Ulasan Buku Panduan TBE .. haruskah

tetiba terfikir untuk buat ulasan chapter by chapter Buku TBE yang sering digunakan oleh candidate utk peperiksaan takaful Asas. TBE .. haruskah saya berbuat demikian .. jika ramai yang mohon , komen di post ini..insyaAllah sy bersemangat lah skit nak buat .. boleh lah sy cuba huraikan chapter by chapter secara mendalam ... sedalam yang saya tahu...saya cuba!

Kedekut danbayar tak bertempat

Perlindungan insurans untuk harta benda( kereta ) boleh pula beli . Sayangkan harta lebihkan daripada sayang keluarga dan diri sendiri.

Imagine begini , kereta awk bayar insurans tahunan, ada yang cecah ribuan ringgit + cukai jalan . Awak sanggup bayar , alasannya awk nak pakai kereta tu. Tapi insurans utk badan sendiri , awk tak sanggup, alasan, alah.. awk tak akan kena penyakit sebab awk tak makan itu ini , gelojoh , kurang lemak ... lagi, sebab awk kata, awk tak akan accident tahun ni .. sapa boleh tau hal ni semua? saya juga maksudkan insurans utk keluarga anda. tak sayang mak ayah , tak sayang anak anak , adik adik dan keluarga handai.. kereta , motor 2 ,3 biji boleh/sanggup bayar insurans..

so, bawa2 pikirlah, antara kereta dan orang tersayang termasuklah diri sendiri ( badan ni nak guna utk ibadah kepada Allah, kalau dah sakit cam ne nak ibadah dengan banyak dan tenang sebab bilamana nak kena keluar kerja juga untuk dapatkan duit bagi menampung kos rawatan diri sendiri atau pun keluarga.

Awk kedekut tak bertempat

Construction of Mortality Table

Construction of Mortality Table

In the construction of a mortality table, the investigations which are undertaken are designed to yield at each age, x, the rate of mortality , that is, the probability that a life age x will die within a year. The two principle sources of life tables are general population statistics obtained from census and the mortality records of life insurance companies.

An initial age is chosen and a convenient number of lives is assumed to exist at that precise age. This number, called the radix, is usually a round number such as 1,000,000 or 10,000,000. The mortality rate is applied to this number of lives to get the number that will die at this age. Hence the number of lives (survivors) at the next age is obtained by reducing the radix by this number of deaths.

The number of survivors of the original group (radix) who have now attained age x is designated by . The number of persons in the group who die after attaining age x but before reaching age x+1, is represented by .

Thus :

Lx+1 = Lx-dx where dx = Lxqx

The 1980 Commissioner’s Standard Ordinary Mortality Table (1980 CSO Table)

Male				Female
Age	Number living	Number dying	Mortality rate per 1000	Number living	Number dying	Mortality rate per 1000	Age
0	1,000,0000	41 800	4.18	1,000,0000	28 900	2.89	0
1	9,958,200	10 655	1.07	9,971,100	8 675	.87	1
2	9,947,545	9 848	.99	9,962,425	8 070	.81	2
3	9,937,697	9 739	.98	9,954,355	7 864	.79	3
.	.	.	.	.	.	.	.
25	9,663,007	17 104	1.77	9,767,317	11 330	1.16	25
26	9,645,903	16 687	1.73	9,755,987	11 610	1.19	26
.	.	.	.	.	.	.	.

The symbol means the probability that (x) will live to reach age x + n. Out of the persons alive at age x there are survivors at age x + n. Thus

npx = Lx+n / Lx

Risk in Insurance / takaful .....part 2

Insurability of specific risks

Insurance is sold on a case-by-case basis. Insurance companies consider a number of factors in order to determine whether a proposed risk is an insurable risk.

The people who are involved in the creation and operation of an insurance policy:

Applicant – The person or business that applies for an insurance policy

Policyowner – The person or business that owns an insurance policy

Insured – The person whose life is insured under an insurance policy

Policyowner-insured – The person who is both the policyowner and the insured

Third-party policy – An insurance policy that one person or business purchases on the life of another person

Beneficiary – The person or party the owner of an insurance policy names to receive the policy benefit if the event insured against occurs

Insurable interest requirement

• Only pure risks are insurable.

• Insurance is intended to compensate an individual or a business for a financial loss, not to provide an opportunity for gain.

• To prevent people from using insurance policies as means of making wagers (gambling by purchasing policies on lives of people who were completely unrelated to them and created a possibility of financial gain if the insured died), the government passed law that when an insurance policy is issued, the policyowner must have an insurable interest in the risk that is insured. The policyowner must be likely to suffer a genuine loss or detriment should the event insured against occur.

• An insurable interest exists when the policyowner is likely to benefit if the insured continues to live and is likely to suffer some loss or detriment if the insured dies.

• If the insurer determines that the proposed policyowner does not meet the insurable interest requirement, then the insurer will not issue the policy.

• All persons are considered to have an insurable interest in their own lives.

• Insurable interest laws do not require that the named beneficiary have an insurable interest in the policyowner-insured’s life. A policyowner-insured can name anyone as beneficiary.

• Most insurance company underwriting guidelines require that the beneficiary also must have an insurable interest in the life of the insured when the policy is issued.

• In a third party policy, both policyowner and beneficiary must have insurable interest in the insured’s life when the policy is issued.

• Certain family relationships are deemed by law to create an insurable interest between an insured and a policyowner or beneficiary – natural bonds of love and affection and financial dependence

• Spouse, mother, father, child, grandparent, grandchild, brother and sister

Assessing the degree of risk

• Not all individuals of the same sex and age have an equal likelihood of suffering a loss

• Antiselection, adverse selection or selection against the insurer – the tendency of individuals who believe they have a greater-than-average likelihood of loss to seek insurance protection to a greater extent than do those who believe they have an average or less-than-average likelihood of loss

• Underwriting or selection of risks – the process of identifying or classifying the degree of risk represented by a proposed insured.

• Two primary stages of underwriting:

• Identifying the risks that a proposed insured presents

• Factors that can increase or decrease the likelihood that an individual will suffer a loss

• Physical hazard – a physical characteristic that may increase the likelihood of loss

• Moral hazard – the likelihood that a person involved in an insurance transaction may act dishonestly in that transaction

• Classifying the degree of risks that a proposed insured presents

• To enable the insurer to determine the equitable premium rate to charge for the requested coverage

• Standard risks - the risk category that is composed of proposed insureds who have a likelihood of loss that is not significantly greater than average and are charged standard premium rates

• substandard risks - the risk category that is composed of proposed insureds who have a significantly greater than average likelihood of loss and are charged substandard premium rates or special class rates

• declined risks - the risk category that is composed of proposed insureds who are considered to present a risk that is too great for the insurer to cover.

• preferred risks - the risk category that is composed of proposed insureds who present a significantly less than average likelihood of loss and are charged lower than standard premium rate

• Underwriters – the insurance company employees who are responsible for evaluating proposed risks.

Risk in Insurance / takaful .....part 1

The concept of risk

Risk exists when there is uncertainty about the future

There are two major type of risk:

• Speculative risk – involves three possible outcomes: loss, gain, no change.

• Pure risk – a risk that involves no possibility of gain.

Pure risk involves possibility of economic loss without the possibility of economic gain - is the kind of risk that can be insured.

The purpose of insurance is to compensate for financial loss, not to provide an opportunity for financial gain.

Risk Management

The practice of risk management involves identifying risk, assessing risk, and dealing with risk.

In order to eliminate or reduce our exposure to financial risk, we can ….

• ‘Avoid risk’ – by staying away from the risk. This is sometimes not effective or practical.

• ‘Control risk’ – by taking steps to prevent or reduce losses. In other words, reduce the likelihood of a loss or lessen the severity of a potential loss.

• ‘Accept risk ‘– by assuming all financial responsibility for that risk as in self insurance.

• ‘Transfer risk’ – by shifting the financial responsibility for that risk to another party, generally in exchange for a fee by purchasing insurance coverage. Life insurance companies sell insurance policies to provide financial security from personal risk – the risk of economic loss associated with death, poor health and outliving one’s savings.

• ‘Share risk’ with the community through cooperative and mutual protection as in al-takaful or khairat.

Managing Personal Risks through Insurance

Insurance companies use the concept known as risk pooling – losses are shared by large numbers of people who are all subject to such losses and the probability of loss is small for each person resulting in the cost to each person being relatively small.

Characteristics of insurable risks

Risks that can be insured must satisfy the following category.

• The loss must occur by chance (cannot be totally predictable or controlled).

• Death is certain to occur rather than by chance but the timing of death usually occur by chance.

• The loss must be definite (the insurer must be able to determine when to pay policy benefits and how much the benefits should be).

• Time (when) and amount (how much).

• Contract of indemnity – the amount of policy benefit payable is based on actual amount of financial loss that results from the loss (determined at the time of loss) or on the maximum amount stated in the contract, whichever is less;

• Valued contract – specifies the amount of benefit payable when a covered loss occurs, regardless of the actual amount of the loss incurred – face amount or face value.

• The loss must be significant (the insured generally must suffer financial hardship as a result of the loss).

• Losses that cause financial hardship to people.

• The loss rate must be predictable (the insurer must be able to predict with reasonable accuracy the number and timing of covered losses that will occur in a given group of insureds).

• The rate at which covered losses are expected to occur in a specified group of insureds.

• The law of large numbers states that, typically, the more time we observe a particular event, the more likely it is that our observed results will approximate the ‘true’ probability that the event will occur

• Mortality tables – charts that display the incidence of death, by age, among a given group of people.

• Morbidity tables – charts that display the incidence of sickness accidents, by age, occurring among a given group people.

• The loss must not be catastrophic to the insurer (the insurer must not be subject to catastrophic financial damage as a result of the loss).

• ‘Reinsurance’ – a type of insurance that one insurance company purchases from another insurance company in order to transfer risks on insurance policies that the ceding company issued. When a covered loss occurs, the reinsurer reimburses the ceding company for the portion of the loss that was reinsured;

• ‘Cede’ – to obtain reinsurance on insurance policies by transferring all or part of the risk to reinsurer

• ‘Retention limit’ – the maximum amount of insurance that an insurer is willing to carry at its own risk on any one life