INSURANCE

1
INSURANCE COVER
2
LIFE INSURANCE

• Term insurance
• Insures life for a specified period
• Example Ten years
• Cheapest form of life insurance
• Whole life
• Endowment
• Pays if you survive after a number of years
• Investment
• Unit linked policies
• Ties insurance to an investment scheme
• Only small amount of life cover
• Premium allocated to basket of shares

3
LIFE INSURANCE

• Critical illness
• Provides for a lump sum in the event of the
  insured being diagnosed as having a specified
  illness.
• Sometimes called dread disease
• Annuity
• Insurer agrees to make regular payments in
  exchange for a lump sum
• Various types of annuity
• Premium based on the life expectancy of the
  insured or on the probability of contracting a
  specified illness.

4
MEDICAL INSURANCE

• Rules instead of policies - Works on membership
  basis
• Premium based on community rating as opposed to
  actuarial
• Only two companies in the market

5
PROPERTY INSURANCE

• Covers loss or damage to property
• Fire insurance
• Covers buildings and contents.
• Fire
• Explosion
• Special perils
• Storm
• Flood
• Earthquake
• Burglary or theft insurance
• Loss or damage caused by theft following upon
  forcible and violent entry to or exit from the
  premises. Excludes family members and employees
• Contractors all risk

6
MOTOR

• Private vehicle
• Commercial vehicle
• Agricultural vehicles
• Fleets
• Cover
• Third party
• Third party fire and theft
• Comprehensive

7
Marine, Aviation and Transit

• Marine
• Hull
• Cargo
• Liability
• Provident and Indemnity clubs
• Aviation
• Hull
• Satellites
• Cargo
• Liability

8
TRANSIT

• Goods in transit by land
• Cover
• Fire,
• Fire, collision and overturning
• Fire, theft, collision and overturning
• All risks

9
PECUNIARY

• Money insurance
• Burglary policy excludes money so this policy
  picks up losses from the premises or from a
  directors home or whilst in transit.
• Fidelity insurance
• Theft by employees
• Business interruption
• Covers loss of profits and increased cost of
  working following a fire. Can be obtained on
  different types of risks.
• Profits defined as net profit plus standing
  charges or gross profit less variable charges

10
LIABILITY

• Third party liability
• Basic policy covering liability to third parties
• Excludes
• Employees
• Professional negligence, i.e. advice, design and
  the like
• Products
• Workmens compensation/Employers liability
  policy
• Covers employers liability to employee.

11
LIABILITY

• Products liability
• Covers liability arising out of the use of a
  product
• Professional liability or errors and omissions
• Covers advice and design etc.
• Liability extensions are found on various
  policies.
• E.g. Motor
• Houseowners
• Householders
• Contractors all risk
• To some extent property

12
ENGINEERING

• Machinery breakdown
• Computers, loss of data
• Boilers
• Loss of profits from machinery breakdown

13
LIVESTOCK

• Farms animals
• Risks
• Fire
• Lightning
• Explosion
• Aircraft
• Earthquake
• In transit
• Sickness
• Injury

14
BLOODSTOCK

• Covers registered horses.
• Four sections
• Mortality - death by accident, illness or disease
• Theft or straying
• Liability to persons or property as arising out
  of the use of a horse.
• Life saving surgery fees up to a fixed amount

15
PERSONAL INSURANCE

• Personal accident
• Houseowners
• Householders
• All risks
• Caravans
• Personal liability
• Travel
• Private motor

16
QUESTIONS