Insurance is an agreement that occur between the customer and the insurance company. The
contents of the agreement is that the insurance company is willing to
bear the amount of money loss due to something in the future after the
customer approves the payment of money (premium). Insurance there are several types and each has the same objectives in general insurance. The types of insurance include life insurance, accident insurance, insurance loss, and there is also a fire insurance.
Premiums or money paid by customers are usually much smaller when compared to natural losses that will be experienced by the customer if certain events actually occurred. Many insurers are requiring customers to pay a premium once a month, but there are also insurers who receive premium payments vary. The amount of premiums paid also varies with the type of insurance and insurance companies. But usually the size of the premium to be paid is calculated on the basis of a premium rate multiplied by the sum insured.
Here is the function and purpose of insurance may increase your knowledge about insurance and further strengthen your intention to insurance.
1. Function Insurance
The following are the main functions of insurance:
A. The transfer of risk
The transfer of these risks means that the risk will be transferred to the insurance company as an insurer. So that the amount of uncertainty of the losses suffered by the customer due to an unexpected event will be reimbursed by the insurer in the form of restitution or compensation claims because the customer has to pay a premium.
B. Fund Raising
Funds from the customer will be collected and later by the insurance company in the fund will be managed so that they can develop. Results from the management of customer money will be used to pay compensation if the customer experience unexpected events and adverse.
C. Balancing Premium
The insurance company will arrange for payment of premiums by the risks to be covered by insurance. Thus the two parties will not feel aggrieved by any such agreement. For in addition to life insurance, the premium amount will be determined on the basis of premium rate multiplied by the value of the coverage desired. For life insurance, usually the amount of the premium is usually based on an agreement or provision of insurance companies.
As for the additional function is as a means to fund investment savings, loss prevention and minimize losses. In addition, insurance is also useful to stimulate economic growth for the business increased.
Insurance purposes
Insurance has several purposes, among others, as a guarantor for customers to protect themselves from the risks that will be suffered in the event of unforeseen events. Insurance can also improve the efficiency of a thing, customers do not need to perform a variety of security measures and oversight because it will spend a lot of time and effort.
Insurance purposes as equity costs, means that the customer will only issue a certain fee and do not have to pay for losses from the insurance company will bear. This is very beneficial for customers because of the amount of the loss suffered is not necessarily numbers.
Insurance Life insurance has a very noble purpose, namely as a savings account. This is because the amount to be received is certain to be much larger than the amount of premiums paid. But unfortunately this is only true purpose for life insurance only.
Premiums or money paid by customers are usually much smaller when compared to natural losses that will be experienced by the customer if certain events actually occurred. Many insurers are requiring customers to pay a premium once a month, but there are also insurers who receive premium payments vary. The amount of premiums paid also varies with the type of insurance and insurance companies. But usually the size of the premium to be paid is calculated on the basis of a premium rate multiplied by the sum insured.
Here is the function and purpose of insurance may increase your knowledge about insurance and further strengthen your intention to insurance.
1. Function Insurance
The following are the main functions of insurance:
A. The transfer of risk
The transfer of these risks means that the risk will be transferred to the insurance company as an insurer. So that the amount of uncertainty of the losses suffered by the customer due to an unexpected event will be reimbursed by the insurer in the form of restitution or compensation claims because the customer has to pay a premium.
B. Fund Raising
Funds from the customer will be collected and later by the insurance company in the fund will be managed so that they can develop. Results from the management of customer money will be used to pay compensation if the customer experience unexpected events and adverse.
C. Balancing Premium
The insurance company will arrange for payment of premiums by the risks to be covered by insurance. Thus the two parties will not feel aggrieved by any such agreement. For in addition to life insurance, the premium amount will be determined on the basis of premium rate multiplied by the value of the coverage desired. For life insurance, usually the amount of the premium is usually based on an agreement or provision of insurance companies.
As for the additional function is as a means to fund investment savings, loss prevention and minimize losses. In addition, insurance is also useful to stimulate economic growth for the business increased.
Insurance purposes
Insurance has several purposes, among others, as a guarantor for customers to protect themselves from the risks that will be suffered in the event of unforeseen events. Insurance can also improve the efficiency of a thing, customers do not need to perform a variety of security measures and oversight because it will spend a lot of time and effort.
Insurance purposes as equity costs, means that the customer will only issue a certain fee and do not have to pay for losses from the insurance company will bear. This is very beneficial for customers because of the amount of the loss suffered is not necessarily numbers.
Insurance Life insurance has a very noble purpose, namely as a savings account. This is because the amount to be received is certain to be much larger than the amount of premiums paid. But unfortunately this is only true purpose for life insurance only.