CMFAS PGI Personal Accident Insurance question: use of pre-set percentages in the disablement scale make settlement objective and certain

CMFAS PGIPersonal Accident Insurance

Why does the use of pre-set percentages in the disablement scale make settlement objective and certain?

A Because insurers may revise the percentages after each claim to reflect actual cost
B Because the insured must still prove actual financial loss before the scale is applied
C Because once the disablement type is established, the benefit follows from the schedule
D Because the scale pays the full capital sum for every type of permanent disablement

Show the answer and explanation

Answer: C. Because once the disablement type is established, the benefit follows from the schedule

The pre-set percentages make settlement objective and certain: once the type of disablement is established, the benefit follows automatically from the schedule rather than from any assessment of the insured's actual financial loss.

Common mistake

Assuming certainty still requires proof of actual loss, which the scale removes.

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CMFAS PGI Personal Accident Insurance question: use of pre-set percentages in the disablement scale make settlement objective and certain

Answer: C. Because once the disablement type is established, the benefit follows from the schedule

Common mistake

Related CMFAS PGI questions

CMFAS PGI Personal Accident Insurance question: use of pre-set percentages in the disablement scale make settlement objective and certain

Answer: C. Because once the disablement type is established, the benefit follows from the schedule

Common mistake

Related CMFAS PGI questions