Fig. 1 shows the claim process used by an insurance company after a café reports a kitchen fire. The café owner must follow the steps in the correct order s...
Question 1 Report
Fig. 1 shows the claim process used by an insurance company after a café reports a kitchen fire. The café owner must follow the steps in the correct order so that the insurer can assess the loss and decide whether to pay.
(a) Complete the following sequence from Fig. 1: fire occurs, ________, insurer assesses the claim. [2]
(b) Identify two pieces of evidence the café could send to the insurance company. [2]
(c) Explain why the insurer may refuse a claim even when the café has paid its premium. [2]
Answer Details
(a) The missing step is to report the claim to, or notify, the insurance company [2]. The insurer needs the claim to be reported before it can investigate the fire and assess the loss.
(b) Two valid pieces of evidence are photographs of the fire damage [1] and purchase invoices or receipts for damaged equipment or stock [1]. A fire report or stock records would also be acceptable because they help verify what happened and the value of the loss.
(c) Paying a premium does not guarantee that every loss will be paid. The insurer may refuse the claim if the fire loss is excluded by the policy [1], or if the café has failed to meet a policy condition, or gave incorrect information [1]. Check exclusions and conditions before relying on insurance cover.
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