Insurance

None of us can know what will happen tomorrow or the day after. As a human being we are only able to do what we can and we want to do with expectations get best results. By doing best even if it is possible for you or one of your family suffered a bad thing even very bad, like death. For that, we need to act one step closer to anticipating all the bad things that does not want in our lives by participating in the insurance program.

Insurance is a number of the premium money in lieu of loss, which may be suffered by a guaranteed, as a result of an event that is not yet clear (in his wirjono prodjodikoro insurance law in Indonesia). In addition, according to Robert I. Mehr and Cammack Emerson, in his book Principles of Insurance stated that insurance is a risk transfer (transfer of risk). Furthermore D.S Hansell, in his book Elements of Insurance stated that insurance is always associated with the risk.

From the opinions of the above can be concluded in general insurance is an agreement where a binding to a person insured to receive a premium, to provide reimbursement to him for a loss, damage or loss of expected benefits that may be suffered due to an event that is not certain.

The fundamental precept of coverage

within the coverage global there are six primary ideas of insurance that must be met, particularly insurable hobby, utmost proper faith, proximate motive, indemnity, subrogation and contribution.

1. Insurable hobby.
   It's far proper to insure bobbing up from a economic courting between the insured with the insured and legally. So, you're stated to have the interests of the insured item in case you go through a monetary loss in case of a catastrophe that causes loss or damage to such gadgets. financial interests allows you to insure your own home or interest. in the occasion of a disaster for the insured object and proved which you do not have a economic interest inside the object, then you definitely are not entitled to receive repayment.
2. Utmost appropriate faith.
   Is an action to reveal as it should be and completely, all information material (material reality) about something that could be insured whether or not requested or no longer. What it means is: the insurer must definitely provide an explanation for the whole thing real about the quantity of the phrases / situations of coverage and the insured have to additionally provide a clean and correct for gadgets or interests of the insured. the lowest line is which you are obliged to inform surely and carefully approximately all the essential records regarding the subject count insured. Even this precept explains the dangers which might be assured or is excluded, all phrases and situations of insurance surely and correctly.
3. Proximate cause.
   It's miles an lively cause, green reason that chain of occasions that leads to a result with out the intervention of the begin and running actively from a new and independent source. So, if the pastimes of the insured suffered natural screw ups or injuries, you'll first search for the causes of active and efficient that drives an unbroken chain of events that ultimately there are natural failures or accidents. A principle that is used to find the motive of the loss of lively and green are: "Unbroken Chain of occasions" which is a series of chain activities that are not interrupted.
4. Indemnity.
   It is a mechanism by using which the insurer affords economic repayment to position the insured in a monetary position that he had prior to the loss.
5. Subrogation.
   Turned into the switch of rights from the insured to the insurer demanded after a declare has been paid.
6. Contribution.))it's far the proper to invite different person equally bear, but it does not have the identical responsibilities to the insured to assist offer indemnity. you can best insure the equal belongings numerous coverage agencies. but if there is a loss for the insured item then mechanically applies the principle Contribution.

Kinds of risks that can be insured:

There are so many kinds of risks that can be insured depending on the type of insurance that we follow. But in general the risk to be insured, among others: 

1. Death
   Death can happen to anyone no matter how old or young even death can occur in a newborn baby. Death can occur unexpectedly at any time. And it would be a problem if they have children or dependents who still have financed his life. Therefore, it is quite necessary to have life insurance.
   


2. Accident
   Similarly, death, accidents can happen to anyone anywhere without unexpected can happen even when we sleep. Accident insurance provides insurance after an accident that required hospitalization, disability, or even death. Just as death insurance.
   


3. Sick
   To guard against this situation, it could take out health insurance. Currently, there are more and more insurance companies sell this product. There is a product that provides replacement plus reimbursement Hospital outpatient reimbursement, plus drugs as well.
   


4. Musing over the House
   Almost every day we hear news of the fire. Neither the fire market, office, and residential. When a disaster when it hit a house which we occupied at the moment. Are not we going to go the complicated and difficult, because not everyone has enough money to rebuild the affected areas, so much that eventually must stay at your house.
   


5.  Accidents on Vehicles
   Cars or motorcycles that nowadays has become the main vehicle to make it easier to work or other purposes (privately owned), also have the possibility of an accident.
   

Insurance Benefits

Insurance is very important because with the insurance program, means that we have done anticipation some bad things will happen to us and family members at a later date. In addition, many benefits we obtained. By participating insurance means that we have set our finances from now until the time we become better parents. Here are some Benefits Insurance General:

1. Help to manage finances. A premium means that we have already set our finances finances. This is because the obligation to pay the policyholder an insurance participant or a huge premium and the time is determined. So they are inevitably going to be more careful to allocate income. We spend money to save first, and then for other needs. This is in accordance with the advice of financial planners that theory it is a good savings, reduced income the new saving the rest for their daily needs. Instead of deducting income then the rest need to save.


2. Provide a guarantee of protection from the risks of losses by clients
   
   • Benefits of Life Insurance: if at any time in the course of our lives the unfortunate fatal that all people do not want, such as accidents road that could result in death, permanent disability/permanent disability, which is where it would require a huge cost for treatment, this is where life insurance benefits that we have, so the family focus is on the care / treatment is not frantically looking for the hospital costs. For more in-depth explanation read my next article, still in the writing process.
   
   
   • Benefits of Health Insurance: the insurance you have no need to worry anymore about the cost of health care, sufficient claim and show evidence of authentic then the insurance company will pay the cost of the hospital. For more in-depth explanation read my next article, still in the writing process.
   
   
   • Benefit Education: we do not know what the cost of education a few years when the favorite has been stepped up or college. With this education insurance at least we feel secure when large fees for registration awaits our children's education. For more in-depth explanation read my next article, still in the writing process.
   
   
   • Benefits Insurance Property & Possessions: property directly related to resource our lives must be secured such as shops, shop, home, car and possessions to another, in case of disaster in the future, there could be an accident in the street, fire, natural disasters , etc. By having this insurance we will get the cost of insurance in accordance with the rules of the insurance provider company. For more in-depth explanation read my next article, still in the writing process.


3. Increase efficiency, because it does not need to specifically conduct surveillance and patrolling to provide protection that takes a lot of energy, time and cost.


4. Risk Transfer; By paying a relatively small premium, a person or company can move the uncertainty of life and property (risk) to the insurance company.


5. Equitable cost, that is enough to expend a certain amount and do not need to replace / pay for their own losses arising whose number is not certain and uncertain.


6. Basis for the bank to extend credit because banks require a guaranteed protection of collateral provided by borrowers.


7. As a savings, because the amount paid to the insurance will be returned in larger quantities. This is particularly true for life insurance.


8. Closing Loss of Earning Power person or entity when it does not work (work)

Insurance Function

In addition to providing a variety of benefits as has been pointed out above, Insurance also has some functions that can be grouped into three sections covering: Function primary, secondary functions, and additional functions.

• The primary function of insurance is risk transfer, fundraising and premiums balanced. That is the risk of financial loss due to the occurrence of an insured event giving rise to financial loss in the switch to the insurer (example insurance companies) with contributions and premiums are balanced and in accordance with the contract of insurance.
• Secondary functions is to stimulate business growth, prevent loss, damage control, social benefits and savings.
• Additional functions namely as investment funds and invisible earnings.

How Insurance Works

Before you decide to join in one of the insurance program helps you to first understand how insurance works. In conventional insurance the insurer is called the Insurer, whereas people who buy insurance product called the insured or the policyholder, the insured pay a sum of money called a premium to buy the products provided by insurance companies. Insurance premiums paid by the insured into insurance company earnings, in other words the ownership transfer occurs premium fund of the insured to the Insurance Company. If the insured suffered in accordance with the risks set forth in the contract of insurance, then the insurance company has to pay a sum of money called the sum assured to insured or those who deserve it. Conversely, if in the end of the contract the insured does not run the risk that agreed the insurance contract ends, all the rights and obligations of both parties ended.

From the above process can be concluded that the displacement of the financial risk in insurance terms is called the transfer of risk from the insured to the Insurer. For example, if someone bought accident insurance policy for the car, then he should pay the money (premiums) that have been determined by the insurance company, at the same time the insurance company will bear the financial risk in the event of an accident on the car.

By reading this simple article I hope everything can be sure to immediately decide to buy an insurance policy, to ensure the security of our future and in accordance with the fund family and your needs. Thus a brief discussion of insurance, which I have collected from various sources. May be useful.