Your will be establishing / running a company in a specific sector.
You will be required to do the following:
1. Describe the activity of the company.
2. Analyze the flow of work.
3. Project the list of assets and related sum insured.
4. Decide the insurance policies to be in force.
5. Collect / Simulate insurance quotes from local insurers.
6. Determine the cost of insurance for each line and finally the total cost of insurance for your company.
put your own figures and don’t copy any balance sheet and income statement. You can take an existing company with percentage of shareholders if any. You have to change the numbers in the balance sheet. Contact the insurance company and ask for the desk code (coutation ) . What type of insurance policies must be applied? i.e. to be specified type of insurance (Goods or services).
1) Establish your group project and select either good or Service Company. Who is the shareholders? 3 to 5 years balance sheet/loss of income and the starting date of the insurance and the name of company. Like SALAMA, TAKAFUL, OMAN…etc.
2) Description of the activities: Flow of work: Financial balance sheet: cars….furniture…PC (current asset and liabilities). Note, (Depreciation is not an insured risk). The balance sheet should show the historical values, sum insured, insurance rate….. . Bases of evaluation should include all assets (Building, Furniture…. Excluding the machines). The sheet must include the historical value and the insured value. Example
Historical value Sum Insurance Insurance rate
Building
Equipment
Furniture
fixtures
Note: Case of evaluation. All assets can be replaced, cash flow.. etc except machines we have to use replacing type.
The cover of insurance of the following:
1) Fire and allied perils( fire, lightning, explosion)
2) Business intte(BI)
3) Equipment breakdown (explosion, electrical , mechanical, excluded by fire policies)
4) Marine cargo insurance (open cargo, before or after or during the production) type of transportation (ocean, inland, air) number of track and who will driver.
5) Cash
6) Motor
# premium payment: payment after one month and include this month in the insurance.
3) For A students, multiple code of different companies is required for comparison, desk code and written code as example from existing companies,
4) BI (Business Interruption):- Gross Profit, Gross revenue and loss in production (GOP, Gross of operation) from the income statement. Insurance statement is required. The deductible in BI must be expressed in number of days cover for 6 month.