Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: First Term
Week: 7
Age: 15 years
Duration: 45 minutes
Subject: Insurance
Curriculum Theme: Insurance
Previous Lesson: Hazards.
Topic: Insurable and uninsurable risks
Subject Matter: Meaning of insurable risks, insurable risks in life (premature death, disability, retirement, medical expenses), property risks, liability risks (employer liability), meaning of uninsurable risks, examples of uninsurable risks (earthquake, war, bad publicity, natural causes).

Specific Objectives

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

Cognitive Domain:

Define insurable risks.
Identify various types of insurable risks.
Define uninsurable risks.
Give examples of uninsurable risks.

Affective Domain:

Appreciate the importance of distinguishing between insurable and uninsurable risks.
Participate actively in discussions about different risk categories.

Psychomotor Domain:

Classify given risks as either insurable or uninsurable.
Prepare a simple chart listing insurable and uninsurable risks.

Collaborate with peers to identify and discuss different types of risks.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Senior Secondary Schools (Insurance).
State Unified Scheme of Work for Insurance SSS 1.
Any relevant Insurance textbook for Senior Secondary Schools (e.g., “Comprehensive Insurance for Senior Secondary Schools”).
National Insurance Commission (NAICOM) website
Investopedia – Insurable Risk

Instructional Materials

The teacher will teach this lesson with the aid of:

A whiteboard or chalkboard.
Markers or chalk.
Cardboard table of insurable and uninsurable risks.
Charts displaying various types of risks.
Pictures illustrating different risk scenarios.

Rationale for the Lesson

This lesson helps pupils understand the fundamental concepts of risks that can be covered by insurance and those that cannot. This knowledge is important for making informed decisions about personal and business protection in their daily lives.

Prerequisite/Previous Knowledge

Pupils should have a basic understanding of what risk is and the general concept of insurance.

Lesson Content/Board Summary

Insurable and Uninsurable Risks

Meaning of Risk

Risk refers to the possibility of suffering harm, loss, or danger. In insurance, it is the uncertainty concerning the occurrence of a loss.

Insurable Risks

Insurable risks are those risks that meet certain criteria, making them acceptable for insurance coverage. An insurable risk is one that an insurance company is willing to cover because the potential loss is measurable, predictable, and accidental.

The following are characteristics of insurable risks:

Losses must be accidental and uncertain.
Losses must be measurable in financial terms.
Losses must be definite in time and place.
The risk must not be catastrophic for the insurer.
There must be a large number of similar exposure units.
The premium must be affordable.

Types of Insurable Risks

Insurable risks can be broadly classified into:

Life Risks: These relate to the uncertainty of human life.

Premature death
Disability (temporary or permanent)
Retirement (loss of income in old age)
Medical expenses (illness or injury)

Property Risks: These involve damage to or loss of physical assets.

Fire
Theft
Flood
Accidental damage to buildings, vehicles, or goods

Liability Risks: These arise from legal obligations to others due to negligence or wrongful acts.

Employer liability (e.g., workers’ compensation for employee injuries)
Public liability (e.g., injury to a customer on business premises)
Professional liability (e.g., malpractice by a doctor)

Uninsurable Risks

Uninsurable risks are those risks that insurance companies are generally unwilling or unable to cover because they do not meet the criteria for insurable risks. These risks are often difficult to measure, predict, or could lead to catastrophic losses for the insurer.

The following are characteristics of uninsurable risks:

Losses are often speculative (potential for gain or loss).
Losses are difficult to quantify financially.
Losses are not accidental or beyond human control.
Losses are often catastrophic and widespread.
Lack of a large number of similar exposure units.

Examples of Uninsurable Risks

The following are examples of risks typically considered uninsurable:

Earthquake (often excluded or require special, expensive coverage due to catastrophic potential)
War and civil commotion
Bad publicity or loss of reputation
Market fluctuations or economic recession
Changes in fashion or consumer taste
Gambling or speculative business ventures
Intentional self-inflicted injury

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, reviews the previous lesson briefly, and then introduces the new topic by asking pupils to mention some common risks they know or have heard about (e.g., fire, accident, illness). The teacher then explains that not all risks can be covered by insurance.
Pupils’ Activity: Pupils respond to questions and listen attentively.
Learning Point: Pupils are prepared for the new lesson and connect it to their existing knowledge.

Step 2: Explanation of Insurable Risks

Time: 10 minutes
Teaching Skill: Explanation/Clarification
Teacher’s Activity: The teacher explains the meaning of insurable risks, highlighting the characteristics that make a risk insurable. The teacher uses the cardboard table and charts to illustrate these points.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the concept and characteristics of insurable risks.

Step 3: Examples of Insurable Risks

Time: 10 minutes
Teaching Skill: Illustration/Discussion
Teacher’s Activity: The teacher gives detailed examples of insurable risks, categorizing them into life, property, and liability risks, including specific examples like premature death, disability, medical expenses, fire, theft, and employer liability. The teacher encourages pupils to suggest other examples.
Pupils’ Activity: Pupils contribute examples, participate in discussions, and classify the risks.
Learning Point: Pupils can identify and categorize various insurable risks.

Step 4: Explanation of Uninsurable Risks

Time: 5 minutes
Teaching Skill: Explanation/Comparison
Teacher’s Activity: The teacher explains the meaning of uninsurable risks and contrasts their characteristics with those of insurable risks, emphasizing why insurance companies avoid them. The teacher refers to the charts.
Pupils’ Activity: Pupils listen and note the differences.
Learning Point: Pupils understand the concept and characteristics of uninsurable risks.

Step 5: Examples of Uninsurable Risks

Time: 5 minutes
Teaching Skill: Illustration/Discussion
Teacher’s Activity: The teacher provides examples of uninsurable risks such as earthquake, war, bad publicity, and market risks. The teacher explains why these specific examples are generally uninsurable.
Pupils’ Activity: Pupils discuss the examples and understand the reasons for their uninsurability.
Learning Point: Pupils can identify and explain common uninsurable risks.

Step 6: Differentiating Insurable and Uninsurable Risks

Time: 5 minutes
Teaching Skill: Comparison/Analysis
Teacher’s Activity: The teacher facilitates a short discussion, guiding pupils to compare and contrast insurable and uninsurable risks based on their definitions and characteristics. The teacher may use a Venn diagram on the board or chart.
Pupils’ Activity: Pupils actively participate in the comparison, highlighting key differences.
Learning Point: Pupils can clearly differentiate between insurable and uninsurable risks.

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 insurable risk.
Mention three characteristics of an insurable risk.
List three types of insurable risks under life risks.
Give two examples of uninsurable risks.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 5 minutes
Teaching Skill: Summarization/Assignment
Teacher’s Activity: The teacher summarizes the key learning points of the lesson, reiterating the distinction between insurable and uninsurable risks. The teacher then gives a take-home assignment: “Research and write down two other examples of uninsurable risks not discussed in class, and explain why they are uninsurable.”
Pupils’ Activity: Pupils listen to the summary and copy the assignment.
Learning Point: Pupils consolidate their learning and are given an opportunity for further research.

Lesson Keywords

Risk – The possibility of suffering harm, loss, or danger.
Insurable Risk – A risk that meets specific criteria making it acceptable for insurance coverage.
Uninsurable Risk – A risk that does not meet the criteria for insurance coverage, often due to being unpredictable, unmeasurable, or catastrophic.
Life Risks – Risks related to human life such as death, disability, or old age.
Property Risks – Risks involving damage to or loss of physical assets.
Liability Risks – Risks involving legal responsibility for harm or injury to others.

Differentiation

For pupils who grasp concepts quickly, the teacher will encourage them to research and present more complex examples of insurable and uninsurable risks in different industries. For pupils who require more support, the teacher will provide simplified examples and offer direct guidance during classification activities, focusing on core definitions and common examples.

Note for teachers using this lesson plan

Encourage real-life scenarios and local examples to make the lesson more relatable to pupils. Use visual aids effectively to help pupils distinguish between the two types of risks. Emphasize that while some risks are uninsurable by standard policies, specialized or government-backed schemes might exist for certain catastrophic events.