Question

INSTRUCTIONS: Only the answer is needed. No supporting sources required.

Q4. Explain the procedure followed by a property insurance agent for claims after theft of jewelry from a house.

Q5. Explain two (2) main shortcomings that property managers can expect because of Electronic Information Systems.

Answer 1

Q4. Explain the procedure followed by a property insurance agent for claims after theft of jewelry from a house.

Answer: The insurance claim process typically involves five main stages, from the moment you report your loss to the resolution of your claim.

1. Notification of incident, loss or damage: When loss or damage under the insurance policy occurs, the insured should notify us of the incident as soon as possible.
   Any loss or damage caused by theft/burglary must be reported to the local police precinct. A copy of the police report should also be obtained to be produced as evidence for the claim.
2. Protection of damaged property: The insured should take photographs of the damaged property before having any necessary repairs to mitigate the loss or damage. All pertinent evidence must be kept as close to the original state as possible so that our surveyor/claims assessor can detect the damage. In the event that the loss of or damage to the insured’s property was caused by a third party, it is advised that the insured sends such third party a written claim for damages, with a copy to us.
3. Repair or replacement of damaged property: The insured should put forward to us, for consideration and agreement, any quotations for repair/replacement of the damaged parts before proceeding with the purchase or repair.
   However, if necessary, the insured may proceed with the repair of the damaged property to ensure its safety or to prevent possible continuing or further damage.
4. Surveying of damage: Where full, detailed surveying of damage is required, we may either undertake the surveying ourselves or assign a surveyor/loss assessor to call the insured and arrange a damage survey at a time and date of the insured’s convenience.
5. Preparation of claims documents: In order to speed up the claims process and ensure claims are accurately and thoroughly arrived at, the insured is requested to prepare the following documents for us and/or for the surveyor/claims assessor:-

• Notification of loss or damage;
• Accident report with photographs of damaged property;
• Items and costs of loss or damage with relevant documentation, e.g. purchase receipts, warranties or instruction booklet indicating the brand and model of the damaged product;
• Copy of police report obtained from the police precinct in which the incident occurred;
• Claim note of the other party;
• Copy of the insured’s claim for damages against a third party.

Q5. Explain two (2) main shortcomings that property managers can expect because of Electronic Information Systems.

Answer: Following are the two main shortcomings that the property managers will face because of Electronic Information System:-

• Unemployment and lack of job security:– Implementing the information systems can save a great deal of time during the completion of tasks and some labor mechanic works. Most paperwork’s can be processed immediately, financial transactions are automatically calculated, etc. As technology improves, tasks that were formerly performed by human employees are now carried out by computer systems. For example, automated telephone answering systems have replaced live receptionists in many organizations or online and personal assistants can be good example also. Industry experts believe that the internet has made job security a big issue as since technology keeps on changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure.
• Security issues:– Hackers get access to identities and corporate saboteurs target sensitive company data. Such data can include vendor information, bank records, intellectual property and personal data on company management. The hackers distribute the information over the Internet, sell it to rival companies or use it to damage the company’s image. For example, several retail chains were targeted recently by hackers who stole customer information from their information systems and distributed Social Security numbers and credit card data over the Internet.