Chapter 8 - Classes of Insurance1.pdf - CLASSES OF INSURANCE • • • • • • • • • • A B C D E F G H I J PROPERTY INSURANCE LIABILITY

Chapter 8 - Classes of Insurance1.pdf - CLASSES OF...

This preview shows page 1 - 11 out of 79 pages.

CLASSES OF INSURANCE A. PROPERTY INSURANCE B. LIABILITY INSURANCE C. GUARANTEE INSURANCES D. ACCIDENT INSURANCES E. TRANSPORT INSURANCE F. ORDINARY LIFE ASSURANCE G. INDUSTRIAL LIFE ASSURANCE H. RETIREMENT BENEFITS SCHEMES I. ANNUITIES J. INVESTMENT POLICIES
Image of page 1

Subscribe to view the full document.

Learning Objectives At the end of this chapter, the student should be able to: By the end of the topic, the trainee should be able to: distinguish between general and long term insurance business describe compulsory classes of insurance
Image of page 2
INTRODUCTION Various classes of insurance continue to be developed as changes occur in the society and economy and new needs arise. In this chapter we shall look at some of the main classes of insurance offered in the Kenyan insurance market. The classes of insurance are normally in two main categories: Life insurance and general insurance.
Image of page 3

Subscribe to view the full document.

The general insurance classes comprise property, liability, accident, guarantee and transport insurances. The Life assurance classes are also referred to as long-term insurance contracts and are benefit policies. Unlike in general insurance, in life assurance the event being assured is certain to happen, that is, death or maturity. The uncertainty is on when the event will occur. Life assurance classes of insurance comprise ordinary life assurance, industrial life assurance and superannuation schemes.
Image of page 4
GENERAL INSURANCE PROPERTY INSURANCES Fire and Related Perils (Material Damage) Currently fire insurance accounts for a fairly high proportion of total non-life insurance premium income in Kenya. The basic fire policy is called the standard fire policy because it covers the same perils, that is, fire, lightning, and limited explosion.
Image of page 5

Subscribe to view the full document.

Fire Fire is the actual ignition of something that should not be on fire, the cause being accidental or fortuitous. There are exclusions under this peril, however. Lightning Any loss caused by lightning is covered under fire policy.
Image of page 6
Explosion Explosion cover is limited to explosion of boilers or gases used for domestic purposes. The use, however, will determine if the boiler or gas is domestic. In this regard, a boiler located in the factory but used to boil water for making tea or washing hands is regarded as domestic.
Image of page 7

Subscribe to view the full document.

Special Perils Under a Fire Policy Social Perils Social perils are perils originating from actives of human beings. Examples are strikes, riots, malicious damage and civil commotion.
Image of page 8
Chemical Perils Chemical perils originate from the nature of the subject matter of insurance and include explosion and spontaneous fermentation or heating. The latter peril should be underwritten with care because: The property to be insured is usually prone to self heating; If it self -ignites it is very difficult to extinguish; Salvage prospects are low; Very careful control of storage is essential; and Insurers will need to incur costs of survey before accepting the risk.
Image of page 9

Subscribe to view the full document.

Natural Perils
Image of page 10
Image of page 11
  • Summer '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes