Besides, as a form of risk control (financially), insurers also have a
variety of benefits which are classified into the following functions:1. Main Function (Primary)
a) Transfer of RiskAs a means or mechanism for the transfer of the possible risks / losses (chance of loss) of the insured as "Original Risk Bearer" to one or more person (a risk transfer mechanism). So that the uncertainty (uncertainty) in the form of possible losses as a result of an unexpected event, will be transformed into a definitive insurance protection (certainty) to change the disadvantage into an indemnity or compensation claim with a premium payment terms.
b) Grouper FundAs a collector of funds from the public (policyholders) to be paid to those who are unfortunate, funds raised in the form of insurance premiums or ber- costs paid by the insured to the insurer, are managed in such a way so that the fund berkemang, which later will be used for pay for losses that may be suffered by one of the insured.
c) Premium BalancedTo set such that the premium payments made by each - each insured is balanced and reasonable compared with the transfer of risk to the insurer (equitable premium). And the size of the premium to be paid by the insured is calculated based on a premium rate (rate of premium) multiplied by the Insured Value.
2. Additional Functions (Secondary)
a) Export Covert (invisible export)
As a covert sale of commodities or goods unreal
(intangible product) out of the country.
b) Economic Growth Stimulators (economic stimulus)
Is to stimulate business growth, prevent loss, control
losses, social benefits and the savings.
c) Means savings fund investments and invisible earnings
d) Means of Prevention & Control of Losses
Insurance purposes1) Provide a guarantee of protection from the risks of losses suffered by one party.2) Improving the efficiency, because it does not need to specifically hold the security and
supervision to provide protection that takes a lot of energy, time and
cost.3) Equity costs, ie enough to expend a certain amount
and do not need to replace / pay for their own losses arising that amount is not necessarily
and uncertain.4) The basis for the bank to extend credit because banks require collateral
the protection of collateral provided by the borrower money.5) For savings, because the amount paid to the insurance will be refunded
in larger quantities. This is particularly true for life insurance.6) Closing Loss of Earning Power person or business entity at the time he could not
functioning (working)