What is Insurance?

- Insurance offers protection against possible loss and tries to put the insured person back in the same financial position they were in before the loss occurred.

An insurance policy sets out details of the types of losses covered and the amount of compensation to be paid.


- Compensation is a financial payment made to the insured person if they suffer an insured loss.

- Premium is the amount paid by the insured person to an insurer in return for providing insurance cover for a particular risk. It is a fraction of what the item is worth.

e.g. to insure a car worth €40,000 will cost between €500 and €1,000 depending on the person.

Rule Of Insurance

  • The greater the risk the more the Insurance costs (higher the premium).
  • The lower the risk the less it costs.

Example: Insurance for a learner driver is more expensive than an experienced driver. A person with a heart condition pays more for Insurance.

Insurance Terms

Insurance broker - helps households and individuals to get the insurance that best fits their need and their budget. Works for many insurance companies.

An Agent - sells policies on behalf of only one Insurance companies. E.g. Axa, Alliance.

An Actuary - is employed by the insurance company to decide on the premium that should be charged.

Loss Adjuster - will investigate a claim for compensation on behalf of the insurance company and decide if the claim is covered by the insurance policy.

Providers Of Insurance

  • Aviva
  • Churchill
  • FBD
  • VHI Healthcare
  • Allianz
  • 123.ie
  • AXA