Salim, an employee of Sphi Ltd, was killed in an accident at work. Sphi Ltd's insurance company paid compensation of $800000 to Salim's family. Salim also had life insurance cover totalling $180000.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2015). The mark or mark type is shown in brackets.

1. [1] One mark for employer's liability/workman's compensation
2. [2] $800000 + $180000 (1 mark) = $980000 (1 mark)
3. OFR applies. If a candidate gives the correct answer without workings award full marks.
4. [4] Any four stages × 1 mark each (which need not be in logical order) –
5. • Contact insurer
6. • Check if policy valid
7. • Obtain death certificate
8. • Obtain evidence of accident
9. • Agreement of loss form must be signed
10. • Hire assessor (loss adjuster)
11. [3] Any three points × 1 mark each and up to 2 marks for a well-developed point –
12. • Indemnity means that you are not be able to make a profit from a loss
13. • You will be paid compensation by the insurance company
14. • But you will not be able to claim more than the insured value (1) even if what you are
15. • Claiming for is worth more (1) and you failed to insure it for its true value (1)
16. Any other relevant point
17. [4] Any two well explained points × 2 marks
18. • Providing advice (1) on savings/investment of the compensation (1)
19. • Providing payment services + example
20. • Providing a means of safeguarding the compensation money (1) until she decides what to do with it (1)
21. • Providing loan facilities for a particular purpose (1) e.g. car purchase (1)
22. • Providing Internet banking services (1) such as current account facilities (1)
23. • Providing regular bank statements (1) to show her up-to-date financial position (1)
24. • Providing savings accounts (1) which earn interest (1)
25. • Loan for funeral (1)
26. Any other relevant point
27. [6] Level 2 (4-6 marks)
28. Candidate has discussed the advantages and disadvantages to factory workers of working on a production line and has shown, with reasons, whether or not the advantages outweigh the disadvantages.
29. (If a candidate has discussed only advantages OR disadvantages award 4 marks max.)
30. Factory workers who work on production lines take part in division of labour. They do the same task repeatedly and so may become more skilled at this task and may work at a greater speed. Often the tasks are rotated so the workers do different tasks and do not become so bored. As more machinery and technology is introduced, the manual effort required may become less. Often the tasks are simple and easy to learn and so little training is required. The workers may find that they can change jobs quite easily and work in a variety of workplaces.
31. On the other hand, the work is often boring because it is so repetitive. This may lead to mistakes, loss of quality and lower output. Workers may have less pride in their jobs and less job satisfaction as they are no longer responsible for making the product as a whole. Workers may feel less valued as they make only one part of a product. This may be helped by job rotation. Sometimes they may find themselves unemployed or laid off. Workers in one industry are often dependent on workers in another industry. If there is a strike in a power industry, many workers in factories using electricity may be unable to work.
32. There are advantages and disadvantages to the worker on a production line. Boredom may countered by good pay to attract employees. Production lines benefit the owner of the factory. It is doubtful if the advantages to the workers are greater than the disadvantages. After all Salim was killed in an accident at work. Production lines do, however, provide employment.
33. Level 1 (1-3 marks)
34. Candidate has commented on the advantages/disadvantages to factory workers of working on a production line and may/may not have given an opinion.
35. Factory workers who work on production lines take part in division of labour. They do the same task repeatedly. They become skilled at this task. They may work at a greater speed. Often the tasks are simple and easy to learn. Often the pay is good.
36. The work is often boring. It is repetitive. This may lead to mistakes and loss of quality. Workers may have less pride in their jobs. They do not make the entire product. The advantages may outweigh the disadvantages if the jobs are well paid.