Insurance is a willingness to set small losses (a bit) that it is definitely a replacement (substitution) large losses that have not been definitive.
From the above formulation can be concluded that, people are willing to pay a bit of a loss for the present, in order to face large losses that may occur in the future. Such as:
- Fire. In fire insurance, insuring one's house to the insurance company. In this case the person pays a premium to an insurance company. Whenever there is a fire, the company will reimburse losses caused by fire.
- Maritime Transport. In Marine Insurance is to underwrite the ship, cargo or cargo and others.
- So, in this case it turns out that, any losses that may occur in the future are dating, we move it to the insurance company. If we look at the branches of an existing insurance company, the insurance forms generally can be classified as follows.
- Insurance (General Insurance), which is on property, fire, and others.
- Variant Insurance (marine insurance, accident insurance, car insurance and theft).
- Life Insurance. Ie insurance related death, illness, disability and others.