1. HOW TO CALCULATE A PREMIUM FOR LIFE INSURANCE :
1.1. premium = face value/RMx x (premium rate per RMx)
2. HOW TO CALCULATE A PREMIUM FOR MOTOR INSURANCE :
2.1. calculated based on the Motor Tariff that provides the minimum premium for the insurance coverage.
2.1.1. for peninsular Malaysia , the basic premium = rate for the first RM1000 or part thereof on value exceeding the first RM1000
2.1.2. for Sabah and Sarawak , the basic premium = rate for the first RM1000 + RM20.30 for each RM1000 or part thereof on value exceeding the first RM1000
3. DEDUCTIBLE
3.1. amount that must be borne by the policyholder before they can make a claim from the insurance company
4. CO-INSURANCE
4.1. CO-INSURANCE IN PROPERTY INSURANCE : the cost of sharing of the loss between the insurance company and the policyholder.
4.1.1. amount of required insurance = percentage of co-insurance x insurable value of property
4.2. CO-INSURANCE IN HEALTH INSURANCE: stipulated by the percentage participation clause, particularly for the major medical insurance policy.
5. RISK is the possibility of a disaster that cannot be avoided.
5.1. The importance elements in the definition of risk : unpredictable and involves loss
6. INSURANCE is intended to transfer risks from individuals to insurance organisations.
6.1. Life insurance guarantees the payment of a stated amount of monetary benefits to the policyholder upon the death of the insured, or under other circumstances specified in the contract.
6.2. General insurance provides coverage against any loss or damage incurred , apart from the risks covered by life insurance.
6.2.1. Medical and health insurance
6.2.2. Motor insurance
6.2.3. Fire insurance
6.2.4. Personal accident insurance
6.2.5. Travel insurance
6.3. Group Insurance provides coverage to a group of individuals , typically employees in a company or pupils in schools and students in educational institutions.
6.3.1. ORGANISATION : financial protection is provided in the events of death , disability , hospitalisation ,and surgery under certain policy and coverage limit.
6.3.2. PUPILS : financial protection is provided to pupils in the event of death , paralysis , disability and wheelchair allowance under certain policy and coverage limit.