Chap 9. Household and business insurance

• Insurance is a contract made with an insurance company, in return for a fee known as a premium, the insurance company will compensate the insured for any loss or damages suffered. Eg flooding in ireland 2016.
• Principles of insurance

  1. Insurable interest - benefits and suffer from existence.
  2. Utmost good faith - truthful info.
  3. Indemnity - can't profit.
  4. Subrogation - any property left is taken by insurance company.
  5. Contribution - insured with more than one company.
• Indemnity

  • Over-insurance - prevent, more than worth in order to make profit.
  • Under-insurance - premium down.
  • Average clause - insured fraction of the item worth.
• Risk management

  • Security devices
  • Health and safety programmes
  • Fireproof
  • Storage
  • Appoint a health and safety officer
• Compulsory insurance

  1. Third party motor insurance
  2. Employees and employers - PRSI
  3. Holidaymakers - medical
  4. Bank - life assurance
• Household insurance

  1. Motor
  2. Buildings and content
  3. Personal accident
  4. Health
  5. Critical illness
  6. Life assurance
• Business insurance

  1. Motor
  2. Key person
  3. Public liability
  4. Products liability
  5. Employers liability
  6. PRSI