INSURANCE III | Acadlly

FORMS OF LIFE POLICY

Whole life Assurance: Premiums are paid throughout the lifetime of the assured and the sum assured is payable only when death of the holder of the policy occurs. This policy is taken for the benefit of dependants like children , wife and relations
Term assurance: This is to cover the life of the policy holder for a specific period only and the sum assured is paid only if the policy- holder dies before the specific date-i.e no payments is made if he survives till the end of that date . This policy is usually taken to cover the life of the holder during a journey e.g by air
Endowment Assurance (Policy) Premiums are paid over an agreed number of years and the sum assured is paid either at the end of that specific time or when the policy-holder dies, whichever happens first.
Annuities: This is a form of pension in which an insurance company, in return for a certain sum of money (paid in a lump sum or by installment) agrees to repay this money plus the investment income that it is able to earn over the expected life time of the investor or for a specified period.

ACCIDENT INSURANCE

This covers all types of insurance except life, fire and marine.

TYPES OF ACCIDENT POLICIES

MOTOR VEHICLE INSURANCE

This provides for the payment of compensation for the death or bodily injury to any person arising from the use of vehicles on the road. There are two types of Motor Vehicle Insurance.

Third Party Insurance Policy: This type of policy covers only the loss or injury suffered by the third party (i.e. passengers as well as property) but does not include loss or damage relating to the owner or his vehicle.
Comprehensive Insurance Policy: This covers the owner ( driver), the insured vehicle ,third parties and sometimes the contents of the insured vehicle. This type of policy is optional i.e it is not compulsory under the law. Premiums paid under the comprehensive insurance policy are higher than those under third-party policies.

PERSONAL ACCIDENT INSURANCE POLICY

This policy covers the loss for partial or permanent deformity or disability arising from accident e.g loss of sight, loss of limb etc.

EVALUATION

Give five reasons why a life insurance policy may be taken.
Describe any five insurance policies which a large departmental shop owner may take.

MARINE INSURANCE

This consists of insurance cover for both ships and their goods(i.e. cargo) against risks at sea.

TYPES OF MARINE INSURANCE

Hull Insurance: This covers damage or loss both to the insured vessel (i.e ship) and the damage or loss caused by it to other vessels. It is subdivided into Time policy and Voyage policy.
Cargo Insurance: This covers goods and cargoes carried by a ship. It makes provision for the refund of the value of goods or cargo carried by the shipowner should the goods get lost or damaged at sea.
Ships owners liability: This type of insurance covers all risks and losses for which the owner of a ship or its employees are liable for negligence in handling of goods ,injury to crew on board, dock workers, passengers, damage to other ships or to ports(i.e installations at wharves, quays etc)
Freight insurance: This policy is taken to cover against refusal to pay charges for lifting the goods. Also this ship owner may be called upon to refund the freight to the owner of the goods if the goods do not get to their destination(i.e if the goods are lost in transit).

EVALUATION

Explain the following terms (a) Hull Insurance (b) Freight Insurance
Distinguish between Third Party Insurance Policy and Comprehensive Insurance Policy

GENERAL EVALUATION QUESTIONS

Give five advantages and four disadvantages of credit sales
Explain the different activities involved in industrial, commercial and service occupations
Explain five advantages and four disadvantages of transportation by pipelines
Give five functions of the Federal Airports Authority of Nigeria
State five aids to trade and explain how each facilitate trade

WEEKEND ASSIGNMENT

Fidelity guarantee insurance policy covers employees a) injured at work b) pension and gratuity c) handling cash c) retirement benefits
Time policy insurance is associated with a) motor vehicles b) ships at sea c) life endowment d) goods in transit
Which of the following policies compensates a businessman for profit lost while rebuilding his factory after a fire incident a) consequential loss policy b) engineering policy c) fidelity guarantee insurance d) accident policy
Which of the following types of insurance is usually excluded from the principle of indemnity a) fidelity guarantee b) life c) marine d) motor vehicle
The insurance policy that specifically covers damage to structure or machinery of a ship is known as……………. insurance. a) cargo b) hull c) ship owners d) time

THEORY

List four insurance policies a ship owner can take