What is Insurance?

In principle, every time we could get hig risk situation. Insurance is one form of risk control is carried out by switch / transfer risk from one party to the other party in this case is an insurance company.

What is insurance?
According KUHD articles 246, mentioned that “the insurance or guaranty is an agreement by which an insurer to a self-tie Insured, receive a premium, the replacement for him as a damaged or lost profits that may be expected because of an experienced event that is not necessarily “. The other, insurance is a transfer of risk from the first party to the other party. In the diversion mastered by the rule of law and the introduction of the principles and teachings of the universal of the party and other parties.

In terms of economics, insurance means a collection of funds that can be used to close or to provide compensation to people who might be loss.

What are the benefits of insurance?
In addition to forms of control risk (financially), insurance also has a variety of benefits that are classified into: the main function, the skunder function and additional functions.
The main function of insurance is as a diversion risks, the collection of funds and balance of premiums. Skunder insurance function is to stimulate business growth, prevent loss, damage control, and have a social benefit of saving money. While insurance is an additional function as investment funds and invisible earnings.

Are all risks can be insured?
Not all risks can be insured. The risks can be insured is the risk that can be measured with money, homogeneous risk (the risk of the same and quite a lot is guaranteed by insurance), the risk of pure (this does not incur the risk of profit), particular risk (the risk of an individual source), the risk of going on suddenly (Accidental), insurable interest (Insured have on the object guaranty) and the risk that is not contrary to law.

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This entry was posted on Saturday, April 4th, 2009 at 10:56 and is filed under Business, Insurance, Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.