1. Section 5 divides insurance business into two classes
1.1. 1) Life business - Concerned with life policies shall include any type of insurance business carried on as incidental only to the life insurer's business.
1.2. 2) General business - Insurance business which is not life business.
2. Common examples of insurance
2.1. i) Life insurance
2.2. ii) Marine insurance
2.3. iii) Fire insurance
2.4. iv) Accident insurance
2.5. v) Motor insurance
2.6. vi) Aviation insurance
3. Two types of insurance
3.1. 1) Contingency insurance
3.1.1. involves a contingent event of payment and the sum which is not measured by the loss but stated in the policy.
3.1.2. the insurer's has liability to pay certain fixed sums specified in the policy, on the death, accident or sickness of the insured.
3.2. 2) Indemnity insurance
3.2.1. The measure of loss is indicated by the amount of payment made.
3.2.2. The insurer has to pay the actual amount of loss covered by the insurance policy.
3.2.3. If the risk does not occur then no payment is made to the insured.
4. Premium of insurance
4.1. To insured promises to pay to the insurer a sum of money called"premium".
4.2. Section 2(1) of Financial Services Act 2013,"premium"
4.2.1. The amount payable to an insurer under policy as consideration for the obligations assumed by the insurer
4.3. Premium may consist of
4.3.1. 1) A lump sum
4.3.2. 2) Periodic payments
5. Policy of insurance
5.1. Insurer that setting up the terms of the insurance contract to the insured is called "policy" of insurance.
5.2. Section 2(1) of Financial Services Act 2013,"policy"
5.2.1. An insurance policy and includes a cover note or evidenced by an whether or not contain in or evidenced by an instrument in the form of an insurance policy.
5.2.2. Issuing a policy shall be construed as entering into a contract of insurance and includes a policy or a bond in respect of which the insurer is under any liability.