2.

Evaluate the potential losses

After analyzing the frequency and severity of risks, found that severity is high in medical
health insurance helps people to pay their bills for certain illnesses or from suffer injury for this loss
happened to employees in workplace. In logistics company like Elite Logistics Sdn Bhd they would
think to consider the risk they will face. There are most of the risk often receive by logistics
company which are injury and accident when working. Sometimes this risk involves life until the
employee dies, and the employer must be responsible to the incident due to happened on working
hours. In operating, it involves use of machine that a lot of cases until they become disable cause of
losing their body parts. The possibility to occur are high that is why the severity is high because
anyone can get injured if negligence occurs especially by maintenance. Each of person in this
company are risking to any accident that requiring treatment and medicine. The medical health
insurance plays a role to bear the bills and all side effect on employees. Their health and sick will be
the company responsibility to concern for. This insurance helps people in need especially after
accident that cause them unable to work and have income, this insurance at least can cover for their
treatment and needs. This is because all employees have the right to get their compensation after
risking their when working and got minor injury or more.

Most of company now seen prefer to have medical health insurance for the employees, this
convincing employee that their life and employment are safe and guaranteed. According to the
reference, employee tends to involve in accident in a year in every company are a few times and this
shows that the frequency of hazard or harm there are moderate. It is because likely to occur
sometime in every company and not every month will happen but anyone in company is the
potential to get injured. As employer, they must learn and evaluate the consequences in operating
department will be faced by employees. Instead of safety suit, boots, glove and others, the
insurance helps the part the company cannot do for the employees for the cost of hospitality or
clinic that quite pricey. For instance, deadly trapped in a rotating object, accident involving lorry
when delivering, losses of body parts and many more. The effects to be faced is probably they might
not be able to work for long or until forever or get died. After the accident, the operating process
will slow than before cause lack of operator that supposed to do their part every day so other people
will do multiple job to continue the process as usual. Therefore, employer should choose the most
coverage insurance even it is not often occurred for everyone in company’s welfare and lifetime that
help in heavy risks especially.