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3.1 RISK AND INSURANCE COVERAGE - Coggle Diagram
3.1 RISK AND INSURANCE COVERAGE
The meaning of risk and insurance
Risk is the possibility of a disaster that cannot be avoided
insurance is intended to transfer risks from individuals to insurance organisations
The key principle in the insirance system is to restore the financial position of the policyholder to the pre-loss condition , which is known as the
principle of indemnity
.
Life insurance and general insurance
Life insurance guarantees the payment of a stated amount of monetary benefits to the policyholder upon the death of the insured , or under other circumstances specified in the contract
General insurance provides coverage against any loss or damage incurred , apart from the risk covered by life insurance
Types of general insurance
1)Motor insurance
Provide coverage against any loss or damage related to the use of a motor vehicle
2)Fire insurance
Provide coverage against damage cause by fire , lightning and explosion that occur at home or business premise
3)Medical and health insurance
-Hospitalisation and surgical insurance
-Critical illness insurance
-Disability income insurance
-Hospital income insurance
4)Personal accident insurance
Provides coverage in the occurrence that the policyholder suffers a bodily injury , disability or death resulting directly from accident
5)Travel insurance
Protects policyholder against loses during travel whether by land , air or sea such as death and permanent disability , loss of luggage , passport and money , medical expences and others
Group insurance
1) Group insurance for organisation
Financial protection is provided to employees of an organisation in the events of death , disability , hospitalisation and surgery under certain policy and coverage limit
2) Group insurance for pupils
Financial protection is provided to pupils in the event of death , paralysis , disability and wheelchair allowance under certain policy and coverage limit