Lesson Notes By Weeks and Term - Senior Secondary 1
Primary and secondary functions of insurance
Primary and secondary functions of insurance
Term – 1st Term
Week: 4
Class: Senior Secondary School 1
Age: 15 years
Duration: 40 minutes of 2 periods each
Date:
Subject: Insurance
Topic:- Primary and secondary functions of insurance
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
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 the historical development of insurance |
Students pay attention |
|
STEP 2 EXPLANATION |
He mentions and explains the primary functions of insurance
|
Students pay attention and participates |
|
STEP 3 DEMONSTRATION |
He mentions and explains the secondary functions of insurance |
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
Primary functions
a.) Risk transfer: This is the basic reason behind insurance contract.
Insurance is a means by which an individual or business organisation can
shift some uncertainty of life on the shoulder of others by payment of the
little amount called premium. The payment of premium by the insured
makes it possible for him to enjoy the benefit of compensation from the
fund if he suffers loss and if he is covered under the fund paid.
b.) Common pool: Through insurance, people with common risk come
together and contribute what is known as premium so that in the happening
of loss, whosoever suffers the loss shall be compensated.
c.) Equitable premium: Insurance ensures that premium paid into the fund
by the policy holder corresponds to the expected share of financial loss of
the involved party.
Secondary functions
a.) Loss prevention: Insurance warns individuals and business owners to
embrace appropriate device to prevent unfortunate aftermath of risk.
Insurance experts, if consulted, will advise individuals or enterprises on
how to prevent loss from occurring.
b.) Security: Insurance provides security to the owner or management of a
firm which would have been a source of worry to him, over the effect of
some loss or damages that the business is exposed to.
c.) Loss control: This deals with the method of limiting or controlling the loss following the happening of the insured events.
d.) Stimulus to business enterprise: Insurance helps in stimulating business
by making available the fund for investment in the production side of the
business. That is to say, the funds that would have been set aside to
reduce the effect of financial loss if not insured would be used for further
investment
EVALUATION: 1. Mention and explain two primary functions of insurance
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively