LML4805 SUMMARISED
NOTES 2022/2023
UNIT 1
Diagrammatic Overview
Study the diagrammatic overview for Learning Unit 1 that is attached to the study guide in
Addendum A.
Prescribed Study Material
Study the diagrammatic overview in conjunction with the following prescribed study material
for th...
,UNIT 1
Diagrammatic Overview
Study the diagrammatic overview for Learning Unit 1 that is attached to the study guide in
Addendum A.
Prescribed Study Material
Study the diagrammatic overview in conjunction with the following prescribed study material
for this
Learning Unit:
Learning Unit 1 in the study guide
Reinecke et al, paras 1.1–1.59
Learning Activities
Visit the Schedule for the module-related study plan as well as important dates and events.
Complete the self-assessment questions on Learning Unit 1 in the study guide.
Participate in the Discussion Forum on Learning Unit 1 to discuss self-assessment questions
and other questions arising from this Learning Unit with your fellow students.
1
LML4805/1
Concepts of insurance, insurance contract and insurance law; insurance in an economic and
legal sense; some classifications of insurance contracts
1.1 INTRODUCTION: INCIDENCE, MANAGEMENT AND SPREADING OF RISK
Underlying the whole idea of insurance as we know it today is the notion of the spreading of
risk. One
of the characteristics of human existence is that people, their assets and their expectations are
continuously under threat. The calamities to which man is exposed create a need for security
and
protection. This need may be satisfied in a number of ways. One of them is to distribute the risk
of the
occurrence of undesirable events among a number of persons. This is known as the spreading of
risk.
,Insurance is pre-eminently an instrument for the spreading of risk among a number of people
who are
all exposed to the same or comparable dangers or risks.
For further information on the incidence, management and spreading of risk, STUDY paragraphs
1.7
to 1.16 in Reinecke et al.
1.2 INSURANCE IN AN ECONOMIC AND LEGAL SENSE; INSURANCE CONTRACT
AND INSURANCE LAW
A distinction may be drawn between insurance in an economic sense and insurance in a legal
sense
(STUDY paragraphs 1.17–1.21 in Reinecke et al). This leads us to a definition, which is
preliminary
at this stage and should reconsider after you have studied some further (alleged) essential
features
of the insurance contract in later learning units (STUDY paragraphs 1.22 and 1.23 in Reinecke et
al).
A related notion is that of insurance law, its place in the general system of our law and its main
features
(STUDY paragraphs 1.24–1.28 in Reinecke et al).
1.3 CLASSIFICATION OF INSURANCE CONTRACTS
Insurance contracts may be classified in various ways. The distinctions emerging from these
classifications, especially the difference between indemnity and non-indemnity insurance, are
of
importance for any study of insurance law since some legal principles are said to apply to some
types
of insurance contract but not to others. Note that these classifications are not mutually
exclusive and
that a particular type of insurance (contract) may belong to several different classes at the same
time.
For example, a particular marine-insurance contract may simultaneously be an indemnity
insurance,
a property insurance, a short-term insurance and a valued insurance contract.
On the need for the different classifications and the way (or some of the ways) in which
insurance and
insurance contracts may be classified, STUDY paragraphs 1.29 to 1.59 in Reinecke et al.
Questions
(1) Distinguish between the following:
(a) indemnity insurance and non-indemnity insurance
(b) property insurance and liability insurance
(c) mutual insurance and premium (or for-profit) insurance
(d) fire insurance and marine insurance
(e) property insurance and personal-accident insurance
, (f) life insurance and death insurance
(g) life insurance and personal-accident insurance
(h) long-term insurance and short-term insurance
(i) long-term insurance and indemnity insurance
2
(j) a valued insurance contract and an unvalued insurance contract
(k) private insurance and social insurance
(2) Why is it necessary to distinguish between indemnity insurance and non-indemnity
insurance?
(3) What is the distinction between indemnity insurance and non-indemnity insurance?
3
LML4805/1
LEARNING UNIT 2
Diagrammatic Overview
Study the diagrammatic overview for Learning Unit 2 that is attached to the study guide in
Addendum A.
Prescribed Study Material
Study the diagrammatic overview in conjunction with the following prescribed study material
for this
Learning Unit:
Learning Unit 2 in the study guide
Reinecke et al, paras 2.1–2.46
Article by Van Niekerk on discrimination
Oudtshoorn Municipality case
Learning Activities
Visit the Schedule for the module-related study plan as well as important dates and
events.
Complete the self-assessment questions on Learning Unit 2 in the study guide.
Participate in the Discussion Forum on Learning Unit 2 to discuss self-assessment questions
and other questions arising from this Learning Unit with your fellow students.
4
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