Insurance Concepts (Grade 12 NSC Matric Business Studies): Flashcards

Financial agreement between insurer & insured with premium payments

Regular payments insured makes to insurer

Insuring assets for more than their actual market value

Insuring assets for less than their true market value

Used when property/goods are under-insured

Amount insured ÷ Market value × Damages = Payout

Repairing/replacing damaged items rather than cash payment

Amount insured must pay towards claim before insurer pays

Insurance: may occur events; Assurance: certain events

Protects against events that may/may not happen short-term