100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Business Studies Chapter 9: Insurance R133,00
Add to cart
Quickly navigate to
Preview
  2.  
  3. 12th Grade
  4.  
  5. Business Studies

Summary

Summary Business Studies Chapter 9: Insurance

 1 purchase

Summaries made from the "Consumo Business Studies Grade 12" book. These are notes that can be used for the IEB matric final or any IEB portfolio assessment. Notes include summaries of all the content for each chapter.

Preview 2 out of 11  pages

Document information

  • June 5, 2023
  • 11
  • 2022/2023
  • Summary

Subjects

Written for

All documents for this subject (444)

Seller

avatar-seller
daelfeldman

Reviews received

Content preview

Insurance – MATRIC WORK


When insurance is taken out, the insured pays a premium to the insurer to
cover the risk of a specific event that may occur
(premium based on personal needs, risk profile of customer, value of the asset)

INDEMNIFIED – The insured will be in the same financial position as before the
loss occurred

Insurance –
 This is INcase something happens
 The events may/may not happen
 The insured will be indemnified in case of the risk occurring
EXAMPLES: theft, fire, motor, house

Assurance –
 Managing events that are certain to happen
 Managing the risk of our loved ones being without income if we die
 Managing the risk of being unable to maintain a decent standard of
living after retirement
EXAMPLES: Life policy, endowment plans, annuity plans


1. Insurable + Non insurable Risks

Unaffordable risks include:

1. War – this is a risk that should be managed by the government
2. Bad Debts – unaffordable and the risk is allowed by the company when
selling on credit
3. Price fluctuations – time between when goods are bought and goods are
delivered is a business risk
4. Trading inventory – this becomes outdated due to changes in fashion
5. Technology – cannot take out insurance against machinery becoming
outdated
6. Illegal acts – cannot take out insurance against committing a felony
(getting a speeding ticket)

, 2. Types of Insurance


A) Compulsory Insurance


1. Unemployment Insurance Fund (UIF)

Gives short term relief to workers when they are unemployed, on maternity
leave, have an illness or to dependents of a deceased

 Also pay people who have been affected by COVID in 2020
 A father or someone in same sex relationship who has had a baby can
claim 10 days
 If a surrogate parent was used, one can claim
 Adoption leave can be claimed if the adopted child is less than 2 years
old


a) Contributions:

The employee contributes – Responsible for paying the amount
1% of their gross salary to SARS

The employer contributes –
An equal amount to the 1% of employees gross salary

NB – the ceiling amount is R14 872 per month (limit of total contribution)
Max you can claim is R17 712 per month

b) People excluded from the fund:

 Employees who work less than 24 hours
 Employees who only earn commission
 Employees who work for provincial government

c) Recent people added in the fund:

 Foreigners working in the country
 Employees on learnerships

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 EFT, 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 this summary from?

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

Will I be stuck with a subscription?

No, you only buy this summary for R133,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling
R133,00  1x  sold
  • (0)
Add to cart
Added