Chapter 7

Question 1

Give an example of how a helpline may be used in respect of travel insurance.

Answer 1

The most common use of a helpline in travel insurance is in respect of emergency medical service. A policyholder is usually provided with a card containing a 24-hour helpline number that they would use and the company would then arrange treatment or repatriation, as appropriate.

Question 2

With what type of insurance are approved repairers most commonly used?

Answer 2

Approved repairers are most commonly used in motor insurance. Most insurers have a countrywide network of such repairers.

Question 3

How is risk management defined?

Answer 3

Risk management can be defined as the identification, analysis and economic control of those risks which can threaten the assets or earning capacity of an enterprise.

Question 4

What are the two main components in controlling risk?

Answer 4

The two main components of risk control are:
• physical control measures of the risk; and
• financial control measures of the potential loss.

Question 5

What is an ‘uninsured loss’?

Answer 5

An uninsured loss is any loss that is not covered by insurance and can range from a simple policy excess to extensive personal injury.