Lesson Plan for JSS Two (Age 12)
Subject: Business Studies
Class: JSS 2
Week of the Second Term: 8th Week
Topic: Insurance
Sub-Topic: Functions of Insurance, Insurance Policies, Types of Motor Vehicle Insurance: Third-party, Comprehensive
Objectives
At the end of the lesson, students should be able to:
- Explain the functions of insurance in personal and business contexts.
- Describe different types of insurance policies and their importance.
- Differentiate between third-party and comprehensive motor vehicle insurance.
Entry Behaviour
Students should have basic knowledge of the concept of risk and the need for protection in financial matters.
Instructional Materials
- Business Studies textbook
- Charts showing types of insurance policies
- Case studies of motor vehicle insurance claims
Reference Materials
Egbe, T. E., Osu-Nwufo, K. O., Makeri-Yahaya, G. I., & Oladunjoye, T. G. (2017). Business Studies For Junior Secondary School 2 (BEC Edition). Spectrum Books Limited.
Inanga, E. L., Ojo, E. C., & Mustafa, A. (2017). Business Studies For Junior Secondary School 2 (BEC Edition). University Press PLC.
Content
Functions of Insurance, Insurance Policies, Types of Motor Vehicle Insurance: Third-party, Comprehensive
Insurance serves as a critical component of financial security for individuals and businesses. This section will explore the essential functions of insurance, the different types of insurance policies available, and specifically examine the types of motor vehicle insurance, focusing on third-party and comprehensive coverage.
Functions of Insurance
Insurance fulfills several vital functions, including:
- Risk Management:
Insurance helps individuals and businesses manage the financial impact of risks and uncertainties. By transferring the risk to an insurance company, policyholders can protect themselves against significant financial losses. - Financial Protection:
Insurance provides financial security by compensating policyholders for losses incurred due to unforeseen events, such as accidents, natural disasters, or theft. This financial protection ensures that individuals can recover from setbacks without severe financial strain. - Encouragement of Savings:
Certain insurance policies, such as life insurance and endowment policies, encourage savings by combining protection with investment. Policyholders can build a cash value over time, which can be beneficial in the future. - Promoting Stability:
Insurance contributes to economic stability by reducing the impact of financial losses on individuals and businesses. This stability promotes consumer confidence and economic growth. - Legal Requirement:
Some forms of insurance, such as vehicle insurance, are legally required in many jurisdictions. This ensures that individuals have the necessary coverage to protect themselves and others in case of accidents.
Insurance Policies
An insurance policy is a formal contract between the insurer and the insured, outlining the terms and conditions of coverage. Key components of an insurance policy include:
- Premium: The amount the insured pays periodically (monthly, quarterly, or annually) to maintain coverage.
- Coverage: The specific risks or events that the policy protects against, such as accidents, theft, or natural disasters.
- Exclusions: Specific situations or events that are not covered by the policy, which the insured should be aware of.
- Deductible: The amount the insured must pay out of pocket before the insurer covers the remaining costs for a claim.
- Claim Process: The procedures the insured must follow to file a claim and receive compensation for a covered loss.
Understanding these components is crucial for policyholders to ensure they have appropriate coverage and know their rights and responsibilities.
Types of Motor Vehicle Insurance
- Third-Party Insurance:
Third-party insurance is the minimum legal requirement for vehicle owners in many regions. This type of insurance provides coverage for damages or injuries caused to other people or their property in an accident where the insured is at fault. Key features include:- Liability Coverage: Covers legal liabilities for bodily injuries and property damage caused to third parties.
- No Coverage for Insured Vehicle: Third-party insurance does not cover damages to the insured’s own vehicle in case of an accident.
- Cost-Effective: Generally less expensive than comprehensive insurance, making it a popular choice for budget-conscious drivers.
While third-party insurance fulfills legal obligations and protects against financial liabilities to others, it does not offer protection for the insured’s own vehicle or injuries.
- Comprehensive Insurance:
Comprehensive insurance provides extensive coverage for the insured vehicle, protecting against various risks beyond third-party liabilities. This includes:- Collision Coverage: Covers damages to the insured vehicle resulting from a collision with another vehicle or object, regardless of fault.
- Comprehensive Coverage: Protects against non-collision-related incidents, such as theft, vandalism, fire, or natural disasters.
- Personal Injury Protection: May include coverage for medical expenses for the insured and passengers in the event of an accident.
Comprehensive insurance offers a higher level of protection and peace of mind, as it covers both third-party liabilities and damages to the insured vehicle.
Step 1: Introduction
Lesson Presentation (Step-by-Step Procedure)
Others removed.
