INSURANCE

INSURANCE – BASIC VOCABULARY HOW MANY WORDS DO YOU KNOW? ●INSURER ●INSURED ●COMPENSATION ●COVER ●REIMBURSE ●AGENT ●DAMAGES ●INSURANCE POLICY ●UNDERWRITE ●DAMAGE ● REINSURANCE ●BROKER ●PREMIUM ●CLAIM

READING – HOW INSURANCE WORKS – RB, p. 65 What is insurance? Why do people and businesses purchase insurance cover? What does a person or a business have to do if they want to purchase insurance? Do you know how the insurance business works? What happens if you suffer a loss?

READING – HOW INSURANCE WORKS – RB, p. 65 & 66 II Read the text and find the answers to those questions. III VOCABULARY - Find the words in the text which match the corresponding explanations. IV Match the verbs with the appropriate nouns to make collocations.

LISTENING - HOW TO TAKE OUT INSURANCE – RB, p. 66 Read the gapped text and think about what kind of words and expressions might be missing. Then, fill in the gaps as you watch the video: http://www.youtube.com/watch?v=ID9aevs-els Do the TASK VII, p. 67. Put the steps in taking out insurance in the chronological order. What types of insurance are mentioned in the talk?

INSURANCE COMPANIES AS FINANCIAL INTERMEDIARIES BETWEEN SAVERS AND INVESTORS CLAIMS POOL OF PREMIUMS OVERHEADS INVESTMENTS INDUSTRY GOVERNMENT INDIVIDUALS PROFITS

INSURANCE COMPANIES Do you remember the words from the graph? Fill in the missing words: As we can see from the graph, thousands of people pay ___________ to insurance companies, which use the money to pay ___________ to people who suffer loss or damage. A part of the money goes for ___________, and fixed and variable costs. The rest of the ___________ of premiums can be ___________ in the form of lending money to ___________, ___________ or ___________ in order to earn ___________. In this way insurance companies become large institutional ___________ that place vast sums of money in various securities.

BASIC TYPES OF INSURANCE THERE ARE FOUR BROAD CATEGORIES OF INSURANCE: FIRE MOTOR MARINE LIFE ACCIDENT CREDIT FIDELITY LIABILITY PROPERTY ______________ - primarily covers fire risk, but can also include cover against flood, theft, explosion and other risks to property. ______________ - insurance that pays out an amount when someone dies, or when someone reaches a particular age or dies before they reach that age ______________- insurance against loss or damage to property, against injury or sickness to people or against liability through negligence

BASIC TYPES OF INSURANCE THERE ARE FOUR BROAD CATEGORIES OF INSURANCE: FIRE INSURANCE - primarily covers fire risk, but can also include cover against flood, theft, explosion and other risks to property. LIFE INSURANCE - insurance that pays out an amount when someone dies, or when someone reaches a particular age or dies before they reach that age ACCIDENT- insurance against loss or damage to property, against injury or sickness to people or against liability through negligence

BASIC TYPES OF INSURANCE ______________ – another name for car insurance, insurance against a car being stolen, or damage to it and other cars in an accident; insuring a car, the driver and passengers in case of accident ______________ – covers the risk of liability for the injury or death of someone else caused by negligence ______________ – covers goods in transit or in store, as well as buildings and contents ______________ – covers against losses resulting from bad debts; insurance taken out by borrowers paying back loans that covers illness, losing their job and other events that may prevent them making the regular payments. ______________ – protects against loss by fraud and stealing by employees ______________ – applied to ships and their cargo

BASIC TYPES OF INSURANCE Motor insurance – another name for car insurance, insurance against a car being stolen, or damage to it and other cars in an accident; insuring a car, the driver and passengers in case of accident Liability – covers the risk of liability for the injury or death of someone else caused by negligence Property – covers goods in transit or in store, as well as buildings and contents Credit – covers against losses resulting from bad debts; insurance taken out by borrowers paying back loans that covers illness, losing their job and other events that may prevent them making the regular payments. Fidelity – protects against loss by fraud and stealing by employees MARINE INSURANCE - applied to ships and their cargo

Which types of insurance are illustrated by these pictures?

BASIC TYPES OF INSURANCE WHAT KIND OF INSURANCE DO YOU THINK YOU SHOULD TAKE TO PROTECT YOURSELF AGAINST: Your lorry being destroyed by fire? _________________________ Your client, while visiting your premises, being injured by a glass door?__________________________ A break-in at your premises? _________________________ An employee disappearing with a large sum of the company’s money? _______________________ A company going out of business and owing you 50,000 kn? ___________________________

TYPES OF INSURANCE – MORE DETAIL – RB, p.67 Identify the different types of insurance cover in TASK IX, and complete the sentences.

READING - LLOYD’S TSUNAMI EXPOSURE LIMITED – RB, p. 68 Read the article and comment: How do disasters affect a) insurers and b) the insured?