Summary
Summary NSC purple business book - grade 12 notes
All chapters are summarised and are easy to understand. :)
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
Business chapter 10 notesInsurance:
- Insurance covers potential loss
- Gives protection against theft, storm damage ext..
- Insurance can be short term = between insurance company (insurer) and individual or
business insured.
- Insurer will provide compensation for losses suffered
- Insured pays insurance a premium to insurer
- Premium is based on the value of assets at risk
AIM: protection of assets
Assurance:
- Taken out to cover risk that is certain eg: loss of life, retirement - (long term)
AIM: to provide security, covers long term risk
- Policyholder is the person taking out cover
- Beneficiary is the person to whom the policy will pay out
TYPES OF ASSURANCE INCLUDES:
- Life assurance = covers loss of life, policy exists for as long as you are alive and paying
premium
- Term assurance = life cover for a specific period or term, taken to cover a debt period
- Endowment = investment policy paying out after specified time period eg: 10 years
- Retirement annuity (RA) = to provide an income when reaching retirement age, 55-65
, - Disability cover = insured paid out predetermined amount on disability eg: loss of limb
- Trauma cover or dread diseases = policy covering list of serious illnesses eg: cancer
- Funeral cover = to pay funeral costs
Difference between insurance and assurance:
Insurance: Assurance :
- Taken out incase something happens - Taken out for things bound to happen
- Will be put back into first economic - Eg: retirement
position - Long term - death
- Short term risks eg: fire
NON COMPULSORY INSURANCE:
INSURABLE RISKS:
1. Fire insurance = covers damage resulting from a fire to building or stock
- Covers damage from smoke and water used to put out the fire
- Excluded - volcanoes, earthquakes and rots that cause fire
- Premium depends on: Risk and value
- Risk = nature of item or building, flammable, availability of extinguishing agents
- Value - of item
- Insurance contracts have a iron safe clause - forces insufred to keep ser of stock records
in fireporss safe, to have proof of stock before fire
2. Vehicle insurance = 2 options
- Insure vehicle against theft or fire but if insured is responsible it won't be covered
- Fully comprehensive, covers all dage no matter whos is responsible
- Premium depends on value of car and risk involved ( risk is like if i is in a high crime
area)
The benefits of buying summaries with Stuvia:
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
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller grade12notes. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R75,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83100 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now