SOME KEY TERMS

• Warranty
• Employee's PRSI
• Write-off
• No-claims bonus
• PPI(Payment Protection Insurance)
• Proposal Form

INSURANCE

• Insurance is borrowing money and agreeing to pay it back with interest in the future

PRINCIPLES OF INSURANCE

• Insurable Interest
• Utmost good faith
• Indemnity
• Subrogation
• Contribution

INSURABLE INTEREST

UTMOST GOOD FAITH

• Answering all questions truthfully
• E.g.If you are applying for motor insurance and are asked about penalty points,you say you have 0 when you have 8,They may not give you motor insurance

INDEMNITY

• A profit cannot be made from insurance
• E.g.If a house is robbed for €5500,The maximum amount that can be payed out is €5500

SUBROGATION

• When the insurance company pays compensation for an insured item,the right of ownership of that item passes to the insurance company

CONTRIBUTION

• When the same risk is insured by more than 1 insurer they will divide the claim between them.

EXAMPLE OF CONTRIBUTION

• If a claim is made to 2 insurers,When a car is crashed and the car value is €500,000,the owner of the car may claim €500,000 from one insurer or €250,000 from both insurers

TYPES OF INSURANCE

• Motor Insurance
• House Insurance
• Health Insurance
• Pet Insurance

MOTOR INSURANCE

• Motor insurance is compulsory in Ireland.
• This means it is required and it is a criminal offence to drive without motor insurance
• If you are caught without insurance you could face a €5000 fine,5 penalty points and a 6 month prison sentence

HOME INSURANCE

• This covers your home in the event of a fire,flood or storm damage.
• It provides compensation for you in these events

HEALTH INSURANCE

• This covers medical costs.
• It can provide cover for a hospital stay and operations.

PET INAURANCE

• Pet insurance pays for the veterinary treatment of a persons ill or injured pet
• Some policies even pay out when the pet dies or is lost or stolen

THE JOBS OF THE INSURANCE INDUSTRY

• Insurance broker
• Agent
• Actuary
• Loss Adjuster

INSURANCE BROKER

• A broker helps households and individuals to get the insurance that best fits their needs
• Insurance brokers search the market to find the best policy and price for their client

AGENT

• An agent sells policies on behalf of only 1 insurance company

ACTUARY

• Decides on the premium that should be charged
• They use statistics and probability to access risk
• The greater the risk,the higher the premium will be

LOSS ADJUSTER

• A loss adjuster will look into a claim for compensation and decide if the claim is covered by the insurance company