Insurance and Tax - Chapter 12

Insurance and Tax - Chapter 12

1. Risk Management

   • 1. Identifies all the risks
   • 2. Works out costs if any of the risks actually happen
   • 3. How much protection costs.
   • 4.Takes measures to protect the business
   • Security Measures
     • Risk of theft
     • Security guards
     • Install an Alarm
   • Proper Training
     • Health and safety courses
     • Act in a manner that causes least ammount of accidents
     • Lifting heavy weights properly
   • Insurance
     • Annual Premium
     • Compensate them for value of any loses sustained

2. Principles of Insurance

   • 1. Utmost Good Faith
     • Proposal form (Truth)
     • Must volunteer any material information
     • No compensation if they lied
   • 5. Subrogation
     • Once compensated anything recovered belongs to them
   • 4. Contribution
     • Average Clause - [Amount insured with this insurer ÷ Value of the item]
     • Contribution - Claim × Amount insured with this insurer ÷ Total of amounts insured with all insurers
     • ↑×↓
   • 2. Insurable Interest
     • Benefit from its exsistance
     • Suffer from its loss (Financialy)
   • 3. Indemnity
     • Can not make a profit
     • Exactly equal to current worth

3. Insurance Premium

   • Risk
   • Value of the item
   • Claims
   • Profit
   • Government Tax

4. Types of Insurance

   • Product Liability Insurance
     • Protects the business should any customer be injured by the businesses products
   • Employer's Liability Insurance
     • Injured or made ill at work through the fault of his employer
   • Motor Insurance
     • Third Party
     • Thrid party, Fire and Theft
     • Comprehensive
   • Public Liability Insurance
     • Any member of the public is injured or his property is damaged due to the business's negligence while he is on the business's premises
   • Theft Insurance
   • Fidelity Guarantee Insurance
   • Plate Glass Insurance

5. Importance of Insurance for Business

   • Risk Management
   • Improved Cash Flow
   • Business Survival

6. Insurance a household should have

   • Health Insurance
   • Motor Insurance
   • Life Assurance
   • Mortgage Protection Insurance
   • House and Contents Insurance

7. Reasons for Taxation

   • Raise Money
   • Redistribution of Wealth
   • To discourage consumption

8. Taxes by Household

   • PAYE
   • PRSI- Pay related social insurance
   • USC
   • Capital gains tax
   • VAT
   • Capital Acquisitions tax
   • DIRT - Deposit Interest Retention tax
   • Motor Tax

9. Taxes by Businesses

   • Self-assessment Income tax
   • Corporation Tax
   • Value added tax
   • Commercial Rates
   • Customs Duties
   • Employers' PRSI