Michael is a college student who is majoring in Banking and Finance He owns a high mileage 2018 Volkswagen Golf that has a current market value of Kshs 2 SM The current replacement
value of his clothes, television, stereo, cell phone, and other personal property in a rented
apartment totals Ksh 1M He uses disposable contact lenses, which cost Ksh 200,000 for a six
month supply. He also has a waterbed in his rented apartment that has leaked in the past. An
avid runner, Michael runs 10 km daily in a nearby public park that has the reputation of being
extremely dangerous because of drug dealers, numerous assaults and muggings, and drive-by
shootings Michael's parents both work to help him pay his tuition. For each of the following
risks or loss exposures, identify an appropriate risk management technique that could have
been used to deal with the exposure
Explain your answer
(14 Marks)
a Physical damage to the 2018 Volkwagen Golf because of a collision with another motorist
b Liability lawsuit against Michael arising out of the negligent operation of his car
c. Total loss of clothes, television, stereo, and personal property because of a grease fire in the
kitchen of his rented apartment
d Disappearance of one contact lens
e Waterbed leak that causes property damage to the apartment
1 Physical assault on Michael by gang members who are dealing drugs in the park where he
Tuns
g Loss of tuition assistance from Michael's father who is killed by a drunk driver in an auto
accident
Question Two
(6 Marks)
Role of the Federation of Kenya Insurers​