100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Insurance Business Studies Grade 12 Notes and Summary $2.81
Add to cart

Summary

Insurance Business Studies Grade 12 Notes and Summary

 10 views  0 purchase
  • Course
  • Institution

Notes and Summary on Insurance for Business Studies IEB Grade 12

Preview 1 out of 4  pages

  • July 3, 2024
  • 4
  • 2023/2024
  • Summary
  • 200
avatar-seller
INSURANCE AS PART OF RISK
MANAGEMENT
Insurance is when the insured pays a monthly premium (amount) to pass the risk on to the insurer.

Non-Insurable Risks
➢ War.
➢ Bad Debt is not non-insurable but is very expensive.
➢ Business risks like price changes.
➢ Trading stock that becomes outdated such as clothes.
➢ Machines that age or become outmoded.
➢ Unlawful action.
➢ Disasters caused by climate change.

2. General concepts regarding insurance:
2.1 Indemnity
This means the insured will be put in the same financial position as before the event (they will be compensated
sufficiently). This means a person cannot make a profit from insurance.

2.2 Security
This refers to long-term insurance and the purpose is to give financial security to the insured at retirement or
their dependants when they die, or they become disabled.

2.3 Average Clause
This is applied when the asset is not insured for the correct value.
Under-insured: The insured has not paid a premium sufficient to cover the full risk.
Over-insured: The asset is insured for more than its present value. Only the value of the asset will be paid out
by the insurer as the insured is not allowed to make profit from insurance. Vehicles are typically over-insured as
they depreciate over time.

2.4 Excess
This is the amount of the loss/claim the insured needs to pay. It is the amount that is not covered by the policy.

2.5 Proximate cause
If a person claims from an insurance company for a loss suffered, the company will ensure the loss was due to
the cause it was insured for (the immediate/real cause).

2.6 Subrogation
If the insured person has claimed for the insurance company for an accident, they cannot claim from the guilty
party who has caused the loss as well. The right to claim from the guilty party is given to the insurance
company.

2.7 Cession or to cede the policy
An endowment policy builds up cash over time. Should the immediate need arise by the insured for the money,
the policy may be signed over to a creditor as collateral in order to get the loan.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller shivaanharipersad. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $2.81. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52510 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$2.81
  • (0)
Add to cart
Added