Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 3rd Term
Week: 6
Age: 15 years
Duration: 45 minutes
Subject: Insurance
Curriculum Theme: Insurance
Previous Lesson: Introduction to Insurance Renewal.
Topic: Insurance renewal (cont)
Subject Matter: Legal status of renewal notice, long term agreement (LTA), use of NCD and LTD to ensure renewal, reasons for renewal of contracts.

Specific Objectives

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

Cognitive Domain:

Explain the legal status of an insurance renewal notice.
Identify what a Long Term Agreement (LTA) in insurance means.
Describe how No Claim Discount (NCD) and Loyalty Term Discount (LTD) are used to encourage policy renewal.
List at least three reasons for the renewal of insurance contracts.

Affective Domain:

Appreciate the importance of renewing insurance policies on time.
Value the benefits of maintaining continuous insurance cover.

Psychomotor Domain:

Discuss the implications of not renewing an insurance policy.

Participate actively in group discussions about insurance renewal practices.

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.
Ejiofor, B.I. (2018). Comprehensive Insurance for Senior Secondary Schools 1-3. First Edition.

Instructional Materials

The teacher will teach this lesson with the aid of:

Charts illustrating renewal notices and discount benefits.
Whiteboard and markers.
Textbooks on Insurance for Senior Secondary Schools.

Rationale for the Lesson

This lesson helps pupils understand why insurance policies need to be renewed and the advantages of doing so. It enables them to appreciate the benefits of maintaining continuous insurance cover for protection against various risks.

Prerequisite/Previous Knowledge

Pupils are expected to have a basic understanding of what an insurance contract is and its initial terms from previous lessons.

Lesson Content/Board Summary

Insurance Renewal (Cont.)

Legal Status of Renewal Notice

A renewal notice sent by an insurance company is an invitation to renew the policy, not a legal obligation to renew. The policyholder is responsible for ensuring their policy is renewed before its expiry date if they wish to continue cover.

The following are points regarding a renewal notice:

It serves as a reminder to the policyholder.
It does not create a new contract or extend the old one automatically.
Failure to send a renewal notice does not absolve the policyholder of the responsibility to renew.

Long Term Agreement (LTA)

A Long Term Agreement (LTA) in insurance refers to an insurance policy taken out for a period longer than one year, typically two or more years. These agreements often come with benefits such as premium discounts or stability of terms over the agreed period.

Use of No Claim Discount (NCD) and Loyalty Term Discount (LTD)

No Claim Discount (NCD) and Loyalty Term Discount (LTD) are incentives offered by insurance companies to encourage policyholders to renew their policies and maintain good claims records.

No Claim Discount (NCD): This is a reduction in the premium offered to policyholders who have not made any claims on their policy during the previous period of insurance. The discount usually increases with each claim-free year.
Loyalty Term Discount (LTD): This is a discount given to policyholders who have consistently renewed their policies with the same insurance company over a specified period, demonstrating loyalty to the insurer.

Both NCD and LTD help to ensure renewal by rewarding policyholders financially for continuous patronage and responsible behaviour.

Reasons for Renewal of Insurance Contracts

There are several important reasons why insurance contracts are renewed:

Continuity of Cover: Renewal ensures that the policyholder remains protected against specified risks without any break in cover.
Maintaining Benefits: Renewal helps policyholders retain accumulated benefits like No Claim Discount (NCD) and Loyalty Term Discount (LTD).
Legal Compliance: Certain types of insurance, such as third-party motor insurance, are legally mandatory, making renewal essential to avoid penalties.
Protection against Unforeseen Risks: Life is uncertain, and renewing insurance provides ongoing financial protection against unexpected events like accidents, illness, or property damage.
Peace of Mind: Knowing that one is continuously insured provides a sense of security and peace of mind.

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 reviews the previous lesson on insurance contracts and asks pupils what happens when an insurance policy reaches its expiry date. The teacher then introduces the topic of “Insurance Renewal (Cont.)”.
Pupils’ Activity: Pupils respond to questions and listen attentively to the introduction of the new topic.
Learning Point: Pupils recall previous knowledge and are introduced to the lesson topic.

Step 2: Legal Status of Renewal Notice

Time: 8 minutes
Teaching Skill: Explanation/Clarification
Teacher’s Activity: The teacher explains the legal status of an insurance renewal notice, emphasizing that it is a reminder and not a legal obligation to renew. The teacher clarifies that the responsibility for renewal lies with the policyholder.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand that a renewal notice is a reminder, and the policyholder is responsible for renewal.

Step 3: Long Term Agreement (LTA)

Time: 7 minutes
Teaching Skill: Definition/Illustration
Teacher’s Activity: The teacher defines a Long Term Agreement (LTA) in insurance, explaining that it covers periods longer than one year and often comes with benefits. The teacher provides examples of how LTAs work.
Pupils’ Activity: Pupils listen, take notes, and identify benefits of LTAs.
Learning Point: Pupils learn the meaning and advantages of Long Term Agreements in insurance.

Step 4: Use of No Claim Discount (NCD) and Loyalty Term Discount (LTD)

Time: 10 minutes
Teaching Skill: Explanation/Demonstration
Teacher’s Activity: The teacher defines No Claim Discount (NCD) and Loyalty Term Discount (LTD). Using charts, the teacher demonstrates how these discounts are applied and how they serve as incentives for policy renewal.
Pupils’ Activity: Pupils observe the charts, listen to explanations, and discuss how these discounts encourage renewal.
Learning Point: Pupils understand how NCD and LTD work and their role in promoting policy renewal.

Step 5: Reasons for Renewal of Insurance Contracts

Time: 8 minutes
Teaching Skill: Brainstorming/Listing
Teacher’s Activity: The teacher guides pupils to brainstorm and list various reasons why individuals or businesses would choose to renew their insurance contracts. The teacher writes the points on the board.
Pupils’ Activity: Pupils actively participate by contributing reasons for renewal, which are then listed on the board.
Learning Point: Pupils can state and explain key reasons for renewing insurance policies.

Step 6: Class Discussion/Application

Time: 5 minutes
Teaching Skill: Facilitation/Discussion
Teacher’s Activity: The teacher facilitates a short discussion on the importance of timely renewal and the potential consequences of allowing an insurance policy to lapse. Pupils are encouraged to share their views.
Pupils’ Activity: Pupils engage in discussion, sharing their thoughts on the importance of renewal.
Learning Point: Pupils deepen their understanding of the practical implications of insurance renewal.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

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

Explain the legal status of an insurance renewal notice.
What does LTA stand for in insurance, and what does it mean?
Define No Claim Discount (NCD) and Loyalty Term Discount (LTD).
Mention three reasons why insurance contracts are renewed.

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 importance of insurance renewal. The teacher then gives pupils homework to find out about other types of discounts in insurance.
Pupils’ Activity: Pupils listen to the summary and copy down the homework.
Learning Point: Pupils consolidate their learning and are given tasks for further research.

Lesson Keywords

Renewal – The act of extending an insurance policy for another term after its expiry.
Renewal Notice – A document sent by the insurer reminding the policyholder that their policy is due for renewal.
LTA (Long Term Agreement) – An insurance policy covering a period longer than one year.
NCD (No Claim Discount) – A reduction in premium for not making a claim during the policy period.
LTD (Loyalty Term Discount) – A discount for continuously renewing a policy with the same insurer.
Grace Period – A short period after a policy’s expiry during which cover may still be active, allowing for late renewal.

Differentiation

For pupils who are struggling, the teacher will provide simpler explanations and focus on the core definitions and reasons for renewal. More advanced pupils will be encouraged to research specific examples of NCD/LTD applications in different insurance products and discuss the economic implications of long-term agreements for both insurers and policyholders.

Note for teachers using this lesson plan

Teachers should ensure to use real-life examples where possible to make the concepts of NCD, LTD, and renewal more relatable to pupils. Encourage active participation through questions and discussions to assess understanding throughout the lesson.