Lesson Notes By Weeks and Term - Senior Secondary 2

Fire insurance II

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Term – 1st Term

Week: 2

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Fire insurance II

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

  1. State the features of fire insurance
  2. Discuss the main parts of the fire insurance policy
  3. State the compensation procedures in fire insurance contract

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 fire insurance

Students pay attention

STEP 2

EXPLANATION

He states the features of fire insurance and discusses the main parts of the fire insurance policy

 

Students pay attention and participates

STEP 3

DEMONSTRATION

He states the compensation procedures in fire 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

FIRE INSURANCE

FEATURES OF FIRE INSURANCE

  1. Fire insurance is a written agreement that take place between insurance

company (insurer) and the insured. It is a personal contract between

insurer and insured.

  1. Fire insurance requires payment of premium by the insured to the

insurance companies.

  1. Fire insurance contract is governed by the principle of utmost good faith.

It means that no secrets should be kept and all facts should be disclosed

fairly about property by insured to the insurer.

  1. Fire is the only cause for losses and damages to insured property which

is considered under fire insurance contract. The fire must be actual and

accidental.

  1. The compensation for losses or damages to property can only be

claimed by the person whose name is mentioned in the policy documents.

  1. Fire insurance contract are meant to indemnify the losses or damages

caused due to fire.

  1. The policy is valid when the insured has insurable interest. Insured must

be affected by existence and non-existence of such property.

  1. Insurers under fire insurance contract are liable to compensate up to

insured amount of property. The insured amount is the extent of loss to

property which insurer agrees to undertake and compensate at time of

entering the insurance contract.

  1. The period of fire insurance policy is equal to or less than one year.
  2. Insured is required to inform the insurer immediately in case of fire

accidents for getting their assured compensation.

 

The different types of property that could be covered under a fire insurance

policy are: Dwellings/residential places, offices, shops, hospitals, places of

worship etc. and their contents; industrial/manufacturing risks and contents

such as machinery, plants, equipment and accessories; goods including

raw material, material in process etc.

 

MAIN PARTS OF STANDARD FIRE INSURANCE POLICY 

  1. Declaration: This includes the description and location of the properties

insured, name of insured, as well as premium payable.

  1. Contractual agreement and guidelines of the policy: This includes the

premium amount, responsibilities of the insured, steps the insured must

take in the event of loss and resultant claims.

  1. Policy conditions: This describes what suspends or restricts the policy

coverage.

  1. Policy exclusions: These are risks not covered under the policy. e.g.

(a) Loss or damage caused by war, civil war and kindred perils, nuclear

risks, pollution or contamination.

(b). Loss or damage to bullion or unset precious stones, curios or works of

art, manuscripts, plans drawings, securities, obligations, any kind of

documents, stamps, coins, paper money, cheques, books of accounts,

business books, computer system records and explosives.

NOTE THAT: Some of these properties may be covered subject to special

terms and conditions.

(c). Loss or damage to the stocks in cold storage premises caused by

change of temperature, though deterioration of stocks in cold storage

premises due to power failure may be covered by an endorsement.

(d). Loss or damage to any electrical/ electronic machines, apparatus,

fixtures and fittings arising from over running, excessive pressure, short

circuiting, arcing, self-heating or leakage of electricity etc.

TYPES OF FIRE INSURANCE ISSUED BY INSURANCE COMPANIES IN

NIGERIA

(a)Valued policy

(b)Consequential loss policy

(c)Specific policy

(d) Excess policy

(e)Average policy

(f) Floating policy

(g) Adjustable policy

(h)Blanket policy

(i)Reinstatement policy

(j) Comprehensive policy

(k)Valuable policy

 

ELEMENTS OF FIRE/SPECIAL PERILS INSURANCE

(i)Storms, tempest and flood

(ii)Impact by vehicle

(iii)Earthquake

(iv)Aircraft damage

(v)Strike, riot and civil disturbance

(vi)Burst pipes causing overflowing of water tanks

(vii) Bush fire

(viii)Explosion due to industrial works

(ix)Tornado and cyclone.

COMPENSATION PROCEDURES IN FIRE INSURANCE CONTRACT

a.) Fire insurance without average clause: The insurance company will only

be liable for the estimated amount of loss suffered.

b.) Fire insurance with average clause: The insurance company will be

liable based on the amount insured x actual loss/value of property.

EVALUATION:    1. State the features of fire insurance

  1. Outline and explain the main parts of a standard fire insurance policy
  2. What are the compensation procedures in fire insurance contract?

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively