Insurance
IEB Business Studies
Nicola Waite
, Nicola Waite Business Studies May 2021
INSURANCE
• You pay an insurance premium based on the value of insurable interest and the risk involved.
• Aim is to provide PROTECTION.
• Insurance is a contract of good faith between an insurance company (insurer) and an individual
or a business (insured) where the insurance company promises to compensate the insured for
any insured losses.
Non-compulsory insurance
• Fire insurance
• Vehicle insurance
• Household insurance
• Insurance for money in transit
• Fidelity
• Liability
• Crop insurance
• Business insurance
• Commercial insurance
Non-insurable risks
❖ Inflationary factors
❖ Changes in fashion
❖ Improvement in technology
❖ Illegal activities
❖ Losses from bad debts
❖ Damage from wars
Compulsory Insurance
➢ Unemployment insurance fund (UIF)
o Covers employees against loss of income if they don’t have a job
o Employer deducts 1% from employees salary and mirrors and equal contribution
o Public servants, foreigners on contract and people employed for less than 24hr per
month do not pay UIF
o Pregnant women can claim but only for 17 weeks
o Max of 58% of your salary can be paid out
➢ Compensation for occupational injuries and diseases act (COIDA)
o Protects employer from claims made against him by employees or their families in the
case of death.
o Compensation is provided to the employee or the family when they are unable to work
because of an accident at work.
o Doesn’t apply to national defense force, police, domestic workers or casual workers.
1|P a g e
IEB Business Studies
Nicola Waite
, Nicola Waite Business Studies May 2021
INSURANCE
• You pay an insurance premium based on the value of insurable interest and the risk involved.
• Aim is to provide PROTECTION.
• Insurance is a contract of good faith between an insurance company (insurer) and an individual
or a business (insured) where the insurance company promises to compensate the insured for
any insured losses.
Non-compulsory insurance
• Fire insurance
• Vehicle insurance
• Household insurance
• Insurance for money in transit
• Fidelity
• Liability
• Crop insurance
• Business insurance
• Commercial insurance
Non-insurable risks
❖ Inflationary factors
❖ Changes in fashion
❖ Improvement in technology
❖ Illegal activities
❖ Losses from bad debts
❖ Damage from wars
Compulsory Insurance
➢ Unemployment insurance fund (UIF)
o Covers employees against loss of income if they don’t have a job
o Employer deducts 1% from employees salary and mirrors and equal contribution
o Public servants, foreigners on contract and people employed for less than 24hr per
month do not pay UIF
o Pregnant women can claim but only for 17 weeks
o Max of 58% of your salary can be paid out
➢ Compensation for occupational injuries and diseases act (COIDA)
o Protects employer from claims made against him by employees or their families in the
case of death.
o Compensation is provided to the employee or the family when they are unable to work
because of an accident at work.
o Doesn’t apply to national defense force, police, domestic workers or casual workers.
1|P a g e
