Handalan Motor Corporation are exporting manufactured goods to United Kingdom, Poland and Japan. Upon arrival, it is reported that some of the goods are damaged during the voyage. The net worth of the shipment and net loss suffered are given as follow:

The company insured the goods by buying marine cargo insurance to minimize the losses with RM1,500 of straight deductible with 12 percent of coinsurance and policy limit of RM5,250.

Based on the information above, calculate:

i. Expected amount paid by insurer for each country.

(10 marks)

ii. Correlation coefficient between Japan and United Kingdom.

(7 marks)

iii. Handalan Motor Corporation owns three buildings; Millennium in Japan, Varso in Poland and The Shard in United Kingdom that valued at RM4,088,000, RM4,980,200 and RM5,130,500 respectively. Therefore, the company purchased RM4,800,900 for Varso and The Shard while RM3,980,800 for Millennium in property insurance on the buildings and the property insurance contract an 84 percent coinsurance clause. Calculate the insurance-to-value of property for each building if the losses are RM1,903,800 for Millennium, RM2,009,500 for Varso and RM2,697,700 for The Shard.

Answer rating: 100% (QA)

i Expected amount paid by insurer for each country United Kingdom Gross shipment value RM5250 Deduct... View the full answer