INSURANCE

DATE:18th January-22nd January,2021

DURATION: 70 minutes
LEARNING OBJECTIVES: At the end of the
lesson, student will be able to
A. define insurance
B. explain types of insurance policies
C. benefits of insurance
Insurance can be defined as an arrangement by
a person, a trader, group of individuals to
protect life and property against loss.

An Insurance Company is an institution

involved in the protection of persons and
objects against risks.
1. Vehicle Insurance Policy:
Also known as Auto insurance, car insurance,
or motor insurance, is insurance purchased for
cars, trucks, motorcycles and other road
vehicles.
Fire Insurance
This type of insurance is taken to protect the
insured against loss arising from fire hazards
to buildings and other properties.
 3. Burglary Insurance
Burglary insurance provides financial
compensation against loss or damage to property
by acts of burglary or housebreaking
 4. Marine Insurance
It enables ship owners to insure their ship against
loss or damage at sea, fire, storm, collision with
other vessels etc.
5. Life Insurance
This is a policy that people buy to ensure
against a Breadwinner’s death. If the insured
person dies during the period, death benefits
will be paid to the beneficiary.
a. Redemption of Loss: Insurance redeems loss
on the insured, thereby mitigating or reducing
his pain of loss.
b. Insurance Stimulates Business: It enables the
insured to engage fully in his business without
much sense of fear arising from possible
business collapse or failure.
c. Insurance Promotes Savings: The individual
through payment of premium in life insurance,
saves for the rainy day.
d. Insurance is An Investment: Insurance
provides compensation for victims of industrial
accidents and road mishaps.
f. Promotion of International Trade: Through
Insurance, International trade is encouraged
by shifting the risk to an insurance company.
1. Insurable risk
2. Insurable interest
3. Utmost good faith
4. Indemnity
5. Subrogation
6. Proximate cause
Activity1: Teacher reviews previous term’s
topics by asking students questions.
Activity2: Teacher introduces new topic.
Activity3: Students explain the topic.
Activity4: Students answer questions.
1.What is insurance
2. Explain types of insurance policies.
Teacher summarizes the lesson
Explain the importance of insurance in trading
activities.
Explain the benefits of insurance services.