Lesson Notes By Weeks and Term - Senior Secondary 1

Insurable interest I

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Term – 1st Term

Week: 12

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Insurable interest I

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define insurable interest
  2. Discuss the essentials of insurable interest
  3. Explain the ways insurable interests could be created

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on hazard/peril

Students pay attention

STEP 2

EXPLANATION

He explains the meaning of insurable interests

 

Students pay attention and participates

STEP 3

DEMONSTRATION

He discusses the essentials of insurable interests.

He further explains ways insurable interests could be created

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

INSURABLE INTERESTS I

Insurable interest is the legal right to insure, arising out of financial relationship, recognized at law between insured and subject matter of insurance.

Insurable interest is the legal right to insure any subject matter of insurance. Typically, insurable interest is established by ownership possession or direct relationship. For example, people have insurable interest in their homes and vehicles but not in their neighbours’ homes and vehicles.

Subject matter of insurance

This refers to a physical object. It could be a property or an event that may result in a loss of a legal right or creation of a legal liability.

Examples are:

  1. Fire policy- Building, stock or machinery,
  2. Marine policy-Cargo or ship owner’s legal liability to third parties for injury or damage.

 

Essentials of insurable interest

  1. There must be a property, right, interest, life, limbs or potential liability that are capable of being insured.
  2. These property, right, limbs or potential liability must be the subject matter of the insurance.
  3. The relationship between the insured and the subject matter of the insurance must be the type that could either benefit the insured if nothing happens to the subject matter of the insurance, or as the type that will affect the insured negatively following the destruction or damage of the subject matter.
  4. The insured must be in a legally recognized relationship with the subject matter of insurance.

 

Creation of insurable interest

a. By common law

This refers to those interests acquired through one’s existence e.g. ownership of property or potential liability towards others caused by negligence on one part to another.

b. By contract

This is the interest that arises through contractual relationship between one party and another e.g. a tenant required by tenancy agreement to maintain or repair the building occupied, a building contractor that would be liable for negligence of sub-contractors.

c. By statute

This refers to those interests acquired through the placement of responsibilities on certain people through various laws enacted.

EVALUATION:    1. Define insurable interests

  1. State the three essentials of insurable interests
  2. What are the three ways insurable interests can be created?

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively