INSURANCE AND RISK MANAGEMENT ASSIGNMENT

Submitted To: Miss Maryam

Submitted By: Misbah Jamil
Roll No: E18MBA048

1. Who decides the method of indemnity after the loss?

Ans. Insurer decides the method of indemnity after loss. Decision taken by the
insurer is according to the terms and policies signed by both parties (insurer and
insured). He has the option to replace, repair or receive cash payments.

2. What is the example of the type of insurance claim where insurers usually opt
to provide indemnity by repair?
Ans. Car Accident Insurance Policy is one of the type of insurance policy where
insurers usually opt to provide indemnity by repair. The insurer decides what
repairs he wants to claim.

3. What is the maximum amount that could be paid as measure of indemnity

under a property policy?
Ans. In property loss, only the actual loss could be paid as measure of indemnity under
property policy. In order to avoid fraudulent cases (arise because of greed of extra
amount) only actual loss is paid.