Tài liệu Unit 11 - Insurance Coursebook slideshow - By Nguyen Ngoc Dat ppt

Some new DefinitionsInsurance policy: An insurance contract covering a particular risk, and the document that gives details of this Claim: Request for payment for damage, injury, theft,

Academy of Finance

Division of English for Finance and Accounting

Subject: English Skill: Speaking

Teacher: Xuan Phan

Group: OMG Slide No.1

Hanoi 2013

1

UNIT 11

INSURANCE

Participants:

 Thi Tra Van Nguyen

 Anh Dao Hoang

 Tam Long Hoang

 Tuan Nam Nguyen

 Ngoc Dat Nguyen

Honesty is the best policy

Main parts:

When do you think about insurance ?

Some of the most special cases in insurance industry

Keith Richards – One of the founders of the Rolling stones band - and

his 1.600.000 USD

finger

Merv Hughes and the mustache worth 370.000 USD

Ilja Gort – A wine smeller - spent 8.000.000 USD to get his nose

insured

Egon Ronay – one of the most famous international food expert –with his

353.000 USD tongue

What is Insurance ?

Basic Definition

 Insurance is the equitable transfer of the risk of a loss, from one

entity to another in exchange for payment It is a form of riskmanagement primarily used to hedge against the risk of a contingent, uncertain loss

Some new Definitions

Insurance policy: An insurance contract covering a particular

risk, and the document that gives details of this

Claim: Request for payment for damage, injury, theft, ect, for which you are insured

Premium: the amount paid for insurance during a particular period of time (year, quarter).

Compensation: the amount of money you receive when something

unexpected happens, according to the insurance contract’s terms

Damage: Physical harm caused to something.

Risk: The posibility of a particular type of damage against which you are covered

The Relationship Between Customer And Insurance Company

Insurance Company Customer

Premium

Contract Terms

Insurer Insured

Policyholder

???

???

Differentiate Policyholder and The Insured

Definition: Policyholder is the person who holds the insurance

Policy

 The Insured is the person who is insured

Explanation: Policyholder makes a deal and signs an insurance

contract He/she takes responsibility for the contract’s terms

 The insured receive compensation when something unexpected happens, according to the contract’s terms

Note: Sometimes, the policyholder and the insured are the same

Why do we need insurance ?

 We always want to be safe, but life is full of risks which we can not guess or predict These risks may come from:

 Natural Environment: Storms, floods, earthquake, famine, drought…

 The Progress and Development of Science and Technology:

That is good for human’s life However, that cause several unexpected accidents such as: car crash, airplane explosion, nuclear contamination…

 Social environment: Unemployed, social evils, inflation…

 Special demand: Singers’ voice, guitarists’ fingers, models’ body, Ice-cream tasters’ tongue…

Type of Insurance:

1 Insurance protects business owners from certain losses including injured workers and damage to equipment and buildings

2 Insurance provides protection in the event of a death Payment is made to the nearest relative or other named beneficiary

3 Insurance protects against financial losses if you have an accident Cover includes medical expenses Your car

is also protected against fire and theft

4 Insurance can cover fire, weather-related destruction and other losses The policy covers the cost of labor, materials and services necessary to replace or repair building damages

Commercial

Life

Auto

Home

Insurance Company’s Structure

a

Manager

Take care of general adminis-tration Manage staf

Handle online and

Take decision

on special cases

Agree to accept

a risk or not

What is insurance fraud ?

Fraud: A method of getting money illegally from a person or organization often in a clever way.

Insurance fraud: The method of getting money illegally from an insurance company in a

clever way

Some examples:

 Being dishonest about the value of your financial losses

 Making a dishonest claim for an injury you do not have

 Lying about how much cash was in the wallet you lost

 Telling lie about the cost of a car that was stolen

 Making a illegitimate for items destroyed by fire

 Claiming that the repair cost was more expansive than it really was

Why are people fraudulent ?

 The “chief motive” in all insurance crimes is “financial profit”.

There are two main causes:

Many people know that they will receive a big amount of money from the insurance company if they make a fraudulent claim about themselves

Fraudsters realize that it is much more easier to enrich by being dishonest than to work hard in factory

 Insurance laws are not strict enough to stop insurance crimes !

Different countries have different Insurance policies and laws, but they are all not too strict.

In fact:

 Almost insurance crimes are just considered as economic crimes That means insurance

fraudsters just have to pay a particular amount of money to the insurance company if their claim was found to be dishonest by the insurance company’s detective

 Only few of a small number of insurance crimes are brought to the court And, of course, the

sentences they receive are up to the serious level of their crimes

Terrible Facts:

Insurance fraud costs American $80 billion a year - $950 per family This is not just of large – scale fraud –

every day -customers also contribute to the loss by dishonesty claims

 Many Insurance company may get a big lost

 Some smaller company may go bankrupt

What should they do ?

Fighting fraud Stop insurance crimes

But How ???

Insurance companies bring two kinds of Lie Detector Machine into use They are:

 LVA - Layered Voice Analyzer.

 VRA - Voice Risk Analyzer.

Theoretically, two kinds of Lie Detector System measure micro tremor in the voice to determine the

emotional state of the speaker This will leads us to two cases:

 If the speaker’s emotional state is steady, the claim seems to be OK.

 If the speaker’s emotional state changes(nervous, moved, worried…), there must be something suspicious in the claim and the insurance company will conduct a further

investigation.

How LVA & VRA work

OK

Suspicious

Surprising Results

Before the Lie Detector telephone technology is brought into use, many UK insurance thought that only 5% of

claims for auto theft were fraudulent However, with VRA, the company is now able to identify that nearly

one of five auto theft claims are fraudulent It can be said that LVA & VRA save many insurance companies

which are on the edge of bankrupt

For example: Highway insurance – An UK insurance company- has now saved £3 million thanks to the VRA

The fact is: Almost fraudsters withdraw their dishonest claims when they hear that the insurance company will investigate them If so, the insurance company will take no action

Honesty is the best policy

 Honesty is the best policy I suspect most of you have heard this phrase at least once in your life, if not

more

 Honesty and truth can, on occasion, be hard Sometimes we don’t tell the truth because we don’t want to

hurt the other person’s feelings Sometimes we just don’t see the value in being honest: it’s not worth

the effort – the person you’re talking to doesn’t want to hear the truth Other times we don’t feel it’s

safe to tell the truth – don’t hurt the messenger But it’s in real life – in a wide-range situation- the social

situation, especially when the lie is useful.

 So what does this mean in insurance industry ??? To the fraudsters dishonesty brings them profit

They force themselves say anything that makes profit- the more, the better They don’t care (much) about what they say as long as that gives them money That also means fraudsters see the financial value in their dishonest claims

 To Insurance company, Honesty is much more precious than money or a big insurance contract They

really need a policy called “honesty” So why ? – because just a simple thing: they can use the time

wasted on stop fraudsters to earn much more money from honest people Why ?

Telling lie is more useful.(illegal profit)

 Take an example: Highway insurance – A UK insurance company has wasted £3 million per year on fraudsters(fraudulent claims) -including the money spent on installing the VRA system - before using this.

Besides, they can use the time and the money investigating suspicious claims (in fact) to sign many insurance contracts and make profit from them.

You should always tell the truth, even when sometimes it’s more useful to tell a lie.

 Lie Detector Technology can not find out all fraudsters no matter how modern it is

 For insurance companies, it’s unfair that they have to pay for what fraudsters created or stretched

 If insurance fraud go on and go on, many insurance company will go bankrupt, the insurance industry

will be no more someday, that’s why in insurance, HONESTY IS THE BEST POLICY.

Thank you !

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