1. Importance of Insurance WELCOME ASPIRE

2. ASPIRE • Define the term Insurance ? • Why do we need insurance?

3. ASPIRE Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring.

4. ASPIRE Why do we need Insurance? • Risk (uncertainty) • Investment criteria • Legal

5. ASPIRE Risk, Peril and Hazard Peril is a specific cause of loss while hazard is a condition that creates or increases the chance of a loss

6. Types of Hazard • Physical Hazard • Moral Hazard • Morale Hazard • Legal Hazard

7. Risk Management Technique

8. ASPIRE Insurance Contract: • The Insurance Contract between Insured (policyholder) and Insurer (Insurance Company). • The person undertaking the risk is called the insurer and the person whose loss is to be made good is called the insured.

9. ASPIRE Insurance contracts are designed to meet specific needs and thus have many features not found in many other types of contracts.

10. ASPIRE Legal Principles of Insurance Contract: Indemnity– Insured Interest Insurable Interest - is what distinguishes insurance from gambling. Utmost good faith - Material facts must be disclosed. Contribution –

11. ASPIRE e) Subrogation – the insurance company acquires legal rights to pursue recoveries on behalf of the insured f) Proximate Clause– the cause of loss (the peril) must be covered under the insuring agreement of the policy.

12. ASPIRE g) Mitigation – In case of any loss or casualty, the asset owner must attempt to keep loss to a minimum, as if the asset was not insured.

13. ASPIRE The Objectives of Business Insurance • Primary Objectives: • To provide certainty • To provide protection • To ensure risk-sharing

14. ASPIRE • (b) Secondary Objectives: • To prevent loss • To provide capital • To improve efficiency • To facilitate economic progress

15. Types of Insurance

16. ASPIRE Steps selecting Insurance Product: • When deciding which insurance product and carrier to select, considerations beyond cost must be examined.

17. ASPIRE Other important considerations include • Quality of service • Scope of service • Lines or breadth of coverage and • Financial stability.

18. ASPIRE ghh

19. ASPIRE THANK YOU