Lesson Notes By Weeks and Term - Senior Secondary 1
Essential features of an insurance contract
Essential features of an insurance contract
Term – 1st Term
Week: 5
Class: Senior Secondary School 1
Age: 15 years
Duration: 40 minutes of 2 periods each
Date:
Subject: Insurance
Topic:- Essential features of an insurance contract
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 primary and secondary functions of insurance |
Students pay attention |
|
STEP 2 EXPLANATION |
He discusses the essential features of an insurance contract
|
Students pay attention and participates |
|
STEP 3 DEMONSTRATION |
He explains some special terms used in insurance contract |
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
Essential features of an insurance contract
(a) Insurable interest
Insurable interest Insurable interest exists when an insured person derives a financial benefit or other kind of benefit from the continuous existence of the insured object. A person has insurable interest in something when loss of or damage to that thing would cause the person to suffer a financial loss or other kind of loss.
(b) Material fact
This is the material which will influence the judgement of a prudent insurer in fixing premium or determining whether he will take the risk or not.
(c) Disclosure
This states that the insurer needs information from the proposer to decide whether to accept an offer or to decide the price and other terms of the insurance contract.
(d) Warranties
This is described as something by which the insured undertakes that some particular things shall or shall not be done or some conditions shall be fulfilled.
(e) Adhesion
This states that the insured must accept the entire insurance contract and all of its terms and conditions without bargaining. The insured has no opportunity to change the terms, any ambiguities in the contract.
Special terms used in insurance contract
(a)Insurance as a risk transfer mechanism
Insurance is a risk transfer mechanism whereby an individual or business organization can shift some uncertainty and anxieties of life on their shoulder to others
(b)Insurance as a pooling of risks
This is the main principle of insurance. It states that the insurance company takes up the responsibility of settling possible losses from the risks he accepted. The insurer collects premium from people who suffer similar risks to create a common fund, out of which compensation will be paid to those who suffer losses.
(c) Insurance as a risk reduction mechanism
This states that insurance warns individuals and business owners to embrace appropriate devices to prevent an unfortunate aftermath of risk.
EVALUATION: 1. Discuss all the essential features of a contract
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively