PRIZE INDEMNITY INSURANCE

LLENNODO MARKETING can offer prize indemnity insurance from NZ$20,000 to NZ$1 million, as a one in 100, or one in 50 chance.

How it works:

Clients pay a premium for the insurance cover (e.g. cover of $50,000) and the consolation prize (e.g. $1,000).

A competition winner is selected and chooses and opens ONE of 100 identical, sealed envelopes and wins the enclosed prize.

99 envelopes contain the consolation prize (e.g. $1,000)

One envelope contains the major insured prize (e.g. $50,000)

If the envelope reveals “major prize” they win $50,000. This is paid out by the insurance company.

If the envelope reveals “consolation prize” they win $1,000. The client pays this.

Thus the entrant has a one in 100 chance of winning the major prize and is guaranteed the consolation prize.

Common uses:

• Consumer promotions
• Retail promotions

• Staff incentives
• Club draws