Insurance - Junior Cycle - Business Studies
Introduction
- Insurance is a key concept in business studies and is crucial for managing risks.
- Insurance involves a contract where an individual or entity receives financial protection or reimbursement against losses from an insurance company.
Types of Insurance
Personal Insurance
- Covers individuals for specific risks.
- Includes
- Health insurance
- Life insurance
- Car insurance
Property Insurance
- Provides coverage for damages to property.
- Includes
- Home insurance
- Renters insurance
Liability Insurance
- Protects individuals and businesses from legal liabilities.
- Essential for businesses to protect against legal claims.
Principles of Insurance
- Indemnity: Insured should not profited from insurance.
- Insurable Interest: Policyholder must benefit from the insurance.
- Utmost Good Faith: Both parties must disclose all relevant facts.
- Subrogation: Insurer can pursue a third party that caused an insurance loss.
- Contribution: If multiple policies cover a risk, all insurers share the loss.
Importance of Insurance
- Risk Management: Helps manage and mitigate risk.
- Financial Security: Provides a safety net for unexpected events.
- Legal Requirement: Some insurances are mandatory (e.g., car insurance).
Consumer Rights & Responsibilities
- Understand terms and conditions of policies.
- Disclose all relevant information when applying for insurance.
- Review policies regularly to ensure adequate coverage.
Additional Resources
- Quizzes and Flashcards: Useful tools to test knowledge.
- Questions Section: For further clarification on insurance topics.
Conclusion
- Mastery of insurance concepts is essential for business students.
- Practical application in real-world risk management scenarios.
For more details and exploration of different topics like Consumer Rights & Responsibilities, visit SimpleStudy or explore their quizzes and flashcards.
Try the App