Lesson Notes By Weeks and Term - Senior Secondary 1

Term – 1^st Term

Week: 2

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Essential elements of insurance

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

1. Discuss the parties to an insurance contract
2. State and explain the essential elements of insurance

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

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

Parties to an insurance contract

a. The insured: This is the party that seeks for an insurance protection from

an insurance company. At the inception of contract before acceptance, they

are known as proposer while after the acceptance and consideration paid,

they are called the “insured”.

b. The insurer: This is the party that provides insurance protection to the

insured and compensates the insured against the specific loss insured

against.

c. The intermediaries: They are the link between the insurer and the

insured. They are called agents, insurance consultants or insurance

brokers. They are responsible for the creation of constructional relationship

between the two parties (the insured and the insurer) to a valid insurance

contract.

Essential elements of insurance contract

a. Offer: This states that offer comes from the insured. It is contained in the

proposal form which is filled by the proposer and submitted to an insurer.

Note: offer is an expression of willingness to contract on certain terms.

b. Offeror: This is the party making the offer. This is the person or company

that has ownership in some form of the goods or services being offered.

c. Offeree: This is the person or company willing to pay the other party

some form of compensation in order to use or acquire ownership of the

goods and/or services.

d. Acceptance: This states that acceptance comes from the insurer.

Acceptance is the final agreement of both parties to consent to the terms of

the offer.

e. Intention to create legal obligation: This states that the insurer and

the insured must exhibit a mutual intention to create a legal relationship

between themselves within the period of negotiation of the contract and the

exchange of offer and acceptance.

f. Legality of the object : This explains that the object to be insured in a

contract of insurance must be legal and not against public policy (law).

g. Consideration: This implies something valuable given as recompense for

a promise, which causes the promise to become binding as a contract. The

consideration is the premium paid by the insured to the insurance

company.

EVALUATION:    1. Discuss the parties to an insurance contract

2. State and explain the essential elements of an insurance contract

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively