In pairs, imagine you are insurance brokers. Based on research into Irish insurance providers, suggest a suitable insurance company and policy type to the following clients:
1. Carolyn Smyth is going skiing in France. 2. Peter Neville has moved into a new house. 3. James Boyce has bought a new car. 4. Jane Reilly is the main income earner in her household.
My household insurance A
Go to page 76 of your Activities and Accounts Book to record all the types of insurance your household has taken out.
PRINCIPLES OF INSURANCE There are five principles (rules) of insurance, which protect the insurance company.
This principle states that the insured person must have a personal interest in the item being insured. That is, they must gain by its existence and suffer from its loss.
Example David Walsh can take out insurance on his own house as he would suffer if it was damaged. He cannot, however, take out insurance on his neighbour’s house as any damage to it would not cause him a loss.
The Principle of Indemnity
This principle states that the insured person must not make a profit from insurance. In the event of a loss, they will be covered to the value of that loss but will not receive any extra money.
Example
Nina Mulholland insured her new watch for €200. If the watch is lost or stolen, the insurance company will pay her €200 and no more.
