Lesson Notes By Weeks and Term - Senior Secondary 1

Self insurance

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Term – 3rd Term

Week: 4

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Self insurance

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

  1. Define self insurance
  2. State the advantages and disadvantages of self insurance

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 premium and premium loading

Students pay attention

STEP 2

EXPLANATION

He defines self insurance.

 

 

Students pay attention and participates

STEP 3

DEMONSTRATION

He states the advantages and disadvantages of self 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

SELF INSURANCE

This is an arrangement by which a big industrial company with enough fund

decides to set aside some funds to meet future losses instead of

transferring the risk to any insurance companies.

 

Advantages of self-insurance

  1. It has lower premium.
  2. It increases profit base of the organization.
  3. There is absence of claim disputes.
  4. The company enjoys control over its employed insurance personnel.
  5. There is direct incentive for loss reduction and control.

 

Disadvantages of self-insurance

  1. The fund created can be wiped out in the event of a catastrophe
  2. Statistical analysis is difficult since companies control the fund.
  3. There is absence of technical advice and risk prevention
  4. Funds to be used for further investment are tied down
  5. There is absence of risk transfer function
  6. The fund does not qualify for corporation tax
  7. The shareholders may not be pleased with the arrangement as they feel

that money which is supposed to form part of dividend fund for a year will

be set aside for the fund.

EVALUATION:    1. Define self insurance

  1. State three advantages and three disadvantages of self-insurance

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively