Understanding of Insurance

Insurance

Insurance is one of form operation of the risk done by transfer risk from one party to other party in this case is company of insurance.

What is understanding of insurance?

According to KUHD section of 246 mentioned that “insurance or responsibility is an agreement by which a underwriter bind itself to a the insured, by accepting a premium, for replacement to it because an expected by advantage loss or damage the possibly will be suffered by it because the event don't certainly”. The other meaning of insurance is what overflows risk of first party to other side. In case overflows mastered by orders punish and the applying principal him and also the teaching is universal which embraced by first party and other party.

From economic facet, insurance mean a gathering of fund able to be wearied to close or give the indemnification to natural people loss.

What is benefit of insurance?

Beside as a form of operation of risk (financially), insurance is also have various the benefit classified into : fundamental function, secondary function and additional function. Fundamental function of insurance is as transfer of risk, gathering of well-balanced premium and fund. Secondary function insurance is to stimulate growth of effort, prevent loss, operation of loss, have the social benefit and as saving. Is while additional function of insurance is as fund investment and invisible earnings.

Do all risks can be insured?

Don'T all risks can be insured. Risks able to be insured is : risk able to be measured with money, homogeneous risk (same risk and quite a lot guaranteed by insurance), pure risk (this risk don't deliver advantage), risk particular (risk of individual source), risk that happened suddenly (accidental), insurable interest (the insured have importance to the object responsibility) and the risk not illegal.

What is agreement of insurance?

Insurance Agreement is agreement in the form of the is insurance policy book of its contents explain the the parties rights and obligations for example the side buy protection of insurance (client) and the side publish the insurance policy (Company of insurance). Become the rule of the game and its procedures clear in writing in the insurance policy book, when one of them doing wan achievement or break a promise hence the side in harming can claim his rights into civil jurisdiction, if there are any deception element hence can in litigate at criminal justice.