lose
their jobs. Benefits are usually geared to known outgoings such as mortgage repayments, but may
include more general expenses.
• Critical illness: cover in the event of the diagnosis of a defined range of serious illnesses.

Sample examination question 2
Insurance cover can usually be purchased to protect against:
a. an investment loss on the stock market. F
b. dishonesty of an employee. F
c. failure of a business venture. F
d. war damage to a domestic property. F