pob insurance
what is insurance
deals with the compensation for losses of property in events, such as fire, hurricane, and motor vehicle accidents
what is assurance
refers to the compensation for something that must happen, such as death
nb: insurance is based on
The policy of the fortunate assisting the unfortunate example. It is a known fact that a number of houses will be burnt down in a given year. What is not known are the particular wants therefore homeowners run the risk of losses to fire. Hence, instead of one individual bearing the loss, it is shared by several persons, this is referred to as pooling of risk
what is a premium
A premium is, the amount paid to ensure the property
what is the policy?
The policy this is the agreement that enables the insured, promises to do something and the insurance company promises to pay a certain sum if a certain event happens
indemnity
The insurance company will only refund in case of a loss to restore the insured to the position in which he or she was in before the loss occurred. In other words if you own an old house and you burn it down to get money, the insurance company will estimate the value of the house at the time of the loss and base the insurance settlement on that value
insurable risk
this means that the insurer must have an interest in the person or object being insured. They must stand to suffer a loss if a loss does occur. Therefore, you can insure your house your car your bitch but not your neighbors, house car or his bitch
outmost good faith (being honest)
this principal means that you must tell the insurance company all it needs to know in order for it to assist properly the risk of providing you with the insurance you require. all questions on the insurance proposal form must be answered and accurately
contribution
if an item is insured with more than one insurance company, or on more than one insurance policy, each company or policy will refund to the insured proportion of the law suffered to make up for the full amount of the loss
subrogation
A person who suffers a loss because of the actions of another person, can bring an action, or lay a claim to recover his losses from that person however, they cannot claim damages from both their insurance company and the person who caused them the loss
cancellation
in several insurance policies, there is a clause which allows both the insured and the insurer to cancel the policy. With due notice to the other party
legality
you cannot take out insurance to be compensated for the result or efforts of your actions If these actions are illegal in other words, you cannot contract outside of the law.
arbitration
in cases where a claim against an insurance policy cannot be settled. The policy may provide for a neutral person, and an arbitrator to be appointed by both parties in the dispute. Their decision on settlement is final.
average claim
this clause in a policy states that losses will be compensated or refunded, according to the proportion of the insurance, covered to the total value of the insured item
proximate clause
The loss you suffered, must be caused by that which was actually insured and not something else. in other words, if you own a boat and you insure against lost due to hurricane, you can claim damages from the insurance company if it is destroyed during a storm. However, suppose a ship accidentally rams your boat and destroys it, you will not be compensated by the company however, you can sue the owner of the ship.
types of insurance
there are two types of insurance
life assurance
non life insurance
life assurance
assurance refers the event that is certain such as death.
life assurance coverage aims at paying claims to the beneficiaries of the policy owner upon a certain time for insurance during a period of mortgage.
non life insurance
unlike assurance non life insurance provides coverage if an unexpected event occurs
marine insurance
usually taken by persons engaged in overseas trade. these include ship owners and persons shipping cargo
fire insurance
this covers the lost of property and its contents such as furniture due to fire
consequential loss
arise due to the fire that may be other than damage to the property itself e.g a businessman may be compensated for losses of profits arising from a fire
types of life assurance
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whole life
payable upon the death of the insured
mortgage guarantee
taken out by financial institutions against the life of a person to whom they are lending money
annuities
thins is a kind of pension agreement payment. payments are made to an insurance company for a period or on a lump sum basis. this money is placed into a fund and invested so that after a specified number of years the insured becomes entitled to a regular weekly or monthly income
endowment
insured is guaranteed a certain sum either a debt or on a specified day example unretirement accident, etc. workmen compensation policy is an example of such policy. The insured is compensated for the loss of a limb or other damages, resulting from an accident.
public liability
taking out by some companies to meet the claims made by the public arising from the use of its property or product