– Insurance is one of the oldest parts of economy and human life. The number of insurance classes has grown.
– People buy individual insurance to protect themselves against risks such as loss, damage, injury and so on.
– Companies protect themselves too – business insurance.
– Roman soldiers were paid and part on their money was given to a special fund. If they were killed in the battle their families got his money.
– Over the centuries people who wanted to have an insurance joined onto a club or society and pay money into the fund every year. There was one problem: how much money should each person put into the fund?
– This question was solved by James Dodson, the maths teacher, who worked in London. He said that people should pay so much money how probable is that they might die. It depended on the age of the person, how healthy he or she was and how risky job he did.
Principle of insurance
1st underwrite an insurance policy
– If you want to protect yourself you must underwrite an insurance policy – a contract which shows what you are insured against and the level of compensation that will be paid.
2nd pay premium
– You must pay a sum of money called premium – price of insurance paid monthly, quarterly or annually. The premium is related to the risk: the bigger the risk, the higher the premium
3rd make a claim
– After the accident you must make an insurance claim for compensation.
4th financial compensation
– Insurance companies are in business to make profit. Therefore they aim to collect more money in premiums then they have to pay out in claims.
– They are usually established as joint-stock companies and provide a wide range of types of insurance.
– They are large investors on the stock market.
In the Czech Republic there are Czech and foreign companies, for example:
- Česká pojišťovna
- Kooperativa …
Some useful words
- Underwriter pojistitel
- Broker makléř, zprostředkovatel
- On behalf of general public jménem široké veřejnosti
- Insurance classes druhy pojištění
- Endowment insurance pojištění pro případ dožití nebo úmrtí
Lloyd’s of London
– It is a very old international insurance market from the 17th century. Originally it dealt only in marine insurance but now covers almost any risk (oil refineries, aircraft, road vehicles, satellites) but not life. It consists of two types of members:
– Underwriters – they sell insurance. They are usually very wealthy people who are responsible for paying insurance claims which they underwrite.
– Brokers – they buy insurance on behalf of the general public. They deal with underwriters and help people to choose the best insurance.
– There are two groups of insurance:
a) Whole life – premiums are paid until insured person dies. The sum of money is then paid out to the dependents.
b) Endowment insurance – premiums are paid for an agreed number of years. The client can receive the money at the end of this period or if the clients dies earlier, dependents inherit the money.
– I. against all risks
– Burglary i.
– Travel i.
– Car i.
– Household i.
– Property i.
– Fire i.
– Health i.
– i. of medical expenses
– i. of youth
– i. against natural hazards (floods, earthquakes, hurricanes)
Insurances of goods
– Goods-in-transit i.
– Cash-in-transit i.
– Insolvency i.
– Foreign investment i.
- In the CR – all citizens are covered by compulsory health insurance. It is basically free (we pay for seeing the doctor and per prescription). Employers pay H.I. for their employees, private persons pay for themselves, the state pays for children, students and retired people.
- In the UK – National Health Service provides free medical care to all people in the country. It is based on general taxation.
- In the USA – there is no national health insurance. There are only private i. companies which can decide weather to insure a person or not. A lot of people have not enough money to pay for the insurance. If they are ill, they get into debts or they have to go to charity hospitals, which are not very good.
Disadvantages of H.I. in the CR and in the UK
– Long waiting list for surgery
– The government does not have enough money
– Not enough beds in hospitals
– Not enough nurses
What is an insurance policy?
What is a premium?
What do you know about Lloyd’s of London?
What kinds of non-life insurance do you know?
What do you know about health insurance in the Czech Republic, Great Britain and the USA?
- Protect chránit
- Insurance policy pojistná smlouva
- Premium pojistné
- Compensation náhrada škody
- Claim požadavek
- Risk riziko
- Provide poskytovat
- Underwrite podepsat
- Joint-stock company akciová společnost
- Stock market burza
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