Insurance WAEC

Fidelity Guarantee Insurance

Bayani Gaba-gaba

Every business that handles money trusts someone with it: a cashier at the till, an accountant at the ledger, a storekeeper at the warehouse. Most repay that trust. A few do not. Fidelity guarantee insurance is the cover a wise employer buys against the one who does not, protecting the firm when a trusted employee steals, embezzles or defrauds it from the inside.

In this lesson you will learn exactly what fidelity guarantee insurance covers and the dishonest acts it answers for, the four ways a policy can be arranged (individual, collective, floating and blanket), what a bond is and why it needs three parties instead of two, and the sharp line that separates this cover from an ordinary fire or motor policy: the insurer's right to chase the wrongdoer for its money back.

Manufura

  1. Define fidelity guarantee insurance and explain the loss it protects against
  2. Describe the types of fidelity guarantee policy: individual, collective, floating and blanket
  3. Explain the nature and purpose of a bond
  4. Distinguish a fidelity guarantee policy from an ordinary insurance policy

Taswirar tunani

An zana wannan batu don ka ga yadda ra'ayoyi ke hadewa.

Katunan tunawa

Gwaji mai sauri kan abin da ake jarraba a wannan batu.

Takardar Darasi

A supermarket in Abuja loses stock and cash quietly, month after month, and the owner cannot see where it goes. An audit finally uncovers a trusted cashier who has been pocketing takings for a year. The loss is real, but it was not caused by fire, flood or a burglar breaking in. It was caused by someone the business had every reason to trust. An ordinary fire or theft policy will not answer for it, because those cover accidents and outsiders, not the deliberate dishonesty of the firm's own staff. The cover that does answer for it is fidelity guarantee insurance, and knowing how it works is worth secure marks in every WAEC Insurance paper.

Nazarin Darasi

Barka da kammala darasi akan Fidelity Guarantee Insurance. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.

Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.

Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.

  1. Fidelity guarantee insurance protects an employer against loss caused by: A. Fire damage to the business premises B. The dishonesty of an employee in a position of trust C. Burglars who break into the premises by force D. The employer's own negligence Answer: B
  2. Which of the following is NOT a type of fidelity guarantee policy? A. Individual B. Collective C. Floating D. Comprehensive Answer: D
  3. How many parties are involved in a bond? A. One B. Two C. Three D. Four Answer: C
  4. A blanket fidelity policy carries a limit of 300,000 naira per employee. A cashier is found to have stolen 450,000 naira. How much will the insurer pay? A. 450,000 naira B. 300,000 naira C. 150,000 naira D. Nothing Answer: B
  5. The feature that most clearly distinguishes a fidelity guarantee policy from an ordinary fire policy is that the fidelity insurer: A. Charges a higher premium B. Can recover what it pays from the dishonest employee C. Pays claims more quickly D. Requires no proposal form Answer: B

Littattafan da ake ba da shawarar karantawa

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Sunaƙa: Thirteenth edition
Mai wallafa: Pearson
Shekara: 2016
ISBN: 978-0-13-408257-8
Bayanan bayanin.: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Sunaƙa: Tenth edition
Mai wallafa: Wiley
Shekara: 2008
ISBN: 978-0-470-08753-4
Bayanan bayanin.: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Sunaƙa: Second edition
Mai wallafa: Himalaya Publishing House
Shekara: 2017
ISBN: 978-93-5097-079-9
Bayanan bayanin.: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Tambayoyin Sake Nazari

Kana ka na mamaki yadda tambayoyin baya na wannan batu suke? Ga wasu tambayoyi da suka shafi Fidelity Guarantee Insurance daga shekarun baya.

WAEC SSCE - Insurance - 2018

Tambaya 1 Rahoto

(a) Explain a fidelity guarantee insurance policy.

(b) List and explain the four types of policies in fidelity guarantee insurance. 
 

Bayanin Amsa

(a) Fidelity guarantee insurance policy

A fidelity guarantee insurance policy is a form of insurance that protects an employer against financial loss caused by the dishonesty, fraud, embezzlement or defalcation of his employees in the course of their employment. It indemnifies the employer for money or property lost through the infidelity of persons placed in a position of trust.

(b) Four types of policies in fidelity guarantee insurance

  1. Individual (named) policy: This covers one named employee against whose dishonesty the employer wants protection. It is used where only a particular person, such as a cashier, handles money.
  2. Collective (schedule) policy: This covers a group of named employees under one policy, each with a stated amount of guarantee shown against his name in a schedule.
  3. Floating (floater) policy: This covers a group of employees for one overall (floating) sum that can apply to any member of the group, without allocating a fixed amount to each person.
  4. Positions (blanket) policy: This covers the holders of stated positions or offices rather than named individuals, so that whoever occupies the post at the time of loss is automatically covered.
Duba Amsa