ISR3701
Assignment 3 Semester 1 2025
Unique Number:
Due Date: 14 April 2025
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
An insured vehicle (comprehensively insured) collides with a pole and sustains
damage to the front bumper, bonnet, radio, and windscreen. The insured submits a
claim of R25,000. The excesses are as follows:
Basic: R2,000
Windscreen: R500
Radio: R250
What is the correct insurer’s settlement amount?
a. R25,000
b. R23,000
c. R22,250
d. R22,500
Explanation: Total excess = R2,000 (basic) + R500 (windscreen) + R250 (radio) =
R2,750. Therefore, R25,000 - R2,750 = R22,250.
QUESTION 2
A client offers tourist transport services across Southern Africa and asks if
passenger liability cover is still necessary since the Road Accident Fund (RAF)
provides compensation.
Which advice is most appropriate?
a. It is necessary, as the buses operate across borders, where the RAF would
not apply.
b. The client does not need passenger liability cover since passengers can arrange
their own personal accident cover.
c. It is unnecessary to take out cover, as the RAF does not limit passengers’
common law rights.
d. It is unnecessary to take out cover, as the RAF severely limits common law rights.
Assignment 3 Semester 1 2025
Unique Number:
Due Date: 14 April 2025
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
An insured vehicle (comprehensively insured) collides with a pole and sustains
damage to the front bumper, bonnet, radio, and windscreen. The insured submits a
claim of R25,000. The excesses are as follows:
Basic: R2,000
Windscreen: R500
Radio: R250
What is the correct insurer’s settlement amount?
a. R25,000
b. R23,000
c. R22,250
d. R22,500
Explanation: Total excess = R2,000 (basic) + R500 (windscreen) + R250 (radio) =
R2,750. Therefore, R25,000 - R2,750 = R22,250.
QUESTION 2
A client offers tourist transport services across Southern Africa and asks if
passenger liability cover is still necessary since the Road Accident Fund (RAF)
provides compensation.
Which advice is most appropriate?
a. It is necessary, as the buses operate across borders, where the RAF would
not apply.
b. The client does not need passenger liability cover since passengers can arrange
their own personal accident cover.
c. It is unnecessary to take out cover, as the RAF does not limit passengers’
common law rights.
d. It is unnecessary to take out cover, as the RAF severely limits common law rights.
