3.

0 FUNDAMENTALS OF INSURANCE PRACTICE

3.1 Introduction
This course unit is intended to equip the trainee with knowledge, skills and attitudes
that will enable him/her to sell insurance products.

3.2 General Objectives

At the end of the course unit, the trainee should be able to:
a) apply the principles governing insurance practices
b) apply the relevant laws governing insurance operations
c) analyse the various classes of insurance
d) sell insurance products
e) provide effective insurance services to clients
f)
3.3 Course Unit Summary and Time Allocation

Code Topics Content Time

(Hours)
3.01 Nature of Insurance  Terms used in insurance 2
 Historical development of insurance
 Importance of insurance
 Functions of insurance
 Concept of risk transfers
3.02 Risk and Insurance  Components of risk 4
 Classification of risks
 Characteristics of insurable risks
 Methods of handling risks
3.03 Insurance Markets  Players in the insurance market 8
 Buyers of insurance
 Sellers of insurance
 Intermediaries in insurance
 Competition within insurance market

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 Code Topics Content Time
(Hours)
 Role of insurance service providers
 Associations in the insurance industry
3.04 Law of Contract  Meaning of the term contract 10
 Essentials of a valid contract
 Types of contracts
 Methods of discharging contracts
 Remedies for breach of a contract
3.05 Law of Agency  Nature of agency 12
 Creation of agency
 Types of agents
 Rights and duties of an agent
 Types of authority of an agent
 Termination of agency
3.06 Principles of Insurance  Terms used in principles of insurance 10
 Nature of principles of insurance
3.07 Classes of Insurance  Distinction between general and long 10
term insurance business
 Compulsory classes of insurance
3.08 Common Policy  Meaning of rates, 10
Terms and Conditions Commissions, policy terms and
claims settlements
 Usage of rates to compute premiums
 Calculation of commission
 Policy terms in an insurance contract
 Claim settlement process
3.09 Regulation and  Nature of regulation 10
Supervision  Role of Insurance Regulatory
Authority (IRA)
 Provisions of the Insurance Act
(1984) relevant to agent work
 Appointment, powers and duties of
the commissioner of insurance
 Registration requirements for an
agency
3.10 Application of  Meaning of Information and 6
Information Communication Technology (ICT)
CommunicationTechn

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 Code Topics Content Time
(Hours)
ology (IT)  Role of ICT in the insurance industry
in Insurance  Digital marketing of insurance
products and services
 Application of automation in
insurance
 Management of information systems
as used in insurance
 Mobility aspects in insurance
3.11 Sales and Marketing  Terms used in sales and marketing 6
 8 p’s of marketing
 Insurance distribution channels
 Factors affecting insurance selling
 Insurance sales process
 Qualities of an effective insurance
sales agent
3.12 Ethics  Meaning of Ethics 2
 Ethical practices in the insurance
industry
 Code of ethics for agents
3.13 Customer Service  Terms used in customer service 4
 Types of customers
 Customer expectations and
perceptions
 Techniques of handling difficult
customers
3.14 Entrepreneurship  Terms used in entrepreneurship 4
 Benefits of entrepreneurship
 Qualities of an entrepreneur
 Entrepreneurial culture
 Factors to consider when starting an
agency
 Types of insurance agency ownership
 Process of registering an agency
3.15 Emerging  Emerging issues and trends 2
issues and trends  Challenges posed by emerging issues
and trends
 Ways of coping with challenges

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 Code Topics Content Time
(Hours)
posed by emerging issues and trends
Total 100

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