WAEC Commerce 2016 Theory — Question 4

Model answer

(a) Marine Insurance: Marine Insurance is a type of insurance that covers cargo (goods) losses or damage caused to ships, cargo vessels, terminals, and any transport in which goods are transferred or acquired between different points of origin and their final destination. It involves insurance on water transportation. (b) Accident Insurance: Accident insurance is a type of insurance where the policy holder is paid directly in the event of an accident resulting in injury of the insured. (c) Group Insurance: Group insurance is an insurance that covers a group of people, for example the members of a society or professional association, or the employees of a particular employer for the purpose of taking insurance. (d) Fidelity Guarantee Insurance: Fidelity Guarantee Insurance is the insurance undertaken by an employer against the dishonesty that may occur from his employees. (e) Consequential Loss Insurance: Consequential loss coverage reimburses the insured for business costs due to damaged facilities or equipment. For example, business interruption insurance can cover situations that result when the loss of revenue occurs due to events such as an extended power outage, a flood, or a mudslide.