Lecture1.Insurance
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Insurance provides compensation for individuals and businesses against losses from unforeseen events. The main aims of insurance are to offset these losses through contracts that indemnify the insured in the form of policies. Key terms include the insurer, insured, premium, policy, and indemnity. While life assurance insures against death and liability insurance covers legal responsibilities, some risks like acts of God, war, or recurring events are generally not insurable.
Lecture1.Insurance
- 1. Insurance – Lecture 1Mark Griffin
- 2. InsuranceLecture 1Why is there a need for insurance.What are the main aims of InsuranceRisks that are not Insurable
- 3. Why is there a need for Insurance?The contract of insurance was developed by thecommercial world.Offset the loss individuals and businesses may suffer through the occurrence of an unforeseen event.
- 4. Insurance – Lecture 1A contract of insurance may be in any form such as a deed, in writing or verbal.In practice, such a contract is in the form of a ‘policy’ a written document. Stating the terms of the contract.
- 5. Types of Policies ‘In General’Life AssuranceLiability Insurance
- 6. Insurance - Lecture 1Life Assurance – insures against an event which must happen – i.e. Death.Liability Insurance –insures against an event or events which may happen.
- 7. Insurance - Lecture 1Liability Insurance– Describes general types of insurance. (Motor, Health, Travel, Business, House & Contents Marine etc)What is the main aim of Insurance?The main aim is to indemnify (compensate) the ‘ insured’ againstthe loss suffered when the event insured against (i.e. the Risk) occurs
- 8. In return for a fee (‘Premium’) the individual or business will be insured against the risk specified.Terms to rememberThe Insurer
- 9. The Insured
- 10. Premium
- 11. Policy
- 12. Life Assurance
- 13. Indemnity
- 14. Liability InsuranceRisks that are not InsurableAct of God – e.g. hurricanes, natural disastersWar Recurring Flooding or recurring anything – after awhile insurance companies may refuse cover.