Insurance III


Welcome to Class !!

We are eager to have you join us !!

In today’s Commerce class, We will continue learning about Insurance. We hope you enjoy the class!


Insurance commerce classnotesng



  1. Forms of life policy
  2. Accident insurance
  3. Marine insurance




  1. Whole life Assurance: Premiums are paid throughout the lifetime of the assured and the sum assured is payable only when the death of the holder of the policy occurs. This policy is taken for the benefit of dependents like children, wife and relations
  2. Term assurance: This is to cover the life of the policyholder for a specific period only and the sum assured is paid only if the policyholder dies before the specific date-i.e. no payment is made if he survives till the end of that date. This policy is usually taken to cover the life of the holder during a journey e.g by air.
  3. Endowment Assurance (Policy): Premiums are paid over an agreed number of years and the sum assured is paid either at the end of that specific time or when the policy-holder dies, whichever happens first.
  4. Annuities: This is a form of pension in which an insurance company, in return for a certain sum of money (paid in a lump sum or by instalment), agrees to repay this money plus the investment income that it is able to earn over the expected lifetime of the investor or for a specified period.





This covers all types of insurance except life, fire and marine. 



This provides for the payment of compensation for the death or bodily injury to any person arising from the use of vehicles on the road. There are two types of Motor Vehicle Insurance.

      • Third-Party Insurance Policy: This type of policy covers only the loss or injury suffered by the third party (i.e. passengers as well as property) but does not include loss or damage relating to the owner or his vehicle.
      • Comprehensive Insurance Policy: This covers the owner (driver), the insured vehicle, third parties and sometimes the contents of the insured vehicle. This type of policy is optional i.e. it is not compulsory under the law. Premiums paid under the comprehensive insurance policy are higher than those under third-party policies.



This policy covers the loss for partial or permanent deformity or disability arising from accident e.g. loss of sight, loss of limb etc.




  1. Give five reasons why a life insurance policy may be taken.
  2. Describe any five insurance policies which a large departmental shop owner may take.



Marine-Insurance commerce classnotesng


This consists of insurance cover for both ships and their goods (i.e. cargo) against risks at sea.


  1. Hull Insurance: This covers damage or loss both to the insured vessel (i.e. ship) and the damage or loss caused by it to other vessels. It is subdivided into Time policy and Voyage policy.
  2. Cargo Insurance: This covers goods and cargoes carried by ship. It makes provision for the refund of the value of goods or cargo carried by the ship-owner should the goods get lost or damaged at sea.
  3. Ships owners liability: This type of insurance covers all risks and losses for which the owner of a ship or its employees are liable for negligence in the handling of goods, injury to crew on board, dock workers, passengers, damage to other ships or to ports(i.e. installations at wharves, quays etc.)
  4. Freight insurance: This policy is taken to cover against refusal to pay charges for lifting the goods. Also, this shipowner may be called upon to refund the freight to the owner of the goods if the goods do not get to their destination (i.e. if the goods are lost in transit).



  1. Explain the following terms (a) Hull Insurance (b) Freight Insurance
  2. Distinguish between Third Party Insurance Policy and Comprehensive Insurance Policy



Essential Commerce for SSS by O.A Longe page 185-200


  • Give five advantages and four disadvantages of credit sales
  • Explain the different activities involved in industrial, commercial and service occupations
  • Explain five advantages and four disadvantages of transportation by pipelines
  • Give five functions of the Federal Airports Authority of Nigeria
  • State five aids to trade and explain how each facilitates trade



  1. List four insurance policies a shipowner can take
  2. List two examples of losses that can be compensated under a personal accident policy




We have come to the end of this class. We do hope you enjoyed the class?

Should you have any further question, feel free to ask in the comment section below and trust us to respond as soon as possible.

In our next class, we will continue learning about Insurance. We are very much eager to meet you there.


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