Archive / Investment Adviser (Level 2) / Non-Life Insurance Products

nism-series-xb-property-claim-reimbursement-higher-copay-15-percent[ INVESTMENT ADVISER (LEVEL 2) ]

In Giri's property insurance scenario, the claim is Rs. 50,000 and compulsory deductible is Rs. 10,000. If the policy co-pay was 15% (instead of 5%), how much would the insurance company reimburse?

[ A ]Rs. 32,500

[ B ]Rs. 34,000[ CORRECT ]

[ C ]Rs. 38,000

[ D ]Rs. 40,000

Takeaway

With co-pay raised to 15%, the insurer reimburses Rs. 34,000 of Giri's Rs. 50,000 claim after the deductible and higher co-payment are applied, so option B is correct.

Derivation

Admissible claim after deductible = Rs. 50,000 - Rs. 10,000 = Rs. 40,000 (unchanged from the original 5% co-pay scenario). Co-payment at the revised 15% = 15% of Rs. 40,000 = Rs. 6,000. Net reimbursement = Rs. 40,000 - Rs. 6,000 = Rs. 34,000. This is a direct sensitivity variant of the original Giri question, testing whether candidates correctly re-apply a changed co-pay percentage to the same admissible base rather than recalculating the deductible step, which stays identical.

Why the others fail

A — Rs. 32,500

Applies the 15% co-pay to the gross Rs. 50,000 claim (Rs. 7,500) and then separately re-adds the Rs. 10,000 deductible, an incorrect order and combination of the two mechanisms.

C — Rs. 38,000

This is the reimbursement figure under the original 5% co-pay scenario, not the revised 15% co-pay being asked about here.

D — Rs. 40,000

This is the admissible claim amount before the 15% co-payment is subtracted, i.e. the deductible step alone without applying the co-pay.