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5.Health Insurance:
It provides benefit for medical expenses.
Types of insurance
6.Property Insurance:
Insurance intended to compensate for harm to the
insured person’s real property.
Property insurance takes various forms like theft
or burglary insurance, fire insurance, liability
insurance etc.
TERMINOLOGY USED IN
INSURANCE
Insurer - the organization or firm which
undertakes to a cover a risk for another or person
i.e. Insurance / Assurance company
The party agreeing to pay for the losses of the
insured.
Examples of insurance companies; AIG, SWICO,
PWICO, Jubilee, Excel, UAP, APA, NIC, NICO,PAX,
Rio etc.
Examples of assurance companies; Lion, Phoenix
and East African Underwriters
TERMINOLOGY USED IN
INSURANCE
Insured/ Assured - The individual/company that
pays to be covered against a risk or the person whose
loss is to be made good
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PRINCIPLES OF INSURANCE
Utmost good faith Material Information is that
information which enables
- Let the buyer beware the insurer to decide:
The insured/ assured
must declare all material whether to accept the risk
Information about the and if so, at what rate of
premium and subject to what
subject mater of terms and conditions
insurance
Breach of utmost good faith
renders the contract voidable
at the insurer’s option and it
can refuse any
compensation.
PRINCIPLES OF INSURANCE
Insurable Interest Indemnity - the insured
- The insured must be has to be placed after the
loss in the same financial
in a position to
(original) position in which
financially suffer if a loss
he was immediately before
occurs i.e. must be the loss.
either the owner or
It is against insurance
trustee of the minor policy to allow an
assured / insured to make
a profit out of the
happening of the loss or
damage insured against
PRINCIPLES OF INSURANCE
Subrogation - Purposes:
Substitution of the Prevents insured from
insurer in place of the collecting twice for the same
insured for the purpose loss i.e. the insured should
of claiming indemnity not look at insurance as a
means of getting income
from a third party
wrongdoer for a loss paid
by the insurer It is used to hold the negligent
party responsible for the loss