Post by Admin on Jun 19, 2016 11:29:04 GMT
Insurance
• Insurance is protection against a loss you hope will not happen.
• Assurance is protection against a loss you know will happen.
Reasons for Adequate Insurance
• You must cover all possible risks.
• You must insure enough to cover full amount of loss.
Terms
• Exclusion clause is situations that cannot be insured.
• Policy excess/excess clause is that the insured person may have to pay the first €100 of the compensation themselves.
• Compensation is the money you get when you make a claim.
Principles of Insurance
• Insurable interest is when in order to insure something you must benefit from its existence and suffer from its loss.
• Utmost good faith is when you must tell all relevant information when filling out an application for insurance.
• Indemnity is when you cannot make a profit from insurance.
• Contribution is if a risk is insurance with two insurance companies, each will pay half of the compensation.
• Subrogation passes the legal right of the insured over to the insurer to claim from a third party who caused the loss.
Average Clause
• If you only insure an item for a fraction of the value, you only get the same fraction compensation.
• Formula: Sum insured X claim = compensation
Documents
• Proposal form: Application form for insurance
• Policy: Contract of insurance
• Cover note: Temporary policy
• Certificate of insurance: Proof of insurance
• Claim form: A form you fill out when a loss occurs and you want compensation.
People in Insurance
• Broker: Gives advice on insurance and sells insurance on behalf of lots of companies
• Agent: Sells insurance for only one company
• Actuary: Calculates insurance premiums
• Loss adjuster: Calculates the value of the loss and works for the insurance company
• Loss assessor: Calculates the value of the loss and represents the insured
Steps Involved in Taking Out Insurance
1. Decide what risks you want covered.
2. Fill out proposal form.
3. Pay your premium.
4. File your policy in a safe place.
Steps Involved in Making a Claim
1. Contact guards and insurance company.
2. Obtain estimates of lost/stolen items.
3. Fill out claim form.
4. Talk to assessor and agree on compensation.
Premium Calculation Terms
• Premium is the cost of insurance.
• Risk effects are things that cause premiums to be high or low.
• Loading is extra premium for a higher risk.
• Discount is money taken off premium for a lower risk.
• No claims bonus is when you get a discount if you did not claim for any accidents the previous year.
• Renewal date is the date you must have your premium paid by.
• Days of grace may be given to you. They are a few extra days to pay your premium.
Types of Personal Insurance
• PRSI (Pay Related Social Insurance) is the statutory deduction from your salary.
• Medical insurance is used in case you get sick or need an operation immediately.
• Personal accident insurance covers people who are injured due to an accident.
• Salary protection provides an income in case you can’t work due to illness.
• Pension plan provides you with lump sum and income for your retirement.
• Holiday insurance provides you with health care if you get sick on holidays.
Types of Business Insurance
• Theft insurance: Theft of equipment and stock
• Fire insurance: Damage to premises, equipment and stock
• Consequential loss: Covers the firm for loss of profits while a business is closed as a result of fire or flood
• Fidelity guarantee: Compensates an employer for loss of cash arising from dishonest workers
• Cash in transit: Covers theft of cash while in transit between the business and back
• Goods in transit: Covers theft or damage to goods while been transported
• Motor insurance: Compulsory covers damage or injury caused by motor vehicles
• Employers liability: Employees injured at work
• Public liability: Customers injured while visiting the business
• Product liability: Injury to customers using the product
• Bad debts: Loss due to customers not paying their debts
Reasons for Business Insurance
• Protection of assets against fire and theft
• Protection against legal action as a result of accidents to the public or staff
• Legal reasons – motor insurance
• Insurance is protection against a loss you hope will not happen.
• Assurance is protection against a loss you know will happen.
Reasons for Adequate Insurance
• You must cover all possible risks.
• You must insure enough to cover full amount of loss.
Terms
• Exclusion clause is situations that cannot be insured.
• Policy excess/excess clause is that the insured person may have to pay the first €100 of the compensation themselves.
• Compensation is the money you get when you make a claim.
Principles of Insurance
• Insurable interest is when in order to insure something you must benefit from its existence and suffer from its loss.
• Utmost good faith is when you must tell all relevant information when filling out an application for insurance.
• Indemnity is when you cannot make a profit from insurance.
• Contribution is if a risk is insurance with two insurance companies, each will pay half of the compensation.
• Subrogation passes the legal right of the insured over to the insurer to claim from a third party who caused the loss.
Average Clause
• If you only insure an item for a fraction of the value, you only get the same fraction compensation.
• Formula: Sum insured X claim = compensation
Documents
• Proposal form: Application form for insurance
• Policy: Contract of insurance
• Cover note: Temporary policy
• Certificate of insurance: Proof of insurance
• Claim form: A form you fill out when a loss occurs and you want compensation.
People in Insurance
• Broker: Gives advice on insurance and sells insurance on behalf of lots of companies
• Agent: Sells insurance for only one company
• Actuary: Calculates insurance premiums
• Loss adjuster: Calculates the value of the loss and works for the insurance company
• Loss assessor: Calculates the value of the loss and represents the insured
Steps Involved in Taking Out Insurance
1. Decide what risks you want covered.
2. Fill out proposal form.
3. Pay your premium.
4. File your policy in a safe place.
Steps Involved in Making a Claim
1. Contact guards and insurance company.
2. Obtain estimates of lost/stolen items.
3. Fill out claim form.
4. Talk to assessor and agree on compensation.
Premium Calculation Terms
• Premium is the cost of insurance.
• Risk effects are things that cause premiums to be high or low.
• Loading is extra premium for a higher risk.
• Discount is money taken off premium for a lower risk.
• No claims bonus is when you get a discount if you did not claim for any accidents the previous year.
• Renewal date is the date you must have your premium paid by.
• Days of grace may be given to you. They are a few extra days to pay your premium.
Types of Personal Insurance
• PRSI (Pay Related Social Insurance) is the statutory deduction from your salary.
• Medical insurance is used in case you get sick or need an operation immediately.
• Personal accident insurance covers people who are injured due to an accident.
• Salary protection provides an income in case you can’t work due to illness.
• Pension plan provides you with lump sum and income for your retirement.
• Holiday insurance provides you with health care if you get sick on holidays.
Types of Business Insurance
• Theft insurance: Theft of equipment and stock
• Fire insurance: Damage to premises, equipment and stock
• Consequential loss: Covers the firm for loss of profits while a business is closed as a result of fire or flood
• Fidelity guarantee: Compensates an employer for loss of cash arising from dishonest workers
• Cash in transit: Covers theft of cash while in transit between the business and back
• Goods in transit: Covers theft or damage to goods while been transported
• Motor insurance: Compulsory covers damage or injury caused by motor vehicles
• Employers liability: Employees injured at work
• Public liability: Customers injured while visiting the business
• Product liability: Injury to customers using the product
• Bad debts: Loss due to customers not paying their debts
Reasons for Business Insurance
• Protection of assets against fire and theft
• Protection against legal action as a result of accidents to the public or staff
• Legal reasons – motor insurance