Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: First Term
Week: 5
Age: 15 years
Duration: 45 minutes
Subject: Insurance
Curriculum Theme: Insurance
Previous Lesson: Classification of Risk.
Topic: Hazards
Subject Matter: Definition of physical hazard in property, examples of physical hazards in life, motor and liability, moral hazards including carelessness and dishonesty.

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define hazard in the context of insurance.
Differentiate between physical and moral hazards.
State examples of physical hazards in property, life, motor, and liability insurance.
List examples of moral hazards, including carelessness and dishonesty.

Affective Domain:

Appreciate the importance of identifying hazards in daily life.
Show willingness to avoid situations that can lead to moral hazards.

Psychomotor Domain:

Classify various scenarios as either physical or moral hazards.

Discuss the impact of different hazards on insurance claims and community safety.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Senior Secondary Schools.
State Unified Scheme of Work for Insurance SSS 1.
Olagunju, A.O. (2018). Comprehensive Insurance for Senior Secondary Schools 1-3. Ibadan: University Press PLC.
https://www.investopedia.com/terms/h/hazard.asp
https://www.irmi.com/term/hazards

Instructional Materials

The teacher will teach this lesson with the aid of:

Whiteboard/Chalkboard and markers/chalk.
Charts illustrating different types of hazards.
Examples of hazards from the school environment.

Rationale for the Lesson

Understanding hazards is important for pupils because it helps them identify potential risks in their environment and how these risks affect insurance. This knowledge enables them to make better decisions regarding safety and property protection in their daily lives.

Prerequisite/Previous Knowledge

Pupils should have a basic understanding of insurance concepts such as premium, policy, and risk from previous lessons.

Lesson Content/Board Summary

Hazards in Insurance

Definition of Hazard

A hazard is a condition or situation that increases the likelihood or severity of a loss occurring. It does not cause a loss, but it makes a loss more probable or more damaging.

Types of Hazards

Hazards are broadly classified into two main types:

Physical Hazards
Moral Hazards

Physical Hazards

Physical hazards are conditions or characteristics of a risk that are observable and measurable, increasing the chance of loss. They are tangible and can be seen or felt.

The following are examples of physical hazards in different insurance categories:

In Property Insurance:
- Faulty electrical wiring in a building.
- Slippery floors or broken stairs.
- Proximity of a building to a highly flammable factory.
- Old and dilapidated structures prone to collapse.
In Life Insurance:
- Engaging in dangerous occupations (e.g., mining, deep-sea diving).
- Pre-existing health conditions (e.g., heart disease, diabetes).
- Advanced age.
In Motor Insurance:
- Poor vehicle maintenance (e.g., worn-out tyres, faulty brakes).
- Bad road conditions or sharp bends.
- Driving in areas prone to vehicle theft.
In Liability Insurance:
- Unsafe premises at a business location.
- Lack of warning signs for potential dangers.
- Defective products manufactured by a company.

Moral Hazards

Moral hazards are conditions or characteristics that arise from the attitudes, actions, or intentions of an individual, increasing the chance of loss. They are intangible and relate to human behaviour.

The following are examples of moral hazards:

Carelessness:
- Leaving doors and windows unlocked, making a property vulnerable to theft.
- Failing to maintain a car properly, leading to accidents.
- Ignoring safety regulations in a workplace.
Dishonesty:
- Deliberately causing a loss to claim insurance benefits (e.g., arson, faking an accident).
- Exaggerating the extent of damages or injuries in an insurance claim.
- Providing false information on an insurance application.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils and reviews the previous lesson on basic insurance concepts. The teacher then asks pupils to identify risky situations they have observed in their daily lives, such as broken staircases or bad driving habits.
Pupils’ Activity: Pupils respond to the teacher’s questions and share examples of risky situations.
Learning Point: Pupils recall previous knowledge and are prepared for the new topic.

Step 2: Presentation of Topic

Time: 3 minutes
Teaching Skill: Introduction/Communication
Teacher’s Activity: The teacher introduces the topic “Hazards” and writes it on the whiteboard. The teacher explains that today’s lesson will focus on understanding what hazards are and their different types in insurance.
Pupils’ Activity: Pupils listen attentively and write down the topic in their notebooks.
Learning Point: Pupils know the topic of the lesson.

Step 3: Definition of Hazard

Time: 7 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher explains the definition of hazard, emphasizing that it increases the chance of a loss but does not cause it directly. The teacher provides simple analogies to make the concept clear.
Pupils’ Activity: Pupils listen, ask questions for clarity, and write down the definition in their notebooks.
Learning Point: Pupils understand the meaning of hazard.

Step 4: Physical Hazards

Time: 10 minutes
Teaching Skill: Explanation/Elaboration
Teacher’s Activity: The teacher explains what physical hazards are, giving examples in property, life, motor, and liability insurance as outlined in the lesson content. The teacher uses the school environment for practical examples.
Pupils’ Activity: Pupils listen, observe, and contribute examples from their own experiences or the school environment. They take notes.
Learning Point: Pupils can identify and provide examples of physical hazards.

Step 5: Moral Hazards

Time: 8 minutes
Teaching Skill: Explanation/Clarification
Teacher’s Activity: The teacher explains moral hazards, focusing on carelessness and dishonesty. The teacher provides clear examples for each, discussing how human behaviour influences the likelihood of loss.
Pupils’ Activity: Pupils listen, differentiate between physical and moral hazards, and discuss the implications of such behaviours. They take notes.
Learning Point: Pupils understand moral hazards and can differentiate them from physical hazards.

Step 6: Discussion and Reinforcement

Time: 5 minutes
Teaching Skill: Questioning/Engagement
Teacher’s Activity: The teacher facilitates a brief discussion, asking pupils to provide new examples of both physical and moral hazards. The teacher addresses any misconceptions and reinforces key learning points.
Pupils’ Activity: Pupils actively participate in the discussion, ask questions, and offer their own examples.
Learning Point: Pupils’ understanding is reinforced through active participation and clarification.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define ‘hazard’ in the context of insurance.
Differentiate between a physical hazard and a moral hazard.
State two examples of physical hazards in motor insurance.
Mention two ways dishonesty can lead to moral hazard.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 2 minutes
Teaching Skill: Summarization/Assignment
Teacher’s Activity: The teacher summarizes the main points of the lesson, reiterating the definitions and types of hazards. The teacher assigns homework: “List five physical hazards you can identify in your home environment and five moral hazards that people might exhibit.”
Pupils’ Activity: Pupils listen to the summary and copy down the homework assignment.
Learning Point: Pupils consolidate their learning and apply knowledge to their personal environment.

Lesson Keywords

Hazard – A condition or situation that increases the likelihood or severity of a loss.
Physical Hazard – A tangible characteristic or condition of a risk that increases the chance of loss.
Moral Hazard – An intangible characteristic or behaviour of an individual that increases the chance of loss.
Carelessness – A lack of proper attention or concern, leading to increased risk.
Dishonesty – Deceptive behaviour intended to gain an advantage, often by increasing or causing a loss.

Differentiation

For pupils who grasp the concepts quickly, the teacher will encourage them to research and present on how insurance companies assess different types of hazards. For pupils who require more support, the teacher will provide simplified examples and use visual aids more extensively, offering one-on-one guidance during activity time.

Note for teachers using this lesson plan

Teachers should ensure that pupils clearly understand the distinction between a hazard and a peril (the actual cause of loss). Encourage real-life examples from the pupils’ environment to make the lesson relatable. Emphasize the ethical implications of moral hazards.