Insurance
- 1. •People insure things that are valuable to them and that would cost a lot of money to replace if they were stolen or damaged in some way
- 2. Insurance is a way of protecting ourselves financially by arranging for the payment of a sum of money in the event of loss or injury occuring.
- 3. Cover all possible risk Be enough to cover the loss that might occur e.g. if a house is worth €100,000 it should be insured for €100,000, and not for less http://www.commoncraft.com/video/insurance
- 4. Example of Motor Insurance Not everyone’s car will be stolen or damaged so the money paid to the insurance company is used to pay a small % of people whose cars are stolen or damaged This is known as the Pooling of risk
- 7. 1. Calculate the value of the item you wish to insure 2. Contact an insurance company 3. Complete the proposal form
- 8. 4. When the insurance company accepts the proposal for insurance, you must pay the premium. 5. Within a couple of weeks, the insurance company will send the insurance policy and certificate of insurance to you.
- 9. Personal Home Life Motor Vehicle
- 10. By law every person who drives a car must have insurance. http://www.nononsense.ie/ http://allianz.ie/car-insurance/
- 11. Third party, fire Compensates the insured in and theft the case of the car going on fire or being stolen Comprehensive This gives third party, fire and theft cover, as well as accidental damage, which gives compensation for damage to the motorist’s own car
- 12. If you have no accidents or claims made during the year, you will receive a discount on your premium for the next year. This is known as a no claims bonus
- 13. House Insurance Covers the house against damage by fire or break in. It is very important that the insurance cover is adequate House Contents This gives compensation if household contents are stolen or damaged, e.g. furniture, clothes etc All Risks All risk insurance gives wider cover than that given by house contents insurance.
- 14. Medical insurance This covers the cost of doctors and hospitals in time of illness. E.g. VHI and Aviva PRSI The State insurance covers people who are out of work through illness or unemployment Holiday Insurance This gives compensation in the event o a holiday having to be cancelled, a person becoming ill on holiday or goods being stolen while on holiday
- 15. Whole Life This guarantees to pay an agreed Assurance sum of open to the dependents when the insured person dies Temporary life Provides cover for an agreed (Term) Assurance period of time, e.g. up to 65 Endowment to pay an agreed sum on the Assurance death of the insured person, or on the insured person reaching a certain age, whichever comes first
- 16. Assurance differs from insurance in two ways: 1. In insurance there is the possibility of the event happening, whereas in life assurance, there is a certainty that a person or reach a certain age 2. Insurance is taking out on an annual basis whereas life assurance is taking out over a definite number of years
- 17. 1. Insurable Interest: People can only insure something where they benefit from having the item and it would cost you money to replace it if it was robbed or stolen, e.g. Your house Your House Neighbours House
- 18. 2. Utmost good faith: Answer all questions truthfully and provide all relevant information to the insurance company. E.g. Insurance company may refuse to pay a claim for a house fire, because it was not told that the roof was thatched.
- 19. 3.Indemnity: This rule states you should not make a profit from insurance.
- 20. 4. The principle of Contribution: If a risk is insured by two or more insurance companies, any compensation payable will be shared between the companies. Eg. Camera stolen on holidays. – house and holiday insurance policy.
- 21. 5. The principle of Subrogation: Insurers, who pay out full compensation for an item which they have insured, are entitled to take possession of the item and sue a third party. subrogation – linked to indemnity.
- 22. Average Clause: Besides the five principles there is another important rule in insurance, called the average clause. This states that if something is insured for only a proportion of its value, for example, half of its value, the insurer is only liable for the same proportion of the loss, i.e. half, when a claim is made.
- 24. There may be a legal requirement to do so. E.g. PRSI, Motor Insurance. Insurance may be required as a condition for getting a loan. To protect against the risk of serous financial loss. To give the insured person peace of mind.
- 25. 1. Loss of profit due to sudden increases in the cost of production 2. Loss of profit due to strikes 3. Loss of profit due to changes in consumers’ tastes and fashions 4. Loss of profit due to the entry of new rival firms into the industry 5. Loss of profit due to the adverse effects of new legislation 6. Loss of profit due to adverse effects of international trade agreements before the trade agreement 7. Loss of profit due to bad management
- 26. Install security devices Security Procedures Training Staff Maintenance of Car Careful Driving
- 27. http://www.youtube.com/watch?v=- c_zppq6YfQ&feature=related
- 28. Insurance broker Utmost good faith Days of Grace Indemnity Proposal form Subrogation Premium Contribution Insurance policy Non insurable risk Cover note Exclusion clause Renewal notice Policy Excess Insurable interest Surrender Value Comprehensive motor False Economy insurance Certificate of insurance Insurer No claims bonus Assessor Actuary Loadings