Matric Insurance study notes

Insurance:
Introduction:
Insurance is a contract of utmost good faith between an insurance company
(insurer) and an individual or business (insured) where the insurance company
promises to compensate the insured for any insured loss that may occur. The
main aim of insurance is to provide protection for assets.
Assurance is taken out as cover for a risk that is certain (death). The aim of
assurance is to provide security and cover long term risks.
Type of assurance:
 Life assurance
 Term assurance
 Endowment
 Retirement annuity (RA)
 Disability cover
 Trauma cover or dread disease
 Funeral cover
The difference between insurance and assurance:
 Insurance: the insured takes out INsurance IN case something happens.
Insurance covers short term risks.
 Assurance: AS sure as we are alive, each one will retire or die. Assurance
covers long term risks.
Non-Compulsory Insurance:
Insurable risks:
 Fire insurance
 Vehicle insurance
 All weather insurance and damage and theft insurance
 Insurance of money in transit
 Fidelity insurance
 Liability insurance
 Crop insurance
 Group life cover
 Loss of income insurance
Non-insurable risks: