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CHAPTER 5- RISK MANAGEMENT AND LIFE INSURANCE - Coggle Diagram
CHAPTER 5- RISK MANAGEMENT AND LIFE INSURANCE
TYPES OF INSURANCE COVER
General Insurance
Householder
Building or contents protection
Motor Insurance
Third party or Act cover
Personal Accident
Death from accident
Travel Insurance
Passport loss or luggage
Medical and Health Insurance
Hospital, medicine, disability
Life Insurance
Term Insurance
Covers limited time and more cheaper
Whole Life Insurance
Lifetime coverage and higher premium
Endowment Plan
Insurance and savings
Annuity Plan
Income during retirement
TIPS BUYING INSURANCE
Understand coverage and terms
Avoid unnecessary add-ons
Choose the right policy for your needs
Compare rates and policies
Buy from authorized agents
TAKAFUL
Free from interest (Riba), gambling (Maysir)
Risk shared among participants
Follows Shariah law
Mutual cooperation
Known as Islamic Insurance
INSURANCE POLICY
Insurable Interest
Suffer financial loss
Utmost Good Faith
Disclose all facts
Indemnity
Restore to pre-loss position
Contribution
Shared liability if multiple insurers
Subrogation
Insurer can recover from 3rd party
Proximate Cause
Main cause of loss
INSURANCE
Protection against financial loss
PREMIUM
Fee paid by policyholder
TYPES OF RISK
Peril
Fire or accident (cause of loss)
Hazard
Factor increasing chance of loss
Liability risk
Lawsuits
Property risk
Damage or theft
Pure risk
Accident
Personal risk
Disability or illness
Speculative risk
Gambling (loss or gain)
RISK MANAGEMENT METHODS
Avoidance
Reduction
Assumption
Shifting