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Insurance
Ms. Tiernan
Insurance
“Insurance is a service people can
purchase that compensates them for a
financial loss” (www.skoool.ie)

Ms. Tie...


The person who wants to be insured pays
a premium
 Premium

will be higher if loadings are added
e.g. if you were in a...
Risks


Risks are insurable when:
Person taking out insurance gains financially
from its existence & suffers from its los...
Forms


Proposal Form – Completed when
taking out insurance
 Sample



Proposal Form

Claims Form – Completed when maki...
Ms. Tiernan
Ms. Tiernan
Principles of Insurance


3 main principles govern insurance
Insurable Interest
Utmost Good Faith
Indemnity
Ms. Tiernan


Insurable Interest – Person who wants
to take out insurance must gain financially
from existence of what's being insure...


Utmost Good Faith – Person applying
for insurance must truthfully answer all the
questions



Failure can result in in...


Indemnity – The insured person cannot make
a profit from insurance – Two sub-principles:
Principal of Contribution – If...
Types of Insurance
taken out by households


Personal Insurance



House Insurance



Life Assurance



Motor Insuranc...
Types of Insurance
taken out by businesses


Fire Insurance



Employers’ Liability Insurance



Product Liability Insu...
Types of Insurance
taken out by businesses continued


Public Liability



Motor Insurance



Glass & Business Signs In...
Insurance People


Actuary – Calculates the insurance
premium



Assessor – Calculates compensation to
be paid

Ms. Tier...
Practice calculating insurance premiums!

Ms. Tiernan
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Junior Cert Business Studies Insurance

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Irish Junior Certificate Notes on Insurance

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Junior Cert Business Studies Insurance

  1. 1. Insurance Ms. Tiernan
  2. 2. Insurance “Insurance is a service people can purchase that compensates them for a financial loss” (www.skoool.ie) Ms. Tiernan
  3. 3.  The person who wants to be insured pays a premium  Premium will be higher if loadings are added e.g. if you were in a 2 crashes last year the risk of it happening again will be higher)  Premium will be lower if deductions are applied e.g. if you travel less than 15,000 km per year there’s less chance of you crashing  In return the insurance company promises to pay compensation if a financial loss occurs Ms. Tiernan
  4. 4. Risks  Risks are insurable when: Person taking out insurance gains financially from its existence & suffers from its loss The loss is accidental There are a large number of similar risks being insured against Possible loss is not so large as to ruin the insurance company Ms. Tiernan
  5. 5. Forms  Proposal Form – Completed when taking out insurance  Sample  Proposal Form Claims Form – Completed when making a claim for compensation  Sample Claim Form Ms. Tiernan
  6. 6. Ms. Tiernan
  7. 7. Ms. Tiernan
  8. 8. Principles of Insurance  3 main principles govern insurance Insurable Interest Utmost Good Faith Indemnity Ms. Tiernan
  9. 9.  Insurable Interest – Person who wants to take out insurance must gain financially from existence of what's being insured and suffer from its loss Ms. Tiernan
  10. 10.  Utmost Good Faith – Person applying for insurance must truthfully answer all the questions  Failure can result in insurance being worthless Ms. Tiernan
  11. 11.  Indemnity – The insured person cannot make a profit from insurance – Two sub-principles: Principal of Contribution – If same risk insured by two or more insurance companies compensation is shared between them Principal of Subrogation – Once insurance company pays out compensation it becomes the owner of the item insured Note: Underinsurance e.g. if you insure your house for €100,000 but it was actually worth €150,000 you will only receive the €100,000 if it’s burned down Ms. Tiernan
  12. 12. Types of Insurance taken out by households  Personal Insurance  House Insurance  Life Assurance  Motor Insurance e.g. Third Party Comprehensive Ms. Tiernan
  13. 13. Types of Insurance taken out by businesses  Fire Insurance  Employers’ Liability Insurance  Product Liability Insurance  Burglary Insurance Ms. Tiernan
  14. 14. Types of Insurance taken out by businesses continued  Public Liability  Motor Insurance  Glass & Business Signs Insurance  E-commerce Insurance Ms. Tiernan
  15. 15. Insurance People  Actuary – Calculates the insurance premium  Assessor – Calculates compensation to be paid Ms. Tiernan
  16. 16. Practice calculating insurance premiums! Ms. Tiernan

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