WEEK: SIX

TOPIC: INSURANCE (Cont.)

CLASS: JSS2

GENDER: MIXED

AVERAGE AGE: 12 YEARS

DURATION: 2 PERIODS (40min. for each period)

REFERENCE: WABP junior secondary business studies book 2 and

Classic business studies book 2

BEHAVIOURAL OBJECTIVES: By the end of the lesson, students should be able to:

Explain the types of insurance
Explain some key words in insurance policy
Mention the documents used frequently used for insurance
Define insurance scheme and state examples.

PREVIOUS KNOWLEDGE: the students have been taught “insurance” as a topic last week.

Biblical Objective:
To plan wisely and provide protection against unforeseen risks while trusting God as our ultimate security.

Biblical Truth:
The Bible encourages prudence and foresight, teaching that responsible preparation is part of good stewardship.

Bible Verse:
“The prudent see danger and take refuge, but the simple keep going and pay the penalty.” — Proverbs 22:3 (NIV)

LESSON CONTENT

STEP 1: TYPES OF INSURANCE

1. Fire insurance

2. Vehicle insurance

3. Theft and burglary insurance

4. Marine insurance

5. Pension insurance scheme

6. Health insurance

7. Home insurance

8. Bad debts insurance

9. Fidelity guarantee

10. Agricultural insurance

11. Life assurance

FIRE INSURANCE: Fire insurance is a type of insurance which provides cover for loss or damage caused by burning.

VEHICLE INSUANCE: Vehicle insurance is meant to provide compensation in case of road accidents, theft, robbery and other hazards.

There are two basic forms of vehicle insurance coverage –

a. THIRD PARTY INSURANCE: This covers another person whose vehicle has been damaged by the insured.

b. COMPREHENSIVE INSURANCE: This policy provides absolute or complete coverage for the insured and third parties.

THEFT AND BURGLARY INSURANCE

This contract covers cases of stealing and breaking into a property.

MARINE INSURANCE: Marine insurance covers unfortunate events that might occur when goods and passengers travel by sea.

PENSION INSURANCE SCHEME: Pension insurance involves customers or employees saving part of their income to enable them collect what they have saved over a period of time after they retire from active employment.

HEALTH INSURANCE: Health insurance is a coverage paid for by individual against possible future hospitalization.

HOME INSURANCE: Home insurance provides compensation for any mishap that occurs in the home.

BAD DEBTS INSURANCE: Bad debts are debts that are difficult to collect. Therefore, bad debts insurance covers debts that may not be paid by the debtors to the business. Here, the insurance company will guarantee to protect the business against irrecoverable debts.

FIDELITY GUARANTEE: This is taken by a firm to guide against the risk or loss arising from misappropriation of money by the employees in charge of cash, e.g cashier, accountants.

AGRICULTURAL INSURANCE: Agricultural insurance is the type of insurance which provides relief to farmers for losses suffered on their crops as a result of drought, pest and diseases.

LIFE ASSURANCE

Life assurance is one important branch of insurance which is taken as a protection against loss caused by the death of a person. This policy covers human beings and not properties. The risk covered here will inevitably occur but the time of occurrence is what is not known.

TYPES OF LIFE ASSURANCE

a. WHOLE LIFE ASSURANCE: This type of insurance will last for the life time of the life assured, and the sum assured is payable only at death.

b. ENDOWMENT POLICY: This is a type of policy which provides for the sum assured to be paid either after a fixed number of years or at death, depending on which one occurs first.

DIFFERENCES BETWEEN INSURANCE AND ASSURANCE

INSURANCE ASSURANCE

1. The risk insured against may not occur The risk is certain to occur

2. It is a provision of cover against This is a provision of cover against

eventualities which may never occur some eventualities which are certain

to occur at some time in the future.

3. It hinges on probabilities It hinges on possibilities

4. Examples are fire, marine, burglary Example is life assurance

STEP 2: TERMS FREQUENTLY USED IN INSURANCE INDUSTRY

PROPOSAL FORM: This is a form that must be completed by a person wishing to enter into an insurance contract.

He must disclose all relevant information truthfully in the form.

COVER NOTE: This is a temporary insurance cover to enable the insured to enjoy the benefits of a policy while it is being processed.

INSURANCE POLICY: This is a document which set out the exact terms of the insurance contracts.

PREMIUM: This is the payment made to an insurance company for an insurance policy. It can be paid annually, weekly or monthly depending on the agreement.

INSURER: This is insurance company who undertakes to indemnify another against a specified loss insured against.

INSURED: This is a person who wants his or her property to be protected.

STEP 3: Types of Insurance Documents

1. Insurance Policy: A contract between you and the insurance company.

2. Proposal Form: A document you fill out to apply for insurance.

3. Certificate of Insurance: A document that proves you have insurance.

4. Claim Form: A document you fill out to request payment from the insurance company if something bad happens.

STEP 4: Insurance scheme

An insurance scheme is a program or plan that provides insurance coverage to a group of people or organizations. It outlines the terms, conditions, and benefits if the insurance coverage.

Examples of insurance scheme

National Health Insurance Scheme (NHIS): this is a government sponsored health insurance program that provides coverage for medical expenses.
Group Life Insurance Scheme: this is an employer-sponsored life insurance program that provides coverage for employees.
Crop Insurance Scheme: this is a program that provides coverage for crop losses due to natural disasters or other events.

EVALUATION: the teacher evaluates the lesson by asking the students the following questions

1 Explain the types of insurance
Explain some key words in insurance policy
Mention the documents used frequently used for insurance
Define insurance scheme and state examples.

ASSIGNMENT:

Write short notes on the following:

i. Brokers ii. Actuary iii. Underwriting

Revision

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