Summaries made from the "Consumo Business Studies Grade 12" book. These are notes that can be used for the IEB matric final or any IEB portfolio assessment. Notes include summaries of all the content for each chapter.
When insurance is taken out, the insured pays a premium to the insurer to
cover the risk of a specific event that may occur
(premium based on personal needs, risk profile of customer, value of the asset)
INDEMNIFIED – The insured will be in the same financial position as before the
loss occurred
Insurance –
This is INcase something happens
The events may/may not happen
The insured will be indemnified in case of the risk occurring
EXAMPLES: theft, fire, motor, house
Assurance –
Managing events that are certain to happen
Managing the risk of our loved ones being without income if we die
Managing the risk of being unable to maintain a decent standard of
living after retirement
EXAMPLES: Life policy, endowment plans, annuity plans
1. Insurable + Non insurable Risks
Unaffordable risks include:
1. War – this is a risk that should be managed by the government
2. Bad Debts – unaffordable and the risk is allowed by the company when
selling on credit
3. Price fluctuations – time between when goods are bought and goods are
delivered is a business risk
4. Trading inventory – this becomes outdated due to changes in fashion
5. Technology – cannot take out insurance against machinery becoming
outdated
6. Illegal acts – cannot take out insurance against committing a felony
(getting a speeding ticket)
, 2. Types of Insurance
A) Compulsory Insurance
1. Unemployment Insurance Fund (UIF)
Gives short term relief to workers when they are unemployed, on maternity
leave, have an illness or to dependents of a deceased
Also pay people who have been affected by COVID in 2020
A father or someone in same sex relationship who has had a baby can
claim 10 days
If a surrogate parent was used, one can claim
Adoption leave can be claimed if the adopted child is less than 2 years
old
a) Contributions:
The employee contributes – Responsible for paying the amount
1% of their gross salary to SARS
The employer contributes –
An equal amount to the 1% of employees gross salary
NB – the ceiling amount is R14 872 per month (limit of total contribution)
Max you can claim is R17 712 per month
b) People excluded from the fund:
Employees who work less than 24 hours
Employees who only earn commission
Employees who work for provincial government
c) Recent people added in the fund:
Foreigners working in the country
Employees on learnerships
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller daelfeldman. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.62. You're not tied to anything after your purchase.
